This transition isn’t unusual; it’s fueled by several compelling factors including the allure of enhanced efficiency, cost-effectiveness, scalability and access to more cutting-edge technologies than available within their own teams and resources. Even General Electric (GE) ventured into creating its proprietary software, Predix, to tap into the Industrial Internet of Things (IoT) realm, only to encounter a financial quagmire. This tale illuminates the perilous terrain of homegrown software ventures.

A Smarter Solution

For direct selling companies that do move out of software development and embrace best-in-class third-party solutions, it acts as a lever, propelling them into a realm of streamlined operations, financial prudence and a technological leg-up. There are advantages tied to this strategic shift, shedding light on how it’s catalyzing companies to not just stay afloat but sail deftly in the ever-changing waters of direct selling.

Why the shift towards third-party solutions? With the right teams and people at the helm, it can be a strategic maneuver to drive enterprise companies forward. Here is a look at what lies ahead.

1/ Enhanced Efficiency and Focus

Embarking on the journey of developing and sustaining proprietary software solutions often morphs into a labyrinth of time-consuming and resource-draining endeavors. Companies may find themselves allocating hefty resources to software development, sidetracking attention and resources from their core competencies. The General Electric (GE) example serves as a cautionary tale. According to reports, GE’s digital missteps cost the company billions, illustrating the perilous financial precipice that accompanies homegrown software ventures. Conversely, by embracing top-tier third-party solutions, companies can harness the prowess and experience of specialized software vendors—enabling the streamlining of operations; curtailing development time; and recentering focus on core business pursuits. This metamorphosis catalyzes enhanced efficiency and productivity.

2/ Cost Effectiveness

The financial toll of constructing and sustaining proprietary software solutions is often a bitter pill to swallow. Companies must invest in skilled developers, infrastructure, routine maintenance as well as hardware and software updates. Alternatively, third-party solutions unfold as a cost-effective oasis. By capitalizing on pre-existing software platforms, enterprises dodge the upfront financial bullet tied to development and infrastructure. Moreover, third-party solutions predominantly operate on a subscription-based model, bestowing companies with the liberty to pay for merely the features and services they need. This cost-sensitive model empowers companies to redistribute their resources and funnel investments into other pivotal business domains.

3/ Scalability and Flexibility

The trajectory of growth and evolution of companies invariably transforms their software requisites. Proprietary homegrown solutions may stumble in matching the stride of escalating demands and intricacies of the distributors and customers. Third-party solutions, however, are crafted to embody scalability and flexibility—adapting effortlessly to evolving trends and requirements; accommodating user loads; and melding with other software systems seamlessly. This scalability and flexibility liberate companies from the shackles of software infrastructure limitations, positioning them to swiftly respond to market stimuli and outpace competitors.

4/ Access to Cutting-Edge Technologies

The digital times we are navigating are marked by a blistering pace of technological advancements. Keeping pace with contemporary advancements poses a challenge for companies anchored to proprietary software solutions. Third-party vendors, however, are stationed at the vanguard of technological innovation. Their hefty investments in research and development ensure their offerings are imbued with the latest technological upgrades—encompassing artificial intelligence, machine learning and data analytics. By adopting best-in-class third-party solutions, companies unlock the gateway to these technologies without the necessity for extensive in-house development. This capability empowers companies to leverage sophisticated tools and capabilities, fueling innovation, honing decision making and securing a competitive edge.

5/ Integration and Collaboration

The essence of seamless integration and collaboration among diverse software systems cannot be overstated. Proprietary homegrown solutions often stumble at the altar of compatibility and integration capabilities, culminating in data silos and inefficiencies. On the flip side, premier third-party solutions are engineered to meld with a spectrum of software platforms, facilitating a smooth data continuum and collaboration across varied departments and systems. This integration capability bolsters communication, data sharing and decision-making processes, engendering a more cohesive and efficient work ambiance.

6/ Risk Mitigation

Proprietary software requires tribal knowledge and legacy headcount. Oftentimes, homegrown software was envisioned and structured by teams that are no longer working for the enterprise company, leaving single points of human capital failure to drive the foundation of their entire software program. Leveraging current technology that is available via subscription ensures that an IT team is always integrating industry-standard solutions.

Optimized. Effective. Proactive.

The metamorphosis from proprietary homegrown software solutions to third-party alternatives for the enterprise marks a significant stride towards an optimized business model, encompassing heightened efficiency, cost-effectiveness, scalability, access to the cutting-edge technologies and seamless integration.

As the business landscape is in a state of perpetual evolution, the adoption of best-in-class third-party solutions emerges as a cardinal strategy in propelling companies forward. This strategic pivot not only equips enterprises to remain competitive, agile and innovative but also lays the foundation for navigating the evolving market landscape with a keen sense of foresight and adaptability. Through this lens, it’s unequivocal that the shift towards third-party solutions is not merely a fleeting trend, but rather a cogent strategy destined to drive business success in the modern era.

Jack Farris, Chief Sales Officer at Exigo, has over 30 years of experience in building global sales and leadership teams through both organic and acquisition growth, primarily for private equity-backed software companies. In addition, Jack was founder or principal partner in three companies, within three different industries, with successful investor/PE exits.

From the December 2023 issue of Direct Selling News magazine.

The post Shift from Proprietary Software to Third-Party Solutions first appeared on Direct Selling News.

In this new digital world, they expect whatever business(es) they choose to work with to be current with trends, simple to operate, profitable—and FAST! Plus, the competition to attract and retain field members is fierce in today’s workforce.

With a 3.7 percent unemployment rate, US employers are aggressively competing for workers everywhere—and the direct selling industry is no exception. Every direct sales business needs a strong, reliable, engaged and satisfied field, so the race for attracting talent in a competitive landscape can be challenging. The direct sales landscape (like all other industries) is unrecognizable compared to a decade ago and even more so in the past three years. Is this a good thing? YES!

The direct sales industry can compete within the gig economy and win! As a channel, we have so much more to offer. We are, after all, The Original Gig. Working from the comfort of home, low start-up cost, quick compensation, company support and personal growth can be much more attractive than many other gig opportunities out there.

Flexible Financial Freedom

How can we do that? Attracting new entrepreneurs means satisfying their expectations. Companies that offer flexible payment options and safe, secure, speedy payments—usually on the same day—provide a better experience; improve attrition rates; and become more attractive to those entrepreneurs looking for a side or full-time home business to join. Instant payments build loyalty, trust, belief and engagement. This, in turn, creates a desire to grow their businesses and the desire to increase income. It becomes a snowball effect.

Instant payments are key to unlocking the vast talent pool of the growing gig economy. The Future of Work: Insights into the 2023 Gig Economy Workforce study conducted by Dr. Robert A. Peterson and John T. Fleming and sponsored PayQuicker found that 83 percent of gig workers cite the importance of being paid immediately for performance when looking for a new gig. The importance of immediate pay for performance was endorsed by the gig workers surveyed, particularly women. A large percentage of the direct sales industry salesforce are female and being paid immediately for performance was stated as more important for female gig workers.

Instant Payment Supports Retention

When asked, “How do you primarily use the money you earn from your gig,” 49 percent of the gig workers surveyed in 2023 stated that they used their gig earnings to pay household bills. This percentage is a significant increase from 2020, when 37 percent of the gig workers surveyed stated that they used their gig earnings to pay household bills. This 12 percent increase for households indicates that independent contractors are relying on being paid on time to pay their bills. Getting instant access to commissions earned could create more loyalty to the brand and support retention of the salesforce.

Another important factor is security and fraud protection. This is extremely important to today’s salesforce. Having a secure, safe platform with secure commission accounts that ensures authentication of the user; has multifactor authentication; bank-grade security; and is compliant with regulations worldwide allows the field to feel safe with their earnings that are deposited into a personal account.

Additionally, a brand debit/credit card validates and helps to promote the entrepreneur’s business, while a reliable payment back office that tracks payments, expenses and even offers tax documents increases the loyalty, trust and belief of the entrepreneur.

Plus, the ability to purchase anywhere with personal branded debit cards (virtual and plastic) instantly, with the option of mobile wallets, is a competitive advantage in the marketplace. Multiple, flexible payment options are key as well. Instant access to a virtual card that they can start spending on immediately upon registration is also extremely important. They want to use their earnings immediately.

What Entrepreneurs Want—and Need

This is what today’s entrepreneur wants with their commissions. While faster payments are just one of many ways that the relationship between the field and the company becomes stronger, it IS known as one of the top items on their checklist when choosing a company to represent.

One last observation which I think is the most important is that those who have fast access to their earnings work harder and more frequently. People love getting paid for a job well done and seeing it in black and white. It helps as a motivator to work toward that $500 needed to pay bills, a mortgage, pay down debt, etc. This is the golden nugget, that intangible that makes a difference. There is no better satisfaction for everyone involved in this industry than seeing those goals achieved and success attained. I’m glad we are all a part of the equation to help their success in an ever-changing and complex economy.

In conclusion, direct selling organizations need a secure and compliant solution to deliver payouts to their salesforce with minimum overhead that caters to the diverse payment needs of all global demographics. Keeping sellers engaged in today’s competitive market is a top priority, while increasing internal efficiencies and reducing costs are key to business growth. Faster payments to your distributors mean they grow their business—and yours—faster.

With over 30 years of experience in the direct sales industry, Darla Brown is a seasoned executive who began her career as a distributor in the field and then moved into the corporate world of direct sales as an executive in sales, marketing and management. As Global Vice President of Customer Growth at PayQuicker, Darla supports new and existing clients with their global payout needs.

From the November 2023 issue of Direct Selling News magazine.

The post How to Get Ahead in the Race for Attracting Talent first appeared on Direct Selling News.

With the massive increase in participation from everyday people in online marketplaces such as Amazon and Walmart, direct sellers are scrambling to prevent the unauthorized sale of their products online.

Indeed, the problem snowballs each year as more and more end-user customers search out direct sales companies’ products at the best price. Experts estimate that companies are facing billions of dollars in losses as marketplaces continue to profit handsomely from the enablement of gray market sales.

As the number of product listings and sellers become overwhelming, many direct sellers are spending a fortune in time and money trying to remove them.

Unauthorized sellers battle with companies for consumer dollars, and customers look for the quickest, cheapest way to get the product on their doorstep. This severely impacts a direct seller’s bottom line and—most importantly—hurts the field, as they often cannot compete with the cut-rate prices found online.

So, What Exactly Are Unauthorized Sellers?

An unauthorized seller is any third party that is not associated with your company and resells your products without your permission. This could be an individual, a former distributor, a group of sellers or even an entire business. And it is easy for them to maintain some level of anonymity, at least on the consumer-facing side of online marketplaces.

The selling often takes place on Amazon, which does not discriminate between official and unofficial sellers of products. Selling on Amazon in the US does require users to meet some basic guidelines and provide information such as Tax ID and State Tax ID but does not generally prioritize filtering out unauthorized sellers. It’s somewhat of a free-for-all, which is the perfect way for these sellers to make a payday from your product.

Why Are Unauthorized Sellers Risky to Your Field?

Part of the reason these sellers are so prolific is because the asking price for the product is often marked lower than your company’s Minimum Advertised Price (MAP), which means that the “Buy Box”—the box denoting Amazon’s highest-rated item in the search category—could go to the unauthorized listing.

Being that a high percentage of shoppers look for the “Buy Box” when deciding between two sellers, this is a big deal. They are usurping customers from you; lowering the price of your product; and deterring potential buyers from your official listing, while hurting the sales efforts of your field and thus your bottom line.

Secondly, the unauthorized sellers are the ones responsible for the quality of product they resell, which is often below quality standards put in place by your company. This can lead to negative reviews that result in a drop in customer loyalty, support and consumer trust.

In the end, you could experience damage to your online reputation and pricing integrity; hurt your overall business; and negatively impact your field’s ability to enroll and sell.

There Are So Many Solutions, But Few Solve the Problem

As a result of the shift in consumer behavior, service firms have proposed solutions. One early solution-centered legal remedy: identifying sellers; tracing product sales; and ultimately sending legal demands to discourage them from reselling the company’s products.

Another solution threatened an unauthorized seller’s bread and butter—their online store—by using Amazon’s policies against them, including intellectual property and other brand protection mechanisms, while using an escalating series of threats to press them to drop the listings.

A more recent approach that has stopped these sales centers around an attempt to “out-Amazon” Amazon itself. It is the “if-you-can’t-beat-’em-join-’em” approach: build an official corporate store; advertise it heavily; and get the official site ranked on Amazon so you capture most of the sales.

However, this tactic competes with the field. Every sale that happens on Amazon is one that is not happening through distributors.

The whole point of the direct sales model is to build sales volume through a distributed workforce of independent representatives. Selling online is contrary to the model itself; it is the opposite of selling through a networked direct selling workforce.

Typically, fewer than 75 percent of listings and sellers end up being removed, and just one underpriced listing will compete with your field.

How Can a Company Stop Unauthorized Sellers?

The only way to stop the negative impact of unauthorized listings is to remove all of them. Period.

Since companies cannot trust entities such as Amazon to do so, self-advocacy is the most valuable tool. Explore solutions that are tailored with the direct selling industry in mind and have a proven track record of eliminating all unauthorized sellers.

Companies can then follow with legal avenues. However, cleaning up their unauthorized sales problems must take a proactive, multi-faceted approach.

1/ There will always be a small segment of customers who will buy on Amazon—the goal is to fulfill those sales without driving additional sales to Amazon.

2/ Remove all unauthorized sellers from the platform.

3/ Ensure all listings are at MAP or above (otherwise customers will buy at the lowest price).

4/ Be transparent with your field about your efforts to reduce unauthorized sales and push sales back to them.

5/ Engage experts with a proven track record of helping companies with these issues.

What If We Give the Money Made Online Back to the Field?

To assuage the frustration of distributors, companies whose strategy against unauthorized sellers competes with their field may elect to pay a portion of online sales to distributors through a bonus pool in their compensation plan—removing all unauthorized sellers and pushing sales back to distributors, where they belong. This will win the day with the field—showing distributors that the company did not “give in” to Amazon and instead fought to protect their businesses.

In short, direct sales companies expend substantial resources to build brand awareness and develop quality products for distributors to sell. Unauthorized sellers can destroy a company’s field success, perception of quality and even its overall reputation.

Travis WILSON heads up all business development initiatives for Momentum Factor. A finance executive in the direct sales industry since 2016, Travis brings a wealth of experience to his position at the firm. His industry expertise uniquely allows him to understand specific customer needs and provide compliance solutions.

From the October 2023 issue of Direct Selling News magazine.

The post Addressing the Unauthorized Seller Problem first appeared on Direct Selling News.

Discover how the right packaging solutions can elevate your brand.

By selling directly to your customers, you offer not only convenience but greater information and education. This way, your customers can purchase the right product(s) for their needs. Selling directly also allows you to create a deeper connection with your customers. And, every interaction is an opportunity to build a stronger relationship. The enhanced relationship can then lead to future sales and even recommendations or positive reviews for your products and brand—a win-win for you and your customers.

Of course, you’re not the only one vying for your customers’ attention. Direct selling has opened many new doors for customers and online shoppers alike. And with increased opportunity comes increased competition. So, standing out is more important now than ever before. There are just so many choices!

Getting noticed may start with having an inviting, friendly, efficient buying experience online. But it continues throughout every stage of the process, including every notification, every order, every package opened and every response to questions, issues or concerns.

Fortunately, you don’t have to go through this process alone.

The Power of Packaging

The right packaging allows you to demonstrate your company’s quality and personality with every delivery. It starts by visualizing your customer opening the box, which allows you to understand how to arrange the items for the most positive customer experience.

Product packaging can also further your branding and help you deliver inviting marketing materials. When done well, it can save your company costs, reduce waste and lower the return rate.

In other words, product packaging not only delivers a personal touch, it helps set you and your brand apart to give you a leg up on your competition.

The Power of Partnering

Partnering with the right fulfillment center puts you back in the driver’s seat and gives greater control over every package to provide:

• Full customization, so your customers will know the product is from you and your unique brand.
• Support with a dedicated client services manager who understands you, your business and your goals and can provide personal attention to help you optimize strategy; discover improvements; and even uncover cost savings.
• Greater control over how your brand is presented. For instance, branded packaging, marketing materials, custom inserts and add-ons can help you direct how your products are presented and unleash a powerful unboxing experience that leaves a lasting impression.
• Real-time visibility with state-of-the-art technology that’s easy to navigate so you can see and understand customer insights. Keeping a finger on the pulse of your customers allows you to better understand their needs and what it takes to best serve them.
• Flexibility, allowing you to quickly adjust to sales spikes (such as during successful promotions, relevant holidays, etc.) or other changes.
• Speed in shipping as the marketplace now sees anything longer than two days as “slow.” Look for companies with multiple warehouses and quick shipping speeds.

The Power of a Positive Customer Experience

Positive unboxing experiences are another way to keep your customers coming back for more—and spreading the word about your company, values and personality.

Finding the right fulfillment center should help you achieve your brand’s goal and help you:

• Delight your customers with an accurate and inviting unboxing for every order to drive brand loyalty.
• Decrease costs by keeping shipments as light and small as possible while maximizing the quality and feel. That way, your material and postage costs won’t eat away at your profit margin.
• Optimize shipping and logistics to save postage costs while enhancing delivery times.

Logistics isn’t just a cost center. It’s a powerful way to drive revenue and sales to cement your customer relationships and promote long-term—even lifelong—customer relationships.

In today’s business climate, ecommerce and direct selling are always evolving, and your fulfillment should too. Create a true partnership that constantly works to improve processes, efficiencies and packaging experiences.

IRENE SCHARMACK is an esteemed leader and CEO of QuickBox Fulfillment. With a wealth of industry experience spanning over 25 years, Irene’s strong operations background has been instrumental in establishing QuickBox as a trusted name in the fulfillment industry.

From the September 2023 issue of Direct Selling News magazine.

The post Building Brand Identity With Every Box first appeared on Direct Selling News.

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.

As much as the direct selling industry is in a state of change, some things are truly timeless. The importance of gathering in person is an integral part of the culture of practically every company in the channel. Making sure your event—whether it is an exotic incentive trip, regional conference or global convention—runs smoothly and creates indelible memories should be a top priority.

Once your company decides to launch your next event, a site visit can be a very helpful next step in the event planning process. A site visit not only allows you to choose the best location for the trip but also to find the right hotel to meet the demographic needs of your attendees.

Timing and Value

Depending on the timing of your event, this process can be done in one visit. Quite often in the direct sales industry, companies will decide on a location and hotel before even visiting—which is fine as long as you are working with an experienced incentive travel and event company that has actually been there and understands the wants and needs of your company and can help you navigate the inevitable bumps in the road you will encounter. If you are planning to go for a follow-up visit after the hotel contract is signed, make sure you include as least three free nights in the negotiation for that final site visit.

Four Important “Do”s for Your Site Visit

1/ Spend at least one night in each of your top choice hotels.

You will get a much better feel for the overall hotel experience as a guest than you would on a daytime walk through.

2/ Do a detailed walk through.

Include each potential event venue, your meeting agenda and on-site activities. This is the perfect time to run a test trial of your event.

3/ Look into off-site venues for an exclusive VIP dinner.

The right location is key for a successful VIP dinner, so spend time checking out several options, testing their menus, listening to musicians and meeting with the decor team.

4/ Trial the entire incentive trip from start to finish.

If golf is important for this trip, test out the transfer to the course, the greeting, club rentals and cart setup. If you are planning a dine-around, test the food quality and service at each of the restaurants. The more partners and vendors you are able to meet while in town, the better you are in the long run. A thorough site visit to trial an upcoming event can take 3-4 days to narrow down what feels right for your group. You’ll know it when you experience it—trust your gut!

Limit the Surprises

The value and prestige of incentive trips can’t be underestimated—your distributors work hard to earn it and understandably have high expectations for a one-of-a-kind experience. One of the most important things about planning and executing a successful incentive trip is mitigating potential surprises. A detailed and thorough site visit is your best bet to crafting a memorable event for you and for your distributors. Be fully prepared by walking through the entire trip to know where problems could arise and put a plan in place to solve them.

What is a FAM Trip?

A FAM trip stands for “familiarization trip” and is a benefit of being in the direct sales industry. FAMs are sponsored by travel suppliers, hotels, cruise lines, resorts, third-party travel companies and tourism boards. FAM trips are exclusive experiential trips for direct sales executives, incentive travel, conference or conventions decision makers, directors of events, event personnel and third-party travel companies.

Familiarization Trips are the best way to confidently determine the optimal location for your big event—nothing compares to actually experiencing the destination and resorts firsthand. Essentially a FAM trip takes you backstage to experience a location in hopes you return with your company travel incentive, conference or convention. A personal experience is better than any review you could ever read. Experience it, then book it.

Travel Like A Pro: The “Do”s and “Don’t”s of FAM Trips

Have a good time but remember what you’re there for.

Know as much as possible about the location and hotel products ahead of time. That way, it will make more sense and mean more when you experience it. Plus, you’ll be able to get additional information that could be valuable to you or your future event.

Arrive a few minutes early.

Punctuality is important so no other FAM attendees are waiting for you. In your room, requests or complaints about air conditioning, plumbing, etc., should be directed to the appropriate personnel in a diplomatic way, respecting the partnership between you and FAM sponsors.

Use good sense with the people you meet.

You can tell people that you’re a part of the travel industry—but don’t let other guests know that you’re on a FAM trip. Be sociable but always use discretion.

Engage in the kind of travel experience that your attendees will experience.

Get an education but think from the standpoint of your potential event attendees.

Take the time to say “thank you.”

Everyone appreciates gratitude when they’ve gone out of their way. Rarely will things be 100 percent to your liking, but it has still been a new travel experience for you. Remember to acknowledge the vendor’s generosity through a verbal “thank you” to staff and crew who have served you well. Don’t forget to thank your housekeeping staff with tips.

Philip Cochrane has been in the direct selling industry for over 20 years and is the Co-Founder and President of iCentiviz. iCentiviz delivers over 100 years of combined industry experiences with a deep-rooted passion in assisting and supporting direct selling companies’ growth through their travel incentives, conferences and conventions.

The post The Importance of a Site Visit first appeared on Direct Selling News.

ESTABLISHING A NEED is critical for vendors in the direct selling industry. Potential customers frequently put up their defenses, thinking they don’t need your solution. Maybe their assumptions are due to a misunderstanding or a fear of the unknown. This is where the education of your prospective audience comes in. This process builds value, relationships and—most importantly—TRUST.

To be effective in your pitch, you must believe in the solution you are providing. Which is why—as the EVP of Sales at Fortress Trust—I can be wholeheartedly excited and enthusiastic about what we have to offer. I believe and trust in the solution we can provide and the value it offers to the channel. My team’s successful approach has seen:

• An increase in the recruitment of consultants, with a reduction in turnover rates.
• An increase in the lifetime revenue for consultants as well as the parent company.
• An increase in community engagement & social selling.
• The creation of new revenue streams for consultants and the parent company.

Having spent many years in sales, especially in the direct selling industry, I’ve learned that trust and relationships are imperative. I’ve worked with many companies who have never considered using our technology. However, once I have been able to explain its value, they become far more receptive to the message.

Here are four of my best tips for making the same thing happen at your company.

1/ Be Friendly, Be Memorable and Provide Value

When meeting a prospective customer, the goal is to build a relationship with that individual. Ask non-work-related questions and—more importantly—listen, reflect and understand. Invest the time in getting to know them as a whole person. Seeing a prospect as a person—not just a number—is a crucial step in developing TRUST.

2/ Debunk Common Myths

The chances are, potential customers need some clarification about what you’re selling. For example, Fortress Trust uses Web3 blockchain technology. However, the lack of regulation in the industry has led to some high-profile disasters, most recently FTX and Celsius, where customers have lost their money for good.

The lack of governance and protection for customers against fraudsters potentially driven by greed is a major pain point. However, our company is different—we operate by legal rules that are different from crypto exchanges. It’s important that we clearly and effectively communicate that to our prospects to alleviate any hesitations they might have.

Fortress Trust is a fully regulated company in the United States, overseen by a former banking commissioner, legal experts and trusted custodians. Crypto exchanges currently do not have similar regulation laws. Companies like ours are bound under more intense laws and scrutiny about how we use customers’ funds, similar to the banking industry. When speaking with prospects, we are responsible for ensuring they understand these important differences and regulations and how they can provide crucial peace of mind, eliminating any barriers to purchase.

3/ Use Personalization to Your Advantage

When trying to reach a potential customer, it’s useful to think about ways to make each person feel unique and special. For example, it may be helpful to come up with several use cases of your product that are directly relevant to a prospect’s needs. It’s also advisable to go the extra mile and dig up relevant use cases for your prospective customer.

Preparing unique and engaging sales discussions in advance ensures that your potential customers understand your product and its value. After spending the extra time personalizing a pitch to each potential customer, conversions and drive sales will increase. Customers need and want to feel special. Take steps to ensure that they can recognize that you truly see them and understand their problems and how you can help them. For example, establish a higher return on investment (ROI) than the investment required in your product/solution.

4/ Become an Events Host or Participant

When selling a product or service, getting customers emotionally involved is important. A great way to generate excitement is by hosting or attending an event, conference or webinar. These sorts of discussions can be informational and celebratory. Events may discuss future trends, exciting innovations or how to create interesting collaborations in any industry space. A networking environment creates a great space for promoting your product or service. You’ll generate excitement about your business and attract potential customers by meeting sales prospects in an environment that welcomes those kinds of interactions.

Your target market likely attends many conferences, events and webinars. Every industry has its own specialty of meeting places where they can coordinate the best ideas and connect with others. For example, Fortress Trust found great success when we assisted with hosting a VIP after-hours event at Money 2020 in Las Vegas with 450 attendees via an NFT (Non-Fungible Token) invite only. This generated many new sales leads for us as well as substantial data on the attendees. Therefore, it’s important to always appreciate the power of a good event to drum up business.

The Power of Trust

Trust is essential in any relationship. When you’re able to educate your potential customers about why your product is valuable and how it can benefit them, you’re much more likely to build trust with them. Remember that what potential customers really want is information. By educating your potential customers about how you can help with their specific problems, you’re showing that you understand their needs. Only after you’ve taken the time to educate them should you attempt to make a sale.

Focusing on education first will make you much more likely to gain their trust and close more sales. So, next time you’re approaching a potential customer, keep education at the forefront of your mind, and you’ll be sure to find success.

Ian Wisbey is the Executive Vice President of Sales at Fortress Trust with 25+ years of experience in proven sales and customer engagement. Fortress Trust is an industry leader in compliant financial infrastructure and easy ePayments.

From the January/February 2023 issue of Direct Selling News magazine.

The post Four Easy Ways to Engage, Inform and Educate Potential Clients first appeared on Direct Selling News.

Meanwhile, the direct selling industry itself has migrated from in-person sales meetings and events toward more online and social media-based marketing. This massive change has brought significant challenges and increased risks to direct sales companies, especially with regard to brand and regulatory liability. As field members increasingly use the internet to promote their businesses, companies invite more risk from uncontrolled or unmonitored claims by the field—often to disastrous effect.

As a result, compliance officers continue to play the world’s largest game of whack-a-mole; retaining oversize compliance departments charged with constant Google searching in hope of finding anything afoul of corporate and legal guidelines. It is an expensive process, requiring immense effort and resources to be able to “catch” and review all online mentions. Even so, the tools often employed by companies are not capable of finding the real issues lurking in dark and distant corners of the internet.

Automated Compliance Monitoring

So, what is the answer? It’s three words: Automated Compliance Monitoring. These systems improve the largely manual compliance processes previously used to comply with government regulations and protect brands. With automated monitoring, a company’s internal team can shift from the manual and low-skill work into higher level strategy, policy development and field communications, which are the hallmark and strength of the best compliance professionals.

By enabling this approach, sophisticated tools are used to find information posted online in many different social channels (such as Facebook, Instagram, Twitter, LinkedIn, blogs, videos and more) as well as basic search results that are normally identified in the course of daily business. As a result, many items and updates posted outside of compliance guidelines can be dealt with immediately, whether using pre-approved “in-compliance” resolutions or directing
mid- to high-level issues to the correct compliance department person.

The Internet is a Big Place

It seems simple enough, but too often companies can underestimate the scope of monitoring the entire internet. Hits from the dozens of online and social media sites means potentially millions of data points that must be culled and converted into violations for the team to follow up. Every violation generates a case file; many case files generate an investigation; and ultimately outreach to the field member in order to resolve the case. Each case can mean a dozen hours invested in a resolution, which clearly shows how manual processing of compliance management is cost prohibitive.

Simply put, direct selling companies are vulnerable in the internet age. Many compliance policy violations go undetected and unenforced due to the overwhelming difficulty tracking all independent representative activities on the internet. Rogue violators can expose a company to public embarrassment, litigation and regulatory action.

Fertile Hunting Grounds for Law Enforcement

The internet and social media provide source material for law enforcement and consumer advocacy groups. An investigator may not receive many complaints to support an ongoing inquiry, but if he or she discovers dozens of YouTube videos about “how to become a millionaire” with your company, it may raise a red flag and spur further investigation.

Adequate monitoring requires more sophistication and resources than many companies can afford. Internal staff are often poorly trained in direct selling compliance guidelines and federal laws, which means they may overlook some problems and misunderstand others, resulting in serious consequences. Without the proper tools, staff can waste time and money while potentially exposing the company to future liability.

Companies should look for ways to identify, select and enforce comprehensive company policies while doing it in an affordable manner. Automated Compliance Monitoring can provide such an answer by ensuring that everybody within an organization complies with corporate policies, governing body guidelines and federal laws while also providing documentation of policy enforcement to regulators.

Keys to an Effective Compliance Monitoring Program

Automated Compliance Monitoring easily identifies, scores and flags violations across most internet properties and social media sites. To be effective, the system should capture any problematic online activity that could harm an organization’s brand by seeking out any online mention through the use a search process that far surpasses the depth of a regular search engine. And when the system encounters a mid- to low-level compliance issue, it should be responded to immediately and appropriately cataloged for easy review, follow-up, investigation and enforcement—providing a clear audit trail. A “triage” process should also be implemented to ensure that the riskiest violations are immediately expedited to a company’s compliance team for follow-up. Additionally, field representatives should be trained in best practices by seizing opportunities to check potential posts for improper claims before they even go public via mobile app and other social posting platforms.

Overall, this technology program should not only significantly reduce compliance costs, but the web-combing features should increase search efficacy. The training provided through this system should also promote professional, thorough and effective communication between internal staff and field members. While a trained field salesforce promotes preemptive compliance in order to reduce overall exposure, an experienced monitoring team can provide informed recommendations for alerting representatives to concerns working within a company’s existing compliance structure, and demonstrate the company’s dedication to best practices in compliance.

With the above facets of a solid compliance program in place, should a regulator or other interested party inquire into a company’s practices, a company can state that it uses the best available compliance services and technology.

A published author, accomplished technology consultant and sought-after speaker on topics of digital impact and direct selling, Jonathan Gilliam is the Founder & CEO of Momentum Factor, the leading provider of online compliance monitoring, online reputation management, and digital risk mitigation strategies for direct sellers.

The post As the Regulatory Environment Tightens, Direct Sellers Strive to Automate Compliance first appeared on Direct Selling News.

The hyper-focus that many leading brands have on both gaining and maintaining a customer is astounding. They know what the cost is to gain, retain and lose a customer. They know how to convert their audiences into lifelong shoppers or distributors, scrutinizing and optimizing shopper experiences for long-term success.

Here are some key learning points on the customer purchase journey.

1 / Frictionless Payments

Why not go check-out free? In EMEA, linking up with a large retail technology partner has enabled just that. After tapping in with a credit card, sensors detect what you put in your cart—and what you put back—and then you simply walk out when you are done. No lines, no checkout, no time wasted.

In both the online and offline environment, anything that causes friction during that all-important payment journey can increase cart abandonment. Innovative companies may benefit from viewing their payment processor as a revenue generating partner versus a cost center. What if you could decrease cart abandonment and increase sales? What is a 10-15 percent increase in sales worth to your company?

Digital wallets and innovative payment solutions focused on speed and convenience—such as the modern checkout Skipify—are disrupting what shoppers typically expect the checkout process to be. Paying with one click, wherever you are and whatever you’re purchasing, plus having your information stored for accelerated checkout in the future, may soon be the norm.

Whilst new payment technologies speed up the purchasing journey, they also help keep shoppers and companies safe. Biometric checkout (fingerprint and facial recognition) decreases fraud, increases acceptance rates and simplifies the customer checkout experience. You simply look at or touch your device, and you’ve paid.

The modern shopper increasingly expects a simple payments experience, where losing your card and needing to update it across services when it expires is a thing of the past.

2 / Declined Customer Transactions

Declined customer transactions are lost customers and distributors. Do you know what your lost customer and distributor cost is?

More than $443 billion worth of orders are falsely declined every year due to fear of fraud, yet only one percent of orders are actually fraud.

Each card issuing bank has certain rules to dictate which transactions they accept or decline. Issuing banks are much stricter on eCom transactions versus card-present transactions. Knowing how to present key information, the appropriate networks, exception rules and track record are all key to improving acceptance rates.

Some payment providers have specific authorization maximization products that only charge for the service when they successfully improve acceptance rates. I have seen direct selling companies increase their acceptance rate by seven percent just by using the right payment partner. What would a seven percent increase in your payment acceptance do for your business?

Of course, it is still important to identify fraudulent transactions when they do arise by enabling the right fraud prevention tools and measures. Merchants pay on average $3.36 per lost fraud dollar. Credit card fraud occurrences are up 161 percent since 2015. Online fraud is set to exceed $200 billion between 2020 and 2024.

3 / Localization

When customers are not able to use their preferred currency or payment types, they may not complete the transaction and could take their business elsewhere. Payment habits continue to shift away from cash and credit cards towards digital wallets and other alternative payment methods like buy now, pay later.

Digital wallets comprised 48.6 percent of eCommerce transaction value globally in 2021, or just over US $2.6 trillion. Wallets are projected to rise to 52.5 percent of transaction value by 2025. Some shoppers are dissuaded from purchasing cross-border because of hidden fees and customs charges, so transparency and up-front costs can improve confidence. Even better, make the international shopping experience feel domestic and ensure costs are kept down, shipping is fast, and returns are just as easy.

For markets where you have a high volume of established sales with a local entity, you may want to set up a local merchant account with local processing to minimize foreign exchange expense and increase your payment acceptance rates. Find out which markets your payment partner has local licenses for to set up a merchant account for you. This can eliminate additional contracting entities and costly technical integrations that must be constantly maintained.

Driving Growth and Retention

In my short time at Worldpay from FIS, I’ve learned the future of retail success lies in a balancing act between key priorities. Many leading brands are great at making it easy to buy their product or service, and through select partnerships and integrations achieve speed, security and convenience for the customer, whilst also optimizing their revenue and limiting risk.

The very definition of a ‘seamless’ service is that the shopper doesn’t know which components were brought together to enable them to sit back and relax, knowing their item is on its way without a hitch. 

Michael McClellan has been in the direct selling industry for 20+ years and oversees the direct selling vertical market for Worldpay from FIS. Worldpay is the largest payment processor in the world.

From the November 2022 issue of Direct Selling News magazine.

The post 3 Lessons for Direct Sellers from Top Global Brands first appeared on Direct Selling News.

1 / An Evolving Cross-Border eCommerce Transportation Market

The COVID-19 pandemic battered international transportation markets in cross-border eCommerce. Early in 2020, global passenger air travel and flight availability plummeted, reducing global air transportation capacity by over 90 percent. By April 2020, global freight demand had dropped by as much as 25 percent compared to 2019. However, by the end of 2020, global freight demand returned to 2019 levels. At the final mile delivery level, couriers, contractors and postal operators were plagued with rolling lockdowns, facility closures and a lack of staffing.

This confluence of events created mass global disruption and cost increases. Airlines pushed freight or stopped taking bookings in favor of higher yield shipments. Final mile carriers often couldn’t retrieve freight or effectively deliver it because of staffing shortages or lockdowns. Many abandoned their service SLAs altogether. As airlines saw increased demand on reduced capacity, they dramatically increased prices. And as carriers paid more for labor, they passed along those cost increases to customers.

Today, as the world adapts to an endemic COVID, cross-border transportation is in a unique position. Some of the same problems persist. For example, major couriers and warehouse providers still struggle to staff their operations effectively. New challenges such as fuel prices and reduced cargo capacity due to the Russian conflict have also emerged.

However, there are many reasons to be bullish on cross-border transportation performance. Globally, the Global Access Network shows a dramatic reduction in transit times from the peak of the pandemic and remains only very slightly elevated over 2019 performance.

Major couriers are reporting a slight downtick in package volumes, which may help decelerate price increases. Global passenger traffic should return to pre-pandemic levels by 2024 and continue to increase moving forward. Lastly, over the last two years, billions of dollars have been invested in new companies, technologies, and networks to improve efficiency and capacity.

2 / Decreased Consumer Spending Power

Most international consumer’s spending power is being affected, in some unique way, by a stronger U.S. dollar, country-specific inflation or both. As of July 2022, the world’s four most traded currencies, outside of the USD: EUR, JPY, GBP and AUD, have devalued against the USD by between 4-25 percent with an average drop of 14 percent year-over-year. If we look at some other key direct sales markets—Korea, Taiwan, Canada and Malaysia—we’ll find, in some cases less pronounced, but similar recent FX trends.

On the inflation front, only six of the G20 are reporting annualized inflation rates under 6 percent. Outside of the G20, many key direct sales markets are reporting high inflation rates. For example, Colombia, Thailand and Peru are reporting annualized inflation rates of 9.67 percent, 7.66 percent and 8.81 percent respectively. It’s reasonable to say that outside of a few notable exceptions, international consumers are feeling the pain.

In the face of these headwinds, the best performing companies are prioritizing three vital things. First, these companies have a robust pricing strategy. They are monitoring changes to their businesses and making market-specific price adjustments to optimized market performance. Second, many of the most successful companies are diversifying their sales channels while nurturing their current structure. Many are adding revenues from D2C eCommerce channels and new affiliate programs while continuing to support the sales leaders that still drive much of their businesses. Lastly, the most successful companies are focusing on product. They are innovating to ensure that their products stay essential as global consumers are increasingly forced to make purchase tradeoffs.

3 / Stronger Push for NFR

Less than 25 percent of global direct sales revenues are transacted in the United States. Additionally, the top 15 fastest growing direct sales markets, as measured by a 3-year CARG, are international. Simply put, global expansion is the long-term life blood for most direct sales companies. However, the last two years have shown some potential flaws in a traditional, on-the-ground only approach to expansion and growth. As the pandemic wore on, we saw a dramatic increase in companies turning to NFR to add resiliency to supply chains, test new markets or be NFR-first operationally.

At Global Access, we take some companies on the ground (opening local warehouses in country, guiding the product registration process, etc.). For other clients, we support cross-border shipments or NFR. During the pandemic, the most successful companies we worked with had at least some NFR operations. They were able to react more quickly to changes in customer preferences and buying habits, replenish inventories more quickly and cross source product.

The pandemic also pushed many traditional eCommerce brands to expand via an NFR or cross-border model. Cross-border is growing at double the pace of domestic eCommerce and global transportation networks, technologies and governments have rushed to adapt to the acceleration. It has never been easier to transact with, ship to or retain international consumers.

However, from our perspective there are a few important, necessary steps to ensure long-term NFR success. First, companies need to ensure they are compliant with all personal import and compliance laws. Second, the most successful companies provide a frictionless shopping and payment experience. Lastly, effective organizations find ways to maintain the customer-brand relationship to enhance customer LTV.

Tanner Carlson currently serves as the General Manager of Global Access. He is passionate about connecting the world’s business to the world’s consumers. Throughout his career, he has built, implemented, and maintained global software and transportation solutions and expansion strategies that support businesses of all sizes.

From the September 2022 issue of Direct Selling News magazine.

The post Three Key Challenges Impacting Global Commerce first appeared on Direct Selling News.