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Elevating direct selling through leadership at the speed of trust

Bio: With a 30-year career, Garrett McGrath is a leader who has built field organizations of 200,000+ distributors and customers in 21 countries together with his wife, Sylvia, and served as master distributors and special advisors. In addition to being a keynote speaker, leadership coach and mentor, McGrath contributes to industry-wide conferences, publications, and boards. Recently he led the corporate team of The Happy Co., a publicly-traded network marketing company, helping it grow to $130+ million in annual sales, and serving as its CEO/president. Since 2012, he has also served as president of the nonprofit Association of Network Marketing Professionals (ANMP).

SSN: Tell me about your work with the ANMP.

GM: The Association of Network Marketing Professionals (ANMP.com) is a grassroots 501(C)(6) organization, founded in 2004. As a nonprofit, the ANMP is the only professional association that includes all three stakeholder groups within direct selling together: the independent distributors in the field; the company CEOs, executives, and founders; and the suppliers, supporters, and advocates serving the channel.

Companies are recognized for environmental initiatives, while regulators address green marketing claims

By:  SSN Staff

Amid an ongoing transition toward sustainability and concerns about environmental impact to the planet, the direct selling business channel is gearing up for a transformative year ahead. A multitude of companies are ramping up their eco-friendly practices, designing more environmentally safe products, and reevaluating their supply chains to reduce their carbon footprint as well as ensure compliance with U.S. environmental marketing guides and the evolving green laws in Europe.

This proactive approach aligns with the rising consumer demand for sustainable products and with other companies that have embraced environmental stewardship. With an increasing awareness of environmental issues, consumers are actively seeking products and services that leave a smaller ecological footprint. In response to this demand, direct sellers are placing sustainability at the forefront of their business models, driving innovation and promoting eco-conscious consumer choices.

Company founders are reaching an even wider audience through authorship

“John Maxwell told me, ‘Your wisdom and experience are only viable for the audience that gets to come hear you. But if you put it in writing, you can add value to the lives of people who will never meet you.” —Logan Stout, Founder and Chairman, IDLife

Impact, inspiration, and legacy are driving forces in the direct selling channel—not just for field members but often for company founders, executives, and employees. In fact, what leaders do can be measured in thousands and even tens of thousands of people impacted.

However, there is a “next level,” and noted leadership expert and author John Maxwell pointed it out in a conversation with IDLife’s founder and chairman, Logan Stout. “Your wisdom and experience are only viable for the audience that gets to come hear you. But if you put it in writing, you can add value to the lives of people who will never meet you.”

Interactive videos boost engagement and sales in e-commerce

By:  John Lietsch, Guest Contributor

In today’s digital age, video has become one of the most powerful tools for marketing and advertising. With the rise of e-commerce, brands are looking for new ways to make their videos more engaging and interactive, and shoppable videos have emerged as a popular, effective, and profitable solution. But what exactly are shoppable videos, and how can they help brands and retailers drive sales?

What Are Shoppable Videos?

How to Fight the Amazon Beast

January 2023 Issue – By Travis Wilson

With the massive increase in participation from everyday people in online marketplaces such as Amazon and Walmart, direct sellers are scrambling to prevent the erosion of their brands, lowering of price expectations, and reputational risk that comes from the unauthorized sale of their products online. Companies are facing billions of dollars in losses as marketplaces continue to profit from the enablement of gray market sales.

Direct sales companies are feeling the pinch across all categories, and are scrambling to stop these sellers and remove listings. Unauthorized sellers battle with companies for consumer dollars, and customers look for the least expensive way to get the product they want on their doorstep with free two-day shipping. This severely impacts a direct seller’s bottom line and hurts the field, as they often cannot compete with the cut-rate prices found online.

Strategic shifts and new product lines mark the channel’s response to economic uncertainties

By:  Dave Rauf

Herbalife

Herbalife’s third-quarter profit fell roughly 48% as sales in the U.S. and China continue to slump.

The direct selling giant reported a profit of $42.8 million for the quarter on total sales of $1.3 billion. Herbalife’s revenue for the third-quarter was flat compared to the same time a year ago. Total sales declined 1.5% from last year when calculated on a constant currency basis.

Moving forward, Herbalife CEO Michael Johnson said returning to growth in the U.S. and China — two of the company’s most important markets — will be “our primary focus.” 

An Herbalife regional team is launching new initiatives to drive recruitment, stimulate engagement, improve productivity and support the company’s return to sales growth in the U.S.

January Headlines

US Labor Department Proposes New Independent Contractor Rule

President Biden’s Department of Labor (DOL) is finalizing a new rule under the Fair Labor Standards Act to redefine independent contractor classification, aiming for completion in the second half of 2023. This follows extensive public feedback, including over 55,000 comments since October 2022. The proposal revisits the Economic Realities Test, introduced by the previous administration, to determine employee versus contractor status. The DOL seeks a more holistic approach, in contrast to the 2021 rule’s focus on key factors. Groups like the Direct Selling Association and the U.S. Chamber of Commerce, as well as Republican legislators, have raised concerns, citing potential confusion and impact on small businesses and independent workers.

FTC Issues Revised Compliance Guidance for Health Products