DSA 2012 Communications Conference Highlights by Direct Selling Association

“Adaptability is key in order to stay ahead of the curve.” Xanthie Drankus Rodan + Fields

“It’s all about relationship marketing!” Neal Chamberlain Send Out Cards

If you’re not being authentic, you’re not being anything.” Tori Molnar Utoria

2012

Conference Highlights

Today’s marketplace highlights how much social media and smartphone technology has drastically impacted the way companies connect with consumers. At a time when consumers absorb so much information online, it is critical that direct sellers spread the word about all our industry has to offer. After all, we have all witnessed firsthand how the Internet enables anyone to broadcast their thoughts and perspectives to a limitless audience. We can and must work together across a variety of innovative platforms to educate others about who we are and what we stand for. Each year, I look forward to DSA’s communications seminar for exactly this reason. Last year, attendees tackled a host of topics impacting the way direct sellers communicate with both consumers and distributors. Perhaps most inspiring about the gathering was the way in which these industry leaders openly brainstormed communications strategies they could employ to inform the general public about their respective companies, as well as the tremendous potential our entire industry has to transform people’s lives. As we prepare for the 2013 Be Connected Conference this December, I am excited about the opportunities this event will afford you and your colleagues to share openly your thoughts with one another again. Enclosed in this brochure are the highlights of last year’s event. Take a moment to review everything your peers experienced, and then reserve space on your calendar to make sure you can be a part of it this year. Industry executives will gather in Washington, D.C., Dec. 4-6, to engage with each other, learn what new strategies are at work in the marketplace and get geared up for 2013. Won’t you join us? I hope we’ll see you there!

Joseph N. Mariano President Direct Selling Association

More than 330 representatives of the direct selling industry gathered at the Terranea Resort in Los Angeles, Dec. 5-7, 2012, for DSA’s highly anticipated 2012 Communications & Marketing Conference.

Focusing on Relationships

Demonstrating firsthand how information-sharing, transparency and relationshipbuilding remain defining characteristics fundamental to the direct selling industry, executives from a wide range of companies and backgrounds exchanged ideas and lessons learned throughout the three-day event. “As our nation continues to feel the effects of the economic downturn, it is now more critical than ever that direct sellers everywhere spread the word about all that our industry has to offer,” said DSA President Joe Mariano in his opening remarks. “One of the aspects of this industry that defines us is our social nature. This unique and transformative characteristic is not only seen in the field, but it becomes ever more apparent during events such as these in which direct selling executives openly share insights, lessons learned and keys to success with fellow industry leaders who might otherwise be deemed competitors, rather than colleagues.” The jam-packed conference kicked off Wednesday night with a Hollywood Glam Reception—complete with paparazzi, red carpet and billboards displaying the nominees for the first-ever DSA Digital Media Awards. Thursday morning’s agenda kicked off with nationally recognized marketing expert Kelly McDonald, who dazzled conference-goers with a captivating presentation about how changing demographics will impact direct selling businesses in the days and years ahead. In addition to Kelly, attendees heard from two additional keynote speakers throughout the event—teenage President of Utoria, Tori Molnar, and “The Branding Diva” herself, Karen Post. Conference-goers were also able to take part in more than a dozen workshops and gained a great deal of insight from the Chief Marketing Officer Panel. “A theme I found throughout the conference was that it’s all about relationship marketing,” said attendee Neal Chamberlain, Marketing Manager for Send Out Cards. “It’s not about simply selling your product or your company. What you really need to do is focus on building relationships. It might sound rudimentary, but how often do we forget to listen to our distributors and to our customers? How often do we stop to really think about who our audience is?” Building on the sense of community and relationship-building that so many executives addressed throughout the event, conference-goers closed out their first evening by taking part in the DSA Holiday Reception & Direct Selling Education Foundation (DSEF) Pack-a-Present event. Industry leaders generously gave gifts ranging from stuffed animals and board games to clothing and monetary donations to benefit the South Bay chapter of the Boys & Girls Club.

Empowering Millions

The next day, attendees participated in a tightly scheduled half-day, which featured a Chief Marketing Officers Panel and the naming of the first-ever DSA Digital Media Award recipients. Throughout the conference, participants brainstormed communications and marketing strategies for 2013 and swapped ideas on how to spread the word about all the industry has to offer.

“While our contributions to the national economy and our competitiveness in the market have attracted attention from the media and the investment community, what is perhaps most important to our prolonged success is that we continue to share the countless narratives that demonstrate how we, as an industry, empower millions to achieve one common dream of business ownership,” Joe said. “We’re beginning to see how new demographics are redefining what it means to be the direct seller of tomorrow. Today, more than 20 percent of direct sellers are male— compared with just over 13 percent less than five years ago. In a world where parents are juggling the need for income with the need for personal time, full-time employees are moonlighting in efforts to earn extra money outside the office and retirees are finding it difficult to get by without additional income, we’re also seeing a new age group emerge as direct sellers in greater numbers than ever before—Generation Y.”

Keynotes that Connected DSA welcomed three impeccable keynote speakers to the 2012 Communications & Marketing Conference: marketing expert Kelly McDonald, teen CEO Tori Molnar and “The Branding Diva” Karen Post.

Kelly McDonald

On Thursday, Dec. 6, Kelly McDonald wowed conferencegoers with a captivating presentation about how changing demographics will impact direct selling businesses in the months and years ahead.

“Women now comprise more than 50 percent of the workforce population for the first time ever,” Kelly said. “What does this mean for your company? Women place a lot of strong trust in other women—so, one of the things you can do as marketing professionals that doesn’t cost a dime is load up your brochures and social media sites with testimonials from women about your company.”

Kelly McDonald

Kelly not only broke down key findings from a number of national demographic surveys, but she also illustrated what the latest figures mean for direct selling in particular. One key demographic she addressed was Generation Y.

“Gen Y expects a demonstrated commitment to diversity,” she said. “They have grown up in diversity all their lives... For Gen Y, freedom is the best award. Study after study has shown that Gen Y will actually sacrifice a bit of salary in order to have freedom and flexibility.

A Voice for Gen Y

“Marketing has to adapt to today’s changing demographics,” she added. “In today’s world, social is everything...Your communities are changing, your customers are changing, your workforce is changing.”

Tori Molnar Later that afternoon, to demonstrate the importance of Gen Y, Tori Molnar, President of Utoria and a Gen-Yer herself, shared her own insights and key findings on how Millennials play a crucial role in the growth of a direct selling business.

Tori Molnar

“‘Social’ used to refer to a gathering—a dance, a party, a group of people getting together and having a shared experience,” Tori said. “Today, social means being online. But, what a lot of people aren’t realizing is that my generation is so connected online that we’re craving in-life experiences that we haven’t had in so long.”

Tori broke down what she found to be the most important steps companies can take to connect with Gen Y, according to extensive research she conducted last year. “If you’re not being transparent and authentic, you’re not being anything,” she said. “Gen Y’s biggest pet peeve is lying. And, because of the new age of Internet and technology, we can find out the truth about anything we want.”

My generation is so connected online that we’re craving in-life experiences that we haven’t had in so long.

Additionally, Tori demonstrated why the direct sales channel is uniquely poised to connect with the youngest generation of budding entrepreneurs. “It’s all about social selling. It’s about providing the connection with others we crave so much,” she said. “A lot of kids in my research study said they had purchased direct selling products, but it wasn’t because of the products, it was because of the person selling them.” “My generation is a generation of social dreamers,” she continued. “Your company can be the introduction to making their dreams happen.”

The “Branding Diva”

Managing Your Brand

During the final general session, “The Branding Diva”—Karen Post— dazzled the audience with key findings on how companies manage brand turnaround if and when they encounter a public relations crisis. According to research she compiled from OnlineEducation.com, on an average day, more than 210 billion emails and 5 million tweets are sent and, every minute, 48 hours of video are posted on YouTube. With that in mind, Karen said, companies must recognize enemies are everywhere. “Brand risk is an unavoidable consequence of doing business,” she said. “Companies must be ready and prepare for the ‘what if’ scenarios in advance.” With that in mind, should a company come face-to-face with a PR crisis, it is important to remember to “own your story,” Karen advised. “You have to stay ahead of the storm and manage the media,” she said. “Make sure you have the right person handling the situation—it’s all about brand voice. You have to take responsibility in order to shift the tide from crisis to composure.” Karen Post

Candid Conversations through Workshops Although 330 industry and outside experts participated in the 2012 Communications & Marketing Conference, this year’s workshop offerings provided attendees with ample opportunities to take part in close-knit, candid conversations on topics impacting the direct selling industry on a day-to-day basis. While communications and marketing professionals made up a large portion of this year’s attendee list, direct selling executives of all backgrounds—ranging from government relations to information technology—flooded the hallways of the Terranea Resort as they chose from 12 workshops on topics in communications and marketing. Industry leaders, company founders and even academicians traveled to Los Angeles to provide insights on how technology innovations and changing demographics have transformed not only the communications realm, but also direct selling itself.

Connecting Online How Amway Increased Social Media Engagement

We have a built-in group of “superusers”.... that are dedicated to our brand.

“What separates the direct selling industry from others is that we have a built-in group of ‘super-users’ in the form of our distributors that are dedicated to our brand and have a vested interest in sharing our content with their downline and customers,” said Neely Adkins, Online Community Manager for Amway and a co-panelist for the “Creating Community through Content” workshop.

Workshops During the workshop, Amway demonstrated how it increased engagement across its U.S. social media properties by broadening its content mix, stepping up the use of multimedia and increasing fan interaction. While Amway illustrated how companies can leverage multimedia to build a sense of community between the corporate office, the field and customers, other workshop hosts outlined how advancements in Internet technologies and social media can also broaden a company’s educational capacity. “One of the best—and only—methods for influencing distributor behavior is through training,” said Buck McMurray, Director of Channel Marketing for Morinda Bioactives and co-panelist of “New Approaches to Online Training.” “With training, companies can increase retention, average order size, frequency of orders and customer acquisition.” McMurray delved into the importance of Learning Management Systems (LMS) as great platforms for delivering training for distributors. LMS reporting functions, he noted, allow companies to measure the impact of their training programs.

Buck McMurray

“Taking a reality-based approach with online training videos helps to capture the audience with a message that is delivered by someone that they can relate to—the real distributor and not the scripted distributor,” added co-panelist Jonathan Ducos, Chief Operating Officer for Lifemax. “With the increase in popularity of reality-based television and the rise of social, it’s important to recognize these social trends and adapt to what is working to captivate your audience.” In addition to tackling LMS functions and community-building, attendees learned about using social media effectively during the “Partnering with Field Leaders to Amplify Results through Social Media” workshop. Xanthie Drankus and Elana Schuldt of Rodan + Fields shared their insights on leveraging social media. “The goal of our presentation was to share strategies and results from three recent Rodan + Fields social media campaigns,” Xanthie said. “If you can align your field with your goals and messaging, you can truly create a groundswell around your brand and campaigns… Social media is dynamic and ever-changing. Adaptability is key in order to stay ahead of the curve and maintain a relevant presence.”

A Changing Field Advanced Training for Today’s Communications & Marketing Leaders It is no secret that advancements in communications technologies and changes in consumer behavior have transformed the way communications and marketing professionals operate. Given the unique social nature of direct selling, communications and marketing managers at today’s leading companies work tirelessly to nurture crucial relationships— with field leadership, company peers and the global colleagues they manage.

Workshops

That is why John Parker, Chief Sales Officer for Amway, and Mark Bain, President of Upper 90 Consulting, co-panelists for “The New Breed of Communications & Marketing Leaders” workshop, demonstrated for this year’s conference-goers why professionals today need advanced management, leadership, interpersonal and international competencies on top of the technical skills necessary to perform at the highest levels. “Globalization and technological developments have increased the pace and scale of change in business today, and with rising expectations of management for leaders to perform, some communications and marketing leaders are struggling to develop and evolve fast enough,” Bain said.

John Parker

Parker and Bain led an interactive session to crowdsource a new competency model for communications and marketing leaders in direct selling. Some of the management and leadership skills the group prioritized included strategic business thinking, disciplined planning, process management and managing diversity.

Additionally, Kim Sater, Director of Consumer Marketing for Mary Kay Inc., and Bobbie Wasserman, Managing Director for Wave2Alliances, recognized how direct selling companies today can harness technology effectively and invest in a solid public relations department. “Historically, direct sales companies have left public relations to their entrepreneurial salesforce,” Bobbie said. “Yet, in today’s hyper-connected world, it is the enterprise that establishes reputation and consistently communicates culture and milestones that attract distributors and customers.” As Bobbie noted, everything a company communicates is public relations and impacts its brand and reputation. “It is content that builds relationships, influences outcomes and provides information critical to the success of the enterprise,” she said. “Your company’s reputation can be damaged long-term with a single click of the mouse. A strategic, strong and effective public relations program results in variety of content, in multiple voices and is distributed through many channels and platforms.”

Game Changer Marketing through Avatars & Virtual Worlds Recognizing how social media has transformed the way men and women of all ages and backgrounds shop and do business, DSA invited several industry and outside experts to speak about key topics such as the use of virtual worlds, gamification and search engine optimization. “Traditional ‘chalk and talk’ sales training programs do not appeal to younger consumers, who prefer to interact digitally rather than at sales meetings or other in-person venues,” said Dr. Dr. Michael Solomon Michael R. Solomon, Professor of Marketing at St. Joseph’s University, and co-panelist of this year’s “Using Avatars & Virtual Worlds to Capture Gen

Y” workshop. Along with Dr. Greg W. Marshall, Professor of Marketing & Strategy at Rollins College, Solomon illustrated how virtual platforms offer a solution for companies looking to provide distributors with engagement and training opportunities.

Workshops

“Members of Gen Y value communal learning opportunities where there are no ‘winners or losers.’ Their familiarity with video games creates a fondness for trial-and-error learning in an environment of suspended reality. They are motivated to participate in game-like situations where they receive a constant stream of small rewards rather than a big payoff they may receive after a period of time.” “By nature, the direct selling industry is uniquely suited for deployment of these new environments,” he continued. Among the key applications for industry firms are customer co-design for new product development, which allows independent representatives to provide concrete input, and training and support for representatives that forces a sense of community and maintains motivation. Additionally, Dave Sattler, Digital Marketing Manager for Scentsy, discussed the importance of recognizing the relationship between search engine optimization and social media in order to connect with various audiences. “SEO and social media may not be the duo you expect, but as search engines increasingly use signals from social media to determine the value and relevancy of your website or content, these two should really get to know each other and align their efforts,” he said. Along with Don Sorenson, President of Big Blue Robot, Sattler discussed what he referred to as “The Three Es”—enemies, exploiters and evangelists. “As direct selling brands, we compete with the first two Es to craft the online perception of our brand,” Sattler said. “We want to amplify the third E—evangelists—particularly as the value of their social action grows in value to search engines.”

Smart Start

Pre-Conference Seminar Provides Smart Start for New Business Owners

On Wednesday, Dec. 5, veteran direct selling executives and those new to the sales channel gathered together to tackle pivotal topics in marketing, compensation plan design, key operating indicators and the driving factors behind what it means to be successful in direct selling. These discussions took place during DSA’s day-long Smart Start Seminar, held in Los Angeles prior to the beginning of the 2012 Communications & Marketing Conference. Moderated by Pam Dean, Chief Executive Officer of Avalla, the seminar provided an opportunity for executives from a wide variety of companies to voice their concerns and gain insights from industry experts who know the challenges those new to the industry face. “What you do today will affect your business 10 or 20 years from now more than you can possibly imagine,” Pam advised. “The institutions you build into your plan will create

A Smart Start

a different set of opportunities and a different set of challenges down the road, so it’s important to talk to others about it.”

Throughout the Smart Start Seminar—as well as the conference itself— industry leaders stressed that building and strengthening relationships with distributors and customers alike often plays a more critical role in the success of a direct selling business than the products themselves. “Stepping back from your actual product and understanding that you’re a people company first is important,” said Stephanie White, Chief Executive Officer for Become International. “If you don’t do that, you’re going to have quite the hill to climb. The difference between a brand and a product is how people connect with your company. You can’t lose touch with the people. You’ve got to get your hands dirty and keep them dirty in order to understand the business.” Among the year’s topic leaders were Cindy Monroe of Thirty-One Gifts, Gabrielle DeSantis and Monica Hillman of Gigi Hill, Richard Brooke of Oxfresh.com/21Ten and DSA President Joe Mariano. Participants truly grasped the significance of relationships and peer-to-peer information sharing as executives swapped candid advice and offered an inside look at the inner workings of their companies.

Cindy Monroe

“When you’re creating your company’s marketing plan, it’s really more about creating the personality of your company,” Pam said. “Do you want your field organization to reflect a certain behavior, to follow a certain training pattern and to offer a certain product line? Certain products do not fit well into certain plans. For those new to direct selling, I would start by looking at those companies you admire and start asking those questions.” “Be bold and be confident in what you’re doing,” Gabrielle later added. “Don’t try to look like everyone else. Don’t assume just because someone’s doing something it means it’s working.” “Lastly, be yourself,” she continued. “The more authentic you are with your field, the better things will be.”

Gabrielle DeSantis

Hollywood Glam Reception Introduces Digital Media Awards The 2012 Communications & Marketing Conference also marked the premiere of DSA’s Digital Media Awards, during which direct selling member companies were recognized for the outstanding digital media content they produced throughout the year. “We received more than 100 entries for this awards program across 13 categories,” observed DSA Chief Marketing Officer Amy Robinson. “This is a huge success

providing all conference attendees with some great ideas they can review with their teams long after they leave Los Angeles.”

Award Winners

Conference-goers had their first opportunity to review the entries and vote for their favorites during the Hollywood Glam Opening Reception, Wednesday, Dec. 5. Executives browsed through the category entrants using 13 iPads on display and texted in votes for their favorites. Attendees also received copies of the entries on their conference thumb drives and voting remained open for 24 hours prior to the final tally being taken. Congratulations to the winning companies! Best in Show: 4Life for the company’s newsletter entry Blogs: Southwestern Advantage E-Brochure/Catalog: SimpleXity Health E-Newsletter-Customers: WineShop at Home E-Newsletter-Field: 4Life Facebook Page: Nu Skin Mobile App: Signature HomeStyles Online Advertising: Mary Kay Online Training: USANA Twitter Campaign: ACN Visual Media: XANGO Website—Corporate: JAFRA Website—Microsite: Scentsy Website—Mobile: 5LINX

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Dec. 4-6, 2013

Smart Start Seminar

Washington, D.C.

Put the Pieces Together This December! This December’s Be Connected Conference will provide you with innovative ideas for how to best connect with your audience. Whether you’re looking for the latest marketing tactics, communications skills to ensure your audience “gets it” or field development programs that will increase recruitment and retention, this conference will have everything you need and more to get your company focused and ready for 2014.

Featuring Keynote Speaker Ken Schmidt Formerly the director of communications for the HarleyDavidson Motor Company, Ken Schmidt will take the main stage and get you revved up to throw away the conventional and take your communications strategy for a walk on the wild side! In his position at Harley-Davidson, Ken played an active role in one of the most celebrated turnarounds in corporate history. Be in the audience this December to find out from this trend-setter how you can build corporate cultures, rekindle relationships with customers, embrace the untraditional and expect the extraordinary!

Meeting Highlights Ken’s keynote is just the beginning! This sell-out conference will feature: More than a dozen information-packed workshops Three general sessions l A customized exhibit hall experience l Creative networking opportunities l The Digital Media Awards l l

Plan now to spend two days this December focused on connecting with other executives in the sales channel and sharing the ideas, tactics and strategies you need to be successful. Put the pieces together this December!