MLM Weekly News: Industry Executives Share Insights, Expectations for 2013 And Much More

Over the last few weeks we have seen, heard and read all kinds of prespectives on the Direct Selling Industry, specially the network markting community. Now several top MLM executives speak out to share their insights.

The Association of Network Marketing Professionals 2013 International Convention

 

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As direct selling companies set into motion their strategies for the year ahead, DSA reached out to a variety of industry executives who shared their thoughts on what they anticipate for the direct sales channel in 2013. Below, you will find a collection of insights from executives who participated in our outlook piece last year—Lori Bush (Rodan + Fields Dermatologists), AJ Deeds (Loving Works, LLC) and Cindy Juncaj (Demarle at Home)—as well as a new contributor, Richard Wright (AdvoCare). (Read The Full Report Click Here)

LegalPerspective

Association Files Amicus Brief on Behalf of Sales Channel

DSA recently filed an amicus brief in the matter of the Federal Trade Commission v. BurnLounge on appeal to the Ninth Circuit Court of Appeals. In this case, a district court had found that BurnLounge was operating a pyramid scheme, and at the end of December BurnLounge appealed the decision to the Ninth Circuit.

An amicus brief, otherwise known as a “friend of the court” brief, is filed by someone who is not a party to the case, but has information that bears on the case. The brief allows a way for a non-party to address issues that could have an impact beyond the parties directly involved in the case.

DSA submitted a brief as a neutral party, not supporting the position of BurnLounge or the Federal Trade Commission. The purpose of the brief was to educate the Court regarding the definition of a pyramid scheme and how that definition should be evaluated when determining whether a company is operating a pyramid scheme or a legitimate business. In addition, the brief discusses the important and legitimate role personal or internal consumption plays in the direct selling industry.

The Federal Trade Commission’s reply brief will be due to the Court at the end of January. Oral arguments will be scheduled in the next few months. DSA will continue to monitor the case and report to members regarding its progress. ( Click To Review DSA Brief )

Compelling Creations
Compelling Creations

In 1998, guided by her love for connecting with others through her inspirational jewelry, Jill Felts launched Compelling Creations, a faith-based fashion jewelry business approved for membership by the DSA Board of Directors in December 2012. Over the years, the jewelry line has turned into more than a business: “It has become a ministry that speaks to all ages,” Jill said.

While the company logo—a “returning boomerang” to represent the philosophy, “For it is in giving that we receive”—signifies Compelling Creation’s mission, the company’s passion for giving back goes beyond the inspirational messages depicted throughout its product line.

“Compelling Creations gives back to non-profits that provide healing to others,” Jill said. “Since 2011, there have been eleven wells built around the globe through Operation Blessing International from customers wearing and sharing our ‘Meet Me at the Well’ charm. The newest cause the company supports is bringing awareness, prevention and healing programs for survivors of child sex abuse by supporting Voice Today through the sale of the ‘Break Free’ pendant.”

With more than 180 consultants in the U.S., and many more inquiries processed on a daily basis, the company traces its roots to direct selling back to 2007 when women began to ask about selling Compelling Creations jewelry in their circles of influence.

In 2009 Jill learned about the direct selling model. “The model was perfectly aligned with what we were all about: building relationships,” she said.

Originally the company sold online and through brick-and-mortar gift shops but, by 2010, Compelling Creations’ entire business model changed to party plan. Today, consultants assist customers with purchasing multiple pieces of jewelry for both small and large groups of family, friends and colleagues to convey a message of comfort or celebration.

“There is a ripple effect from the person who wears our jewelry to the person who reads the message,” Jill said. “People connect with the message and want to pass it on to others.”

Network Marketing Professionals In The News

Rick Heath has been appointed to Executive Vice President of Regal Ware.

Herbert Ho, Ph.D., J.D., long-time Asian direct selling expert and independent consultant, has authored a monograph on direct selling in China. Herbert is a recognized expert on the intricacies of establishing and carrying out direct selling in China. Click here to view a copy of this resource.

Darlene Santore has been named Chief Performance Officer of pending memberOrigami Owl.

Olena Sergeeva has been appointed General Director of Mannatech’s Ukraine operations.

After five years with DSA, Sonya Cooper-Turner, Speaker & Supplier Membership Coordinator, is moving on to pursue other opportunities. DSA would like to wish Sonya much success in her future endeavors.

Direct Selling Companies In The News

Amway awarded a $50,000 scholarship to the new Miss America 2013, Mallory Hagan. More than $300,000 in scholarship funding was awarded to the other Miss America contestants on Jan. 12, 2013, during the Miss America Competition.

Avon has announced plans to lay off 1,500 employees around the world and end operations in South Korea and Vietnam. The company will also shut down more than 10 branches in China to cut its direct selling business there and encourage opening franchised stores.

Hy Cite (Royal Prestige) recently announced it has completed a recapitalization deal with Palladium Equity Partners. Hy Cite will continue to be led by members of its founding family—Erik Johnson, Chairman and Chief Executive Officer, and Peter Johnson, Jr., Chief Operating Officer—as well as by its current management team. David Perezand Luis Zaldivar of Palladium will join Hy Cite’s Board of Directors.

Longaberger has signed a letter of intent to be acquired by Computer Vision Systems Laboratories (CVSL). CVSL will gain controlling voting interest in the direct selling company. Tami Longaberger joined CVSL’s board of directors in December 2012 and will continue as CEO of Longaberger. The company’s headquarters and executives will remain in its famous basket building in Newark, Ohio.

USANA will be the title sponsor of an FIS World Cup event taking place Jan. 17-19, 2013, in Lake Placid, N.Y. The three-day competition will mark the fourth World Cup tournament USANA has sponsored since partnering with the U.S. Ski and Snowboard Association in 2011, and the second time it has sponsored the Lake Placid competition.

Your Inspiration at Home announced it has opened its first base of operations in the U.S. The Australian company now has an office in St. Cloud, Minn.

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