Judge Rejects Vemma’s Proposed Compensation Plan over Inventory-Loading Concerns

A federal judge has denied Vemma Nutrition Co.’s motion to approve its revised compensation plan, under the terms of a preliminary injunction issued against the Arizona-based company last month.

In his preliminary injunction issued on Sept. 18, U.S. District Court Judge John J. Tuchi ordered that Vemma could resume business operations within a set of restrictions, including a prohibition on paying any compensation related to the purchase or sale of goods or services unless the majority of such compensation is derived from sales to or purchases by persons who are not members of the marketing program. He also required Vemma to obtain FTC approval before it issues new marketing or sales materials.

Since that ruling, court records show, the company and the FTC have been in frequent contact as Vemma has worked to restart operations. One point of contention has been establishing the company’s new compensation plan. Vemma’s proposed plan included: adjusting the number of Personal Volume points an Affiliate needs to qualify for bonuses, not counting an Affiliate’s personal purchases toward those Personal Volume points, and a “51% Rule,” designed to meet the preliminary injunction’s requirement for retail sales. The rule would have paid full bonuses to an Affiliate if 51 percent or more of the sales within the Affiliate’s organization were to customers outside the compensation plan. Affiliates would have been eligible for partial bonuses if their sales fell below the 51 percent threshold, using the amount of customer sales as the baseline.

The FTC rejected this, saying it would incentivize recruiting over customer sales and put pressure on Affiliates to engage in or encourage inventory loading. The FTC also made specific reference to Vemma’s binary compensation plan structure, writing in its objection to the court, “In addition Vemma’s ‘51% Rule’ is insufficient as a safeguard to address the natural incentives of Vemma’s Binary Plan, because it allows substantial compensation to be paid to an Affiliate even if the majority of the Affiliate’s downline sales volume is generated by sales to or purchases by other Affiliates rather than Customers.” At an impasse, the company took its plan to the judge on Oct. 16. Judge Tuchi heard arguments on the motion on Oct. 21, took the matter under advisement and issued his ruling Oct. 28.

Tuchi sided firmly with the FTC, writing, “Because the 51% Rule can provide significant compensation to an Affiliate whose sales are principally to downstream Affiliates, who may well be inventory loading, and because the proposed compensation plan does not include other anti-inventory loading safeguards or otherwise incentivize sales to Customers rather than Affiliates, the proposed compensation plan does not meet the provisions of the Preliminary Injunction or go far enough to prevent pyramiding behavior that violates the FTC Act. The FTC suggests that the Court require that any plan proposed by Vemma only provide for the payment of a bonus to an Affiliate whose organization’s sales to Customers are at least 51% of the total sales for the organization. While Vemma requested that the Court not dictate the terms of its compensation plan, the Court notes that the FTC’s suggestion would serve to remedy the issues incumbent in the present 51% Rule.”

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Vemma Battles FTC to Restart Operations

Arizona-based Vemma Nutrition Co. had its day in court Sept. 15, making its case and asking Judge John J. Tuchi to lift or modify the terms of the court order that has put a halt to the company’s business.

In August, the Federal Trade Commission sued Vemma, accusing the company of being a pyramid scheme, making false and misleading income claims, and failing to provide appropriate income disclosures. The FTC requested and received an ex parte temporary restraining order with asset freeze and the appointment of a receiver, which meant Vemma executives did not have an opportunity to offer a defense prior to the order being issued. The FTC has asked the judge to extend the government’s control of the company with a preliminary injunction. It is the first significant FTC action in the direct selling space since the Ninth Circuit of the U.S. Court of Appeals’ 2014 ruling that BurnLounge Inc. was an illegal pyramid scheme. The court’s final decision will join existing case law in shaping the legal standards that govern direct selling in the United States and may provide new insight into how federal regulators view the distribution channel.

The more immediate issue for Vemma, however, is that the temporary receiver appointed in the case has shut down all company operations, including its international business units and retail sales. “There is no doubt that if this injunction is left in place we are never going back,” Vemma’s counsel said in his closing summary before the judge. The temporary restraining order expires at 2 p.m. local time on Friday, Sept. 18, and Judge Tuchi said he will issue his ruling before that deadline.

The courtroom was packed for the all-day hearing, which included cross examination of witnesses on both sides of the case: FTC investigator Matthew Thacker; professor Stacie Bosley, who provided an analysis of Vemma’s compensation plan for the FTC; Truth in Advertising Executive Director Bonnie Patten; Kenton Johnson, Executive Vice President of Robb Evans & Associates, the temporary receiver currently running the company; professor Emre Carr, Vemma’s compensation analysis expert; Allison Tengan, Vemma’s Vice President of Legal Affairs; and Vemma COO Brad Wayment.

During the hearing, the FTC continued to shape a sweeping case that Vemma’s compensation plan improperly paid Affiliates for recruiting and not for product sales to end users, its marketing materials made inaccurate income claims, and its compliance efforts were ineffective. The defense offered testimony to refute those assertions, arguing that the government built its case without using actual purchasing data from the company and by cherry-picking often out-of-date marketing materials. The defense also focused much of its time before the judge on building a case for why the TRO should be lifted or modified, including establishing that the receiver spent a combined 90 minutes with company management before deciding that he could not continue any aspect of Vemma’s operations under the terms of the TRO.

Reliv Brings LunaRich X Production In-House

Reliv International Inc. is taking over the production of its award-winning LunaRich X supplement with the installation of an in-house encapsulation line.

The addition to Reliv’s St. Louis-area headquarters will enable the nutrition brand to meet increasing demand and ensure quality control, said Chief Operating Officer Brett Hastings. “We can now manufacture more than 48,000 capsules per hour to support the growing businesses of Reliv distributors around the world,” Hastings shared in the company’s release. “The line will also keep costs low and pave the way for future encapsulated product offerings.”

LunaRich X is the company’s powerhouse lunasin supplement. Lunasin, a naturally occurring soy peptide, has been the subject of more than 80 published papers from dozens of research institutions. A University of Missouri study showed that Reliv’s LunaRich X supplement aids in promoting metabolic health. The product was named 2013 People’s Choice for Favorite New Consumer Product by the American Business Awards.

Reliv generated revenue of $57.3 million in 2014, down 20 percent from 2013. Following losses in the first half of the year, the company posted profit in the third and fourth quarters as changes to its compensation plan and a cost containment initiative took effect. Net income was $725,000 versus $777,000 in 2013, with earnings remaining steady at 6 cents per share.

The New Talk Fusion Launches with Fresh Designs, Offerings

Moving at the speed of technology, Talk Fusion has overhauled its web-based business with fresh designs, product offerings and incentives. This week the video communications company unveiled its new look—and its new “Better with Video” slogan—during a Talk Fusion Dream Builder Broadcast by the company’s Founder and CEO, Bob Reina, and Vice President of Training and Development, Allison Roberts.

“At Talk Fusion, we’re constantly innovating, we’re constantly pushing the envelope to keep our video communication products exciting and ahead of the technology curve,” Reina told DSN. “This gives our Associates a huge competitive advantage with hot technology that’s the talk of the Internet.”

Talk Fusion’s newest offering is CONNECT Video Chat, an industry-first product that utilizes WebRTC to enable real-time video communication between any web browsers. Customers can try a free product demo via one of Talk Fusion’s newly redesigned websites, which introduce the company through videos in multiple languages.

The redesign extended to Talk Fusion’s full CONNECT suite of products, which features Video Email, Video Newsletter and Live Meetings as well as the chat tool. With its video communications technology, Talk Fusion has surpassed industry giants such as Yahoo, AOL, Viacom, CBS and MegaVideo to become the eighth-largest online video content provider in the world. Now in 140 countries, the company is setting its sights higher with a fresh look and innovative product offerings.

“Ultimately, our relaunch goal is to maximize the Talk Fusion brand worldwide, which has the additional benefit of helping our Associates achieve greater financial freedom,” said Reina.

As they build their businesses, Talk Fusion Associates will have the opportunity to earn new rewards for their work. The company has also revamped its compensation plan with incentives like Rolex watches, gold and diamond rings for milestone achievements, and a purchased Mercedes-Benz.

Party Plans on Fire

by Andrea Tortora

Click here to order the December 2014 issue in which this article appeared or click here to download it to your mobile device.


Ignited by emotional connections forged with customers, access to products once only available at expensive salons and an embrace of social media, a handful of party plan companies are seeing their business boom—with no signs of a slowdown.

Nail wrap creator Jamberry, beauty products firm Younique, personalized jewelry maker Origami Owl and two newcomers—jewelry boutique Chelsea Row and nontoxic cosmetics maker Beautycounter—are experiencing significant advances in profits and popularity at a time when overall growth for the party plan model is stuck in a plateau.

Data from the U.S. Direct Selling Association’s 2014 growth and outlook report reveals that between 2008 and 2013, party plans dropped from 26 percent to 23 percent of market share as a direct selling platform.

“Home parties in terms of their success are fairly cyclical,” says DSA President Joe Mariano. “When we think it is hitting a low point that is when we see a rebirth.”


While 40 million business-related fan pages exist on Facebook, only 17 percent are equipped to sell directly through the social media channel. This is where direct selling has an edge.


Top-Ranked Companies

These five standout companies are evidence of that resurgence. Two of them—Jamberry and Younique—are in the Top 10 six-month trend rankings at HomePartyRankings.com and MLMRankings.com, which track public interest and Internet popularity of most party plan direct sellers.

Jamberry reports revenue is more than $10 million a year. Younique’s distributors have said the company sold more than $25 million in September, up from $1 million in December 2013.

Origami Owl is consistently listed in the Top 5 for overall rankings at both sites. It posted 2013 revenue of $233 million and grew by 870 percent for the year. As a reflection of this growth it was ranked at No. 50 on the 2014 DSN Global 100 and received the DSN Bravo Growth Award Based on Percentage this year.

Chelsea Row, launched in September 2014, is too new to have its own rankings. A spinoff of e-commerce selling platform company Kitsy Lane, Chelsea Row is turning the traditional home party on its head with vParty—a truly immersive, real-time virtual party that lets guests shop together online while being connected on audio and video.

Beautycounter launched in March 2013 and offers a safe and nontoxic line of skincare products that work. The company now counts 4,000 consultants in more than 44 states, with 23 percent average monthly revenue growth. Between January and October 2014, Beautycounter posted 424 percent sales growth.


Beautycounter’s “Never List” is “a robust roundup of ingredients that you will never find in Beautycounter products,” as many are known or believed to cause irritation, allergic reactions or cancer.


Embracing Social Media

The founding philosophies of these companies are rooted in a desire to better the lives of women by empowering them with products that aid self-expression and by providing the flexibility, resources and training needed to build a career. Each utilizes social media such as Facebook to drive sales, although the strategy is different for each business.

To maintain growth, diving deep into social media selling is likely to yield even larger dividends. Here’s why: An analysis by marketing firm Vocus projects that by 2015, half of all web transactions will occur through social media, accounting for an estimated $30 billion in sales. While 40 million business-related fan pages exist on Facebook, only 17 percent are equipped to sell directly through the social media channel. This is where direct selling has an edge.

The Power of Virtual Parties

Jamberry, Younique and Origami Owl use the Facebook event model to host virtual parties.

Younique sells almost exclusively on social media. Jamberry and Origami Owl independent consultants use Facebook events to supplement the home party experience. Origami Owl Chief Sales Officer Sandy Spielmaker says the technology “extends the reach of the home party.”

Best known for its 3D fiber lashes, Younique built its selling model on virtual parties for two reasons, Co-Founder Melanie Huscroft says. “The overall feeling among women was they are so over the traditional home party and having to clean the house, make the food and send their husband and kids away,” she says. “The virtual platform allows the invite list to be limitless, and location doesn’t matter.”

Virtual parties typically run for seven to 10 days, with independent consultants making frequent posts to encourage interest and spotlight products. Consultants do not carry inventory. They sell through their own branded e-commerce websites.

Many consultants also create videos or use those provided by Younique, Jamberry or Origami Owl to explain how to use the products and suggest ways to mix them up to create new styles. Guests link to these videos through the Facebook event page for their specific party.

The model is working for Younique. In the near future, its virtual party model will also work on other social media platforms, such as Twitter and Pinterest. At 2 years old, Younique now counts 121,285 presenters in five markets. When it entered the U.K. on Oct. 1, 999 presenters signed up within 26 minutes.

Huscroft says people want to sell Younique because of its “simple and generous” compensation plan. Younique pays presenters within three hours of making a sale. Each presenter receives a bank account and a Younique debit card.

“It doesn’t matter what the compensation plan is from a corporate perspective. Everyone pays out … Click here to read the full article

 

 

 

90 Days of Direct Selling – Day 59

DSN_90Days_Email_Signature

Nikken Global Inc.

2013 Net Sales: $115 million

Country: USA

Nikken provides a balanced lifestyle through products (rest and relaxation, nutrition, and environment categories) and a rewarding compensation plan.

 

2012 Rank: 77
2012 Net Sales: $133 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Wellness, skin care, environmental, rest and rejuvenation
Markets: 38
Salespeople: 225,358
Employees: 462
Headquarters: Irvine, California
Executive: Kurt Fulle
Year Founded: 1975
Website: www.nikken.com

Controlling the Conversation: Balancing Product and Opportunity

by Lori Bush

Click here to order the September 2014 issue in which this article appeared or click here to download it to your mobile device.


At Rodan + Fields, when we made the decision to pivot from our department store marketing channel to direct sales, a great deal of consideration was given to protecting the brand equity that derived from our founders’ legacy in the skincare segment of the beauty industry. As we looked to transform our go-to-market strategy, we wanted an independent business ownership model with low cost of entry that afforded our Independent Consultants the opportunity to compete with other industry players. The key here is what we define as our “industry.” While there are many definitions for the word industry, the most relevant ones read something like this: noun \ˈin-(ˌ)dəs-trē\: a group of businesses that provide a particular product or service. By this definition, Rodan + Fields is in the beauty industry. The business opportunity derives from product leadership coupled with our sales and marketing strategy: The opportunity itself is not our principle product.

Sounds simple enough, right? But gaining buy-in and protecting and advancing this aspect of our brand equity is a challenge that requires rigor in monitoring and compliance, especially when it comes to engaging direct selling veterans as employees or as Independent Consultants. Our investment in product and brand development is materially eroded when a successful business-building Consultant is dismissive or even disparaging to those who want to engage as product ambassadors rather than promoting the business model. The worse-case scenario of this is the proclamation that “it doesn’t matter what you’re selling as long as the compensation plan works.” Not only does this fly in the face of who we are, but it generates ill will and validates the position of those who challenge the legitimacy of our business model.


Out of a deliberate exercise to define the soul of our company, a clear set of business values emerged, which we call our “True Colors,” and we constantly assess our people and programs for demonstration of these values.


So what is direct selling to Rodan + Fields if it’s not an industry? We see direct selling as crowdsourcing our marketing and sales initiatives. And with the advantages of social, mobile and web-based tools for customer acquisition, engagement and monetization, it is a highly effective, modern business model that provides individual micro-enterprises the opportunity to participate and capture market share in an important, lucrative and growing consumer products category.

Soul Searching

When we launched our current business program in 2008, we believed we had the opportunity to help shift public perception of direct selling and went as far as to bake this notion into our mission statement: “Our mission is to redefine independent business ownership with brand presence and transformational products and programs that change skin and change lives.” It didn’t take us long to learn that walking the talk requires constant commitment to education and compliance because, when it comes to salesforce behavior and performance, the simple fact that something works doesn’t necessarily make it right.

Another part of our mission statement, the creation of “an enduring legacy for our Consultants and our employees,” led us to take a deep dive into the soul of our company. To truly have a company soul requires a shared understanding by everyone who is involved as to purpose and values. Out of a deliberate exercise to define the soul of our company, a clear set of business values emerged, which we call our “True Colors,” and we constantly assess our people and programs for demonstration of these values. One of these key values is Assurance.

Assurance is about brand and business integrity; it’s the commitment to our Consultants and their customers that what they signed up for is what they get. If we promise a unique brand and uplifting culture one day and they show up to find a generic, hardcore moneymaking scheme the next day, our soul is eroded. “Assuring” that the Rodan + Fields brand and business models continually meet or exceed expectations requires surveillance of how our programs manifest into and through our sales organization.


We have a responsibility to our sales organization, their customers and the direct selling community at large to control the conversation so that it doesn’t become controlled for us.


Responsibility

I recently attended a training conducted by members of our field development team and discovered that some important aspects of our program had drifted away from our original intent in response to preferences of some of our Independent Consultants. Even though these preferences could, arguably, accelerate the rate of growth of a Consultant’s income, they could put the long-term value of the brand and business opportunity at risk. In a nutshell, there was an overemphasis on recruiting and building an organization without a balanced focus on engaging and servicing customers. Both aspects of the business model are important, but the training was heavily biased toward the former without first firmly establishing the brand, product experience and our overall approach to social commerce. We recognized the need to make an adjustment to our approach in order to reinforce key aspects of our value proposition.

Instilling an understanding of the rationale for our vigilance helps our internal team and our Consultant leaders appreciate the importance of governing the execution of our business programs in the marketplace. No matter how carefully we craft our compensation program and articulate our Policies and Procedures, if we promote or turn a blind eye to practices that undermine our brand value proposition, a handful of rogue players can wreak havoc and lead to significant net detractors for our products, our programs and even direct selling in general. We have a responsibility to our sales organization, their customers and the direct selling community at large to control the conversation so that it doesn’t become controlled for us.

A direct selling business model enables us to collaborate with passionate micro-entrepreneurs to market compelling, innovative products and services that might never see the light of day in risk-averse brick-and-mortar retailing models. Our future is dependent on continuous introspection as to how we guide our Independent Consultants to appropriately communicate our brand and business values. The meaningful marketplace value of our opportunity is part and parcel of our compelling product proposition. If we present this the right way, the word pyramid should never enter anybody’s mind, much less the conversation.


Lori Bush

Lori Bush is President and CEO of Rodan + Fields.

BurnLounge Roundup: Unpacking the Ninth Circuit Decision

Click here to view this article on our web page

This month the United States Court of Appeals for the Ninth Circuit passed down a long-awaited decision in the case of FTC v. BurnLounge Inc. The Federal Trade Commission brought a pyramid complaint against the New York City-based company in 2007.

Digital music seller BurnLounge positioned itself as a breed of network marketing company that enabled independent retailers to sell music through online “BurnPages.” The company’s labyrinthine compensation plan included multiple income opportunities, with extra incentives based upon the sale of premium packages rather than actual merchandise.

The recent ruling upholds a 2012 judgment barring the defendants from operating a pyramid scheme and ordering the payment of $17 million in damages. The opinion provoked a flurry of related opinions on its implications, for Herbalife in particular and direct selling in general. We’ve rounded up commentary from industry legal experts and other interested parties to provide a better understanding of the precedent established in BurnLounge.

 

 

 

  • Pershing Square Responds to Recent Ruling in ‘FTC v. BurnLounge Inc.’ “The notion that the Ninth Circuit’s decision is a vindication of Herbalife is absurd. The case certainly does not support Herbalife’s position that sales of products to distributors who tried—but failed—to succeed in their pursuit of the Herbalife business should be regarded as true retail sales.”

 

  • BurnLounge Appeal Decision by MLM attorney Jeffrey Babener “[TheBurnLounge decision] will dramatically impact the landscape of direct selling to provide guidance on two fundamental legal issues: (1) What activity constitutes a pyramid scheme? (2) What is the role of ‘personal use’ (by distributors) in pyramid case analysis?”

We Don’t Need to Change Or Do We?

by John Parker

We’ve all heard that it’s lonely at the top, or that leadership is the other side of the coin of loneliness. Many have embraced this notion, but I would invite them to closely study—and experience—how direct selling really works. It just might change their minds.

Entrepreneurship in our industry is far from a lonely proposition. In fact, it’s just the opposite. As insiders, we know that. But when a well-respected business professor and author on global entrepreneurship recently asked me about it, I realized we still have a lot of work to do to prove it. She said, “I spend every day with students, both in the U.S. and abroad. If there is one thing they seem to have in common, it is a desire for work that is meaningful above and beyond what it pays them. They want their careers to leave a positive impact on society. How is your industry changing to prepare for them?”

My first thought was: Changing? But we don’t need to.

Direct selling companies are unique in how we create an environment where communities naturally form. If we were a sport, we would be a team, not an individual sport.

But here’s what I think is tough for us to grasp as industry executives: Lasting communities form around causes or values—not products or brands. In fact, some of the most successful organizations at Amway have discovered that what identifies them as a team is not the dietary supplements or anti-aging creams they offer. It’s about a shared value system and the “something bigger—achieved together” the professor was asking about.

In 2013, two legendary Amway leaders passed away. As we mourned, we also reflected on this very concept. We focused on the legacies they left in the world, not as entrepreneurs, but as people. Their legacies were about helping others, whether it was building orphanages together, ensuring no one who needed a wheelchair in one country went without, eradicating hunger in a rural school system, or raising millions of dollars for Easter Seals families.

They are two reflections of the many real and powerful stories that prove what direct selling—communities with a common purpose—can do. These stories have little to do with product or compensation plans.


Lasting communities form around causes or values—not products or brands.


The opportunity we have as leaders in this industry is to respond to and state our support for the desire that people—especially young people—have to leave a mark on the world. It’s an opportunity to meet their needs as a community without attempting to define and manage them at every turn.

We have the ability to do that. We can talk to prospects about their aspirations to leave a legacy, and about the platform direct selling gives them to do it. We can teach them to find others with similar passions. We can give people an opportunity to dip their toes in the water of entrepreneurship and economic freedom—all while building lasting relationships, developing others, and providing hope and change on a very large scale.

What better foundation than direct selling is there to make a lasting difference like this in the world?


The opportunity we have as leaders in this industry is to respond to and state our support for the desire that people—especially young people—have to leave a mark on the world.


The more I think about it, the more I realize this might make us uncomfortable because, as corporate employees, we exist outside of these naturally formed communities. We help them via our unique products, compensation plans, and support, but they live and breathe for each other, not for us. We’re not shy when it comes to talking to the media, or other influencers, about the unique “product + people + plan” equation that makes direct selling tick, but have we done our job describing our communities—and their passions—as fully as possible?

I believe the answer is “no.” Otherwise, questions like the one I was asked by that professor, and those by other outsiders, wouldn’t come our way.

We can start by reminding ourselves that “people” and “social networks” are not the same thing as “community.” Much like teams in sports, communities have a goal in mind and will not rest until it’s met. People are still individuals. Social networks allow people to communicate, but they don’t always inspire people to act on a common purpose or passion.

Communities share a common belief. Our industry community exists with the shared belief that individuals can control their futures and that raising up entrepreneurs is an important contribution to society. So we are a community, and we provide community. Great, but how do we help our next generation of independent representatives understand and embrace this?

Maybe it starts with less focus on independence. Perhaps our message should be: If you’re looking for a community in which you can make a difference, direct selling is already here! We allow and support you to make your mark on the world.

We need to use our time, treasure and talent to talk about the common-purpose communities that live within our businesses. Yes, it’s a little scary because those are the very communities we don’t always directly control. But it proves to others that direct selling is one very exciting, very doable, very legitimate route to working with others to achieve that “something bigger.”

In 2014, I challenge all of us to find the communities of direct sellers within our businesses making an impact that resonates with the next generation of entrepreneurs—to show prospects that we’re businesses that don’t exist for selfish reasons, but who work to solve the problems of one person, or one community, or one country.

Speak out about how direct selling communities are a unique way to pay it forward, and how direct selling embodies optimism, which is the first thing a person needs to change the world.


Modify the conversation about direct selling. Focus on how we have and how we will serve and better entire communities.


Show people that direct selling will help them make a difference in ways they can’t even imagine because of the sheer number of people they would be able to meet and energize around any cause they choose.

In other words, modify the conversation about direct selling. Focus on how wehave and how we will serve and better entire communities. Use a new communications formula that every time includes product + people + plan, just as before, but adds “passionate purpose.”

Let’s prove that no one understands people’s desires to start socially conscious businesses better than we do, and let’s remind everyone that with a career in direct selling it’s never lonely at the top—or in any position along the way.

Before we know it, smart people won’t be asking us if we’re doing anything to prepare for a new wave of worker. They’ll be asking how they can follow in direct selling’s footsteps.


John Parker is Chief Sales Officer at Amway.John Parker is Chief Sales Officer at Amway.

Smart Leadership Spurs Growth at Rodan+Fields

Rodan+Fields

“Entrepreneur” and “CEO” are titles that go hand-in-hand in business, but their close association has been known to give rise to another kind of leader entirely: the entrepreneurial CEO. That’s what Forbes Contributor Robert Sher calls a leader whose penchant for “strategy tinkering”—however well intentioned—can have an adverse effect on organizational growth.

The temptation to pursue new strategies or other shiny objects can cripple a management team’s ability to execute and distract from the company’s core mission. Sher points to the rapid growth achieved by skincare company Rodan+Fields as a case study in balancing new and existing strategies.

In 2010, Rodan+Fields was experiencing disparate success rates among the company’s growth programs across various regions. CEO Lori Bush could focus on ramping up the compensation plan to attract new distributors or invest in developing the company’s current sellers and identifying potential high-performers.

Rather than a comprehensive overhaul at either end, Bush created a behavioral training pilot program to determine the optimal strategy for the company. The program enabled Bush’s team to experiment and glean wisdom with minimal participation from or risk to the wider organization.

By channeling and vetting new strategies while sustaining organizational momentum, Rodan+Fields has experienced what Dan Chard refers to as The Power of Alignment. Chard, President of Sales and Operations at Nu Skin, underscores the need for a clear, consistent strategy flowing from the management team to distributors in his recent Working Smart feature for DSN.

Read the full story from Forbes.