Andrew Bevz, Author at PromoRepublic Blog | Insights for Franchise & Multi-Location Marketers Explore insights on AI, franchise marketing, and local activation — real stories, data, and strategies for multi-location brand growth. Wed, 25 May 2022 07:52:38 +0000 en-US hourly 1 https://wordpress.org/?v=7.0 https://promorepublic.com/en/blog/wp-content/uploads/2025/10/cropped-Favicon-32x32.png Andrew Bevz, Author at PromoRepublic Blog | Insights for Franchise & Multi-Location Marketers 32 32 Direct Sales Industry Roundup: The Top 5 Stories of October https://promorepublic.com/en/blog/roundup-october/ https://promorepublic.com/en/blog/roundup-october/#disqus_thread Fri, 05 Nov 2021 14:20:47 +0000 https://promorepublic.com/en/blog?p=14194 What’s Inside October brought some tech innovations for top brands, the FTC’s Notice of Penalty Offenses, new Avon prices, and a well-deserved award for Doug DeVos. Stay tuned and never miss a beat! The FTC Warned 1,100+ Companies, Impacting Direct Sellers As a target of the campaign, a company could incur significant civil penalties—up to […]

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What’s Inside

October brought some tech innovations for top brands, the FTC’s Notice of Penalty Offenses, new Avon prices, and a well-deserved award for Doug DeVos. Stay tuned and never miss a beat!

The FTC Warned 1,100+ Companies, Impacting Direct Sellers

The FTC warning

As a target of the campaign, a company could incur significant civil penalties—up to almost $44,000 per violation—if they or their representatives make claims about money-making opportunities that run counter to prior FTC administrative cases.

Mary Kay is Launching Mary Kay App

Brand lovers now can connect with their Mary Kay Independent Beauty Consultants and shop the latest products, create shareable wish lists, receive customized recommendations, and find detailed information on skincare, makeup tips, and more.

Former FTC Commissioner Pamela Jones Harbour Joins Tupperware Brands’ Board of Directors

Ms. Harbour joins the Tupperware Board after an impressive career in competition law, consumer protection, information privacy, and data security to help the corporation offer even more protection to its sales force and consumers.

Avon Pledges Price Cap Amid Supply Chain Crisis

“We made that commitment that we’re not going to price up, but to keep a fair value for all our products, to not pass on as much as possible and to mitigate,” Chief Executive Angela Cretu said. “I’m keen not to put this global turmoil on consumer’s shoulders.”

Amway’s Doug DeVos Honored with WFDSA Lifetime Achievement Award

“What an amazing lifetime achievement for Doug! He is a guru for me, and a whole generation of leaders across Amway and across the entire direct selling industry,” said Amway CEO Milind Pant.

More good reads for you

So You Received a Notice of Penalty Offenses, Now What?

An attorney at Thompson Burton PLLC explains what it means to be on the latest FTC list. Read the legal opinion on compliance matters for direct selling companies.

Creating a Meaningful Corporate Purpose

5 considerations that are critical for defining a powerful corporate purpose and for inspiring discouraged and anxious employees.

Beauty for Good

The fascinating story of JAFRA Independent Beauty Consultant Hannah Wachter giving back to her local community and partnering with other consultants to help women in need.

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Direct Sales Industry Roundup: The Top 5 Stories of September https://promorepublic.com/en/blog/roundup-september/ https://promorepublic.com/en/blog/roundup-september/#disqus_thread Thu, 07 Oct 2021 13:08:26 +0000 https://promorepublic.com/en/blog?p=13814 “Be a cultivator of change”, – pursues the site of MyL’Occitane, a place where the world-famous beauty brand is capturing salesforce for their direct selling premiere.  What’s Inside Newcomer to direct selling industry, revolutionary digital platform, entrepreneurship contest, growth strategies from leading brands, and new executives with some expert analytics on top of that. Stay […]

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“Be a cultivator of change”, – pursues the site of MyL’Occitane, a place where the world-famous beauty brand is capturing salesforce for their direct selling premiere. 

What’s Inside

Newcomer to direct selling industry, revolutionary digital platform, entrepreneurship contest, growth strategies from leading brands, and new executives with some expert analytics on top of that. Stay tuned and never miss a beat!

L’Occitane en Provence Enters Direct Selling Channel with MyL’Occitane

To expand its omnichannel brand, L’Occitane en Provence unveiled its new social selling platform, MyL’Occitane that will provide the company’s community with the opportunity to become entrepreneurs. This is the first time in the company’s history that the L’Occitane name brand will be an active member of the direct selling channel.

Pampered Chef Launches Virtual Kitchen Experience

To meet the rapidly growing demand for virtual experiences, Pampered Chef has launched Table, a wholly-owned digital platform that enables its consultants to host customized and personalized virtual cooking parties that deliver value-added content designed to improve a consumer’s mealtime journey. 

Canada DSA and DSEF Initiate Canadian Academic Entrepreneur Challenge

It is a contest that celebrates innovative thinking, with the goals of promoting entrepreneurship amongst young Canadians, providing an introduction to the direct-to-consumer and direct selling channels, and building relationships between academia and industry.

Herbalife Nutrition Shares Growth Strategies

Over the past four quarters, the U.S. generated approximately 3.4 million new customers, and Herbalife believes there is a huge opportunity to drive top-line growth by improving customer activity and retention rates by focusing on key strategies including new product innovation, nutrition club expansion, digital transformation, and efforts to enhance trust in the brand.

L’Occitane Group Welcomes New CEO

L’Occitane Group announced André J. Hoffman will succeed Reinold Geiger as Chief Executive Officer. Geiger, who has led the company for more than two decades, will now serve as chairman of the board and executive director. Hoffman will continue in his role as vice-chairman of the board and an executive director.

A more good read for you.

The Truth About Your Top Leaders

In a direct sales company that’s 15 years old or older, your current top leaders can’t be the source of your future growth. Why? Brett Duncan, who helps direct selling companies transition into the new era of direct selling – explains it thoroughly.

5 Tips to Improve Productivity and Retention

The average employee is only productive for 2 hours and 53 minutes per day. Daryl Wurzbacher, CEO of ByDesign Technologies with 20+ years of experience in the direct selling industry shares insights on how they prevent interruptions to boost productivity and increase collaboration inside the team.

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Meet the FTC – or Else Make Your Distributors’ Social Selling Compliant. Here’s how. https://promorepublic.com/en/blog/meet-the-ftc-or-else-make-your-distributors-social-selling-compliant-heres-how/ https://promorepublic.com/en/blog/meet-the-ftc-or-else-make-your-distributors-social-selling-compliant-heres-how/#disqus_thread Thu, 23 Sep 2021 08:33:18 +0000 https://promorepublic.com/en/blog?p=13517 Covid lockdowns and the resulting digitalization have proven to be opportunities for direct selling. Historically socially oriented, and now becoming more high-tech, the industry is among those that reported growth in 2020. The number of direct sellers is currently around 7.7 million (a 13.2% increase), creating a record 13.9% growth in retail sales over the last year. […]

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Covid lockdowns and the resulting digitalization have proven to be opportunities for direct selling. Historically socially oriented, and now becoming more high-tech, the industry is among those that reported growth in 2020. The number of direct sellers is currently around 7.7 million (a 13.2% increase), creating a record 13.9% growth in retail sales over the last year.

Social selling helps direct sellers be more prolific.

According to the Direct Selling Association (DSA), 89% of direct sellers use social media, while 46% of Americans would welcome contact from direct sellers regarding business opportunities on social media.

But social media, like any other marketing communication, is subject to the principles that protect consumers against fraudulent advertising and claims. So this growing sales channel has its regulators, rules, and penalties that are designed to make companies and their distributors tell the truth about their products and services.

One of the greatest challenges for direct selling companies is ensuring that all representations comply with legal and brand standards. When companies don’t have social media guidelines or a means of controlling their message they are walking on a minefield, and they may end up in federal court.

Misleading claims draw the FTC’s attention.

Leading direct sales brands have already provided their distributors with social selling tools as part of their enablement strategy. But few of them predicted the blast of misleading earnings and product claims published on social pages after the pandemic started.

Salespeople are excellent psychologists and they understood peoples’ fears about surviving the COVID infection and preserving their financial stability. The majority of misleading statements have arisen from this fertile soil.

This behavior is considered illegal and is now attracting the Federal Trade Commission’s (FTC) attention more than ever. A single FTC contact can shake a brand’s reputation, causing a drop in new enrollments and sales. To secure their online images and good names, direct selling brands should set up rules of conduct on social media, educate distributors, and identify high-risk claims.

Below you will find a step-by-step framework to implement at your company.

7 steps to a social selling compliance strategy.

After having been contacted by the FTC in 2020, many marketers are reinforcing or updating their company’s empowerment strategy by adding compliance components to their core framework. Where to start, what to avoid, and how to train distributors? This is what your new modern approach may look like.

1. Review the Basics for Your Distributors’ Social Selling

The mission and values of your brand form the foundation that keeps the right distributors and customers with you. For this reason before updating your content enablement strategy and compliance policy, first make sure the whole team is on the same page, aligned with your brand’s core basics.

  • Brand vision, mission, values. To engage with both independent entrepreneurs and customers, it’s important for direct selling companies to be authentic, share their values, constantly foster trusting relationships, and show how their products change lives. 
  • Key audience. Make sure you pay attention to both of your audiences: distributors and consumers. Revise your strategy to cover the needs of both worlds. 
  • Reasons to believe. Make sure all your latest research, testimonials, and proven results are available for new and existing distributors. They’re the first circle of believers who will pass their knowledge and passion for the product on to their customers. 
  • The tone of voice. Be sure your guidelines are consistent across your entire network, including all social media channels.

2. Simplify Content Enablement

Marketing teams might assume a content strategy for distributors is a nice-to-have, but not entirely necessary early on. However, producing high-quality content can help direct selling companies build trust with new audiences and ultimately gain engagement with self-service buyers.

  • Build a content strategy. HQ should build a plan for field empowerment based on a constant supply of different types of content (promotional, educational, lifestyle). Ensure content is easily accessible, filtered, saved, and scheduled. 
  • Set up a dedicated team. Build your own or hire an external team to be responsible for creating and distributing content. This team should also define the cadence of content updates depending on your company’s goals and resources.
  • Encourage distributors to post lifestyle content. Lifestyle content is essential for your distributors’ credibility and their personal brands. It adds authenticity to their social image, making their interactions meaningful. When your salespeople are authentic, they create emotional connections that last longer.
  • Track content usage and top-performing content. Measure how often certain content is used by distributors and adjust your investment and production accordingly.

3. Encourage Distributors to Be Authentic On Social

Authenticity on social media is an effective way to cut through all the endless content “noise” and have meaningful interactions with consumers. The more active and authentic your company’s distributors are, the wider your online visibility gets.

  • Encourage your distributors’ authenticity. The secret of direct selling success isn’t selling. It’s all about building relationships intentionally and being real. These commandments should be burned into every distributor’s memory: care, don’t jump to a sale, wait for the right time – and get better results in the long run. 

  • Educate about personal branding. Authenticity is impossible without building distributors’ personal brands. HQ should explain, motivate, and train them on developing it. 
  • Provide tools. Give them user-friendly software that automates routine tasks and takes the load off so they can spend less time on administrivia. Let them focus on their passion – building relationships and selling.
  • Don’t limit them more than federal law does. Allow distributors to add some personal touches to branded content. Customization options and permissions can be set up by HQ according to your brand‘s policies.

4. Set Up a Compliance Policy

Social media compliance means following the rules when engaging with the public via social media. The “rules” are a mix of industry regulations, federal and state laws, and company guidelines. The basic principle of consumer protection and compliance is to tell the truth.

  • Establish clear rules of conduct. Representations – by direct selling companies and their distributors – must be non-misleading and substantiated. 

  • Use compliance tracking software. The FTC has cautioned direct selling companies that they are obliged not only to instruct their participants but also to monitor their participants so their representations are truthful. Intelligent software is able to filter keywords at the pre-approval stage as well as monitor networks for illegal content to minimize future manual searches.
  • Don’t tolerate violations. There must be no tolerance for improper ‘before and after’ photos, product testimonials, income, compensation, or lifestyle claims. Any such activity requires immediate compliance action. Distributors must know and comply with the product and opportunity guidelines.
  • Craft a crisis plan. Acting fast is important. With a proactive and detailed strategy in place, the vast majority of your distributors’ social media posts will be distributed without compromising compliance status. If there is a violation, always communicate bad news to stakeholders so they act accordingly and don’t make things even worse with inappropriate announcements.

For More on How to Make Distributors Authentic Yet Compliant on Social Media watch the webinar with Kellye Drye lawyer John Villafranco.

5. Train Your Distributors

Companies should never expect their salespeople to be social media wizards and immediately know what to do. Training should be delivered via multiple approaches, such as newsletters, videos, live events, etc.  Solid education creates an expectation in the field and leads to a more professional sales culture.

  • Be an example of social media authenticity. 86% of consumers say authenticity affects their brand support. People want open and honest communications about products and services. That means brands should focus on their values, create emotional connections, and have clear, consistent messages to attract and retain new distributors. As a result, your salespeople will recreate this pattern in their businesses. 
  • Explain the value of social media marketing. Older social media users may not be tech-savvy or aware of the possibilities of social media for their businesses. Give them a hand with this learning curve and motivate them with success stories.
  • Run webinars about how to succeed on social. Webinars are practical and easily digestible content regularly created by the marketing team (in-house or outsourced), covering the specific needs of all of your distributors and their teams. Schedule them with a fixed cadence and announce upcoming events across your channels of communication.
  • Include compliance rules in onboarding. Provide your new distributors with marketing materials enriched with compliance checklists. Meaningful just-in-time learning has been proven to deliver better training outcomes. It’s better to prevent a crisis than to have to rescue your company’s reputation.

6. Get Feedback From the Field

Responding to feedback is an important part of your distributors’ success and scaling processes. It helps improve services and products, determines customer satisfaction, and unifies your distributors through a common idea.

  • Create a community and connect distributors. Uniting distributors in a common casual environment helps you understand them better. It’s important not only to create a community but also to lead and manage it. Spark conversations by asking questions and posting comments.
  • Share company news. Sharing company updates and research gives distributors more insights into brand values, initiatives, achievements, and differentiation. Altogether, this helps distributors communicate brand-approved information.  
  • Encourage sharing of posts and results. Use psychological tactics and add some competition to distributors’ teams. When they see their team leaders flourishing, distributors might get motivated and want to follow in their footsteps.
  • Feedback loops. Ask – collect – analyze – improve your HQ/distributor’s future operations by using positive and negative feedback from the field.

7. Use Technology to Post Securely and Lower Risks

A smart marketing platform, combined with proper compliance training, can protect direct selling companies from regulatory issues. Such a system won’t let users post text containing specific words.  It’ll analyze performance data to see which distributor does what at any given point in time, where they struggle, what they do wrong, etc.

Ensure that it is:

  • Easy and fast to roll-out
  • Enforced with automated compliance
  • Mobile-friendly
  • Backed with cross-network reporting
  • Supported by onboarding and training

Book a demo to learn how PromoRepublic can secure and amplify your brand on social.

Takeaways: 

  • Direct sales companies are uniquely positioned to serve more people than ever before with their remote working environments and social orientation.
  • Marketing leaders should empower distributors to be authentic, but set boundaries, control social media activities, and apply sanctions.
  • Be aware of the FTC’s willingness to go to court for non-compliant messaging. Distributors who are unaware of the FTC’s rules and regulations can go too far with their authentic content and may damage your brand’s reputation.
  • 2022 is the year to focus on training your distributors on digital marketing and compliance while supporting their personal growth.

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PromoRepublic Partners With DirectScale to Ensure Distributors Remain Compliant on Social Media https://promorepublic.com/en/blog/promorepublic-partners-with-directscale-to-ensure-distributors-remain-compliant-on-social-media/ https://promorepublic.com/en/blog/promorepublic-partners-with-directscale-to-ensure-distributors-remain-compliant-on-social-media/#disqus_thread Tue, 21 Sep 2021 10:54:11 +0000 https://promorepublic.com/en/blog?p=13488 PromoRepublic, the leading social selling app that ensures compliance on social media, and DirectScale, the direct sales e-commerce technology platform that monetizes and grows distributors’ influence to generate revenue, are proud to announce their partnership. Together, they aim to equip direct sales brands with a cutting-edge tech stack to boost their distributors’ social selling. Social […]

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PromoRepublic, the leading social selling app that ensures compliance on social media, and DirectScale, the direct sales e-commerce technology platform that monetizes and grows distributors’ influence to generate revenue, are proud to announce their partnership. Together, they aim to equip direct sales brands with a cutting-edge tech stack to boost their distributors’ social selling.

Social media usage is at an all-time high, with 57% of all internet users active on at least one social platform. As social media’s influence continues to increase, American social commerce is projected to reach $79.6 billion in 2025.

Social commerce has transformed social media into a full-scale marketplace where people come for brand research, reviews, shopping, and more. Using intelligent technology in e-commerce can improve targeting, boost average order value, enhance customer experience, and build deeper trust.

Progressive direct sales companies invest in marketing and e-commerce technologies to train and enable their distributors. This amplifies distributors’ social selling and boosts their sales results.

When a direct selling company implements PromoRepublic on top of the DirectScale platform, it amplifies its intended brand voice on social media and enables it to sell more on its custom product pages. The brand’s reputation is safeguarded because each message is checked for compliance before it’s posted, which makes it one of the best MLM software.

How they work together:

PromoRepublic’s social selling app helps HQs distribute branded content and stay confident that every post is auto-monitored for compliance. At the same time, our app simplifies distributors’ social media marketing efforts, like generating buzz and joining promotional campaigns, by providing corporate-approved messages that are ready for distributors to post on any social platform.

Max Pecherskiy, CEO at PromoRepublic:

“To prosper, direct selling companies need distributors who are aware of industry ethics and equipped with the latest tools for personal online marketing. DirectScale, with its configurable management tools, allows distributors to accomplish full-cycle in marketing and sales.”

Watch how PromoRepublic’s social selling platform works:

DirectScale helps you run, know, and grow your direct selling business by providing actionable data-led insights in several areas that help you make the right decisions to increase revenue month to month. It simplifies corporate management with editable commission modeling and unmatched flexibility that allows you to customize almost every part of the platform on your own without even informing DirectScale how you’re customizing it. This includes your e-commerce stores, the distributors’ back office, promotions, product availability, even your compensation plan, and so much more. You can do all this and more without involving DirectScale. Its web portal features include training, tracking stats, data analysis, unmatched communications, prospecting tools, remarketing, shopping cart recovery, and robust reporting with more than 50 built-in reports.

Rodger Smith, CEO at DirectScale:

“We’re very excited about gaining PromoRepublic as a valued DirectScale partner because that solution gives our clients a powerful way to control what information is being shared with their customers. It brings powerful simplicity to our platform, which enables every seller to share corporate-approved collateral through social media with all their potential buyers. By implementing PromoRepublic, our clients are assured that their customers are getting the correct information.”

Implemented collectively, this marketing stack helps both direct selling brands and their distributors leverage unmatched e-commerce functionality for growing online sales and amplifying the influence delivered through corporate-approved social media interactions with customers.

Book a demo and learn more about PromoRepublic.

To learn more about DirectScale or to schedule a demo, visit directscale.com.

PromoRepublic has previously announced an updated product set for confident partner marketing on social.

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Direct Sales Industry Roundup: The Top 5 Stories of August https://promorepublic.com/en/blog/direct-sales-industry-roundup-the-top-5-stories-of-august/ https://promorepublic.com/en/blog/direct-sales-industry-roundup-the-top-5-stories-of-august/#disqus_thread Thu, 09 Sep 2021 10:21:16 +0000 https://promorepublic.com/en/blog?p=13416 Amway Global Appointed a New CMO The # 1 direct selling brand has hired François Renard for the role of Chief Marketing Officer. Renard switched from Renault Group and will be developing brands, products, and digital experiences, inspire loyalty, and empower Amway Business Owners. Excited to see Amway’s future achievements! 2020 Direct Selling Business Report from WFDSA The […]

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Amway Global Appointed a New CMO

The # 1 direct selling brand has hired François Renard for the role of Chief Marketing Officer. Renard switched from Renault Group and will be developing brands, products, and digital experiences, inspire loyalty, and empower Amway Business Owners. Excited to see Amway’s future achievements!

2020 Direct Selling Business Report from WFDSA

The World Federation of Direct Selling Associations (WFDSA) published its 2020 report on direct selling’s global sales. Cosmetics and wellness products together account for more than 62% of category sales, and overall sales results totaled $179.3 billion.

Q & A with Natura & Co and Avon CEOs

J.P. Ferreira and Angela Cretu were interviewed about changes after the acquisition in 2020, addressing pandemic challenges, and managing the world’s fourth-largest beauty company. Don’t miss out!

Rodan + Fields Welcomes New Executives

As part of a “renewed commitment to double down” on its roots as a direct seller, the company hired Laura Beitler as Chief Global Sales Officer (CGSO) and Elana Gold as Chief Marketing Officer (CMO). Both have 20+ years of industry experience and are planning to change more lives together.

Canada’s Direct Selling Is Growing

The number of Canadians signed up as independent sales consultants rose to 1.39 million, up 20% over 2019. Discover more positive statistics from the President of the Direct Sellers Association of Canada.

Recommended Reading

  1. Gordon Hester on how compensation plans correlate with culture. Read the article.
  2. A research-backed approach to communicating a price increase. Read the article in Harvard Business Review.

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Making Online Reputation Your Company’s Next Advantage: 5 Dos and Don’ts for Direct Sales https://promorepublic.com/en/blog/making-online-reputation-your-companys-next-advantage-5-dos-and-donts-for-direct-sales/ https://promorepublic.com/en/blog/making-online-reputation-your-companys-next-advantage-5-dos-and-donts-for-direct-sales/#disqus_thread Wed, 01 Sep 2021 07:23:37 +0000 https://promorepublic.com/en/blog?p=13611 In today’s digital world, reputation is all about ensuring your message is consistent and compliant; not only your corporate one but also millions of posts published by your distributors 24/7. Our guest Katrina G. Eash from Winston & Strawn will join our marketing expert Raakkel Sims to discuss marketing & legal perspectives and main practices […]

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In today’s digital world, reputation is all about ensuring your message is consistent and compliant; not only your corporate one but also millions of posts published by your distributors 24/7.
Our guest Katrina G. Eash from Winston & Strawn will join our marketing expert Raakkel Sims to discuss marketing & legal perspectives and main practices for direct selling companies to maintain and improve their online reputation.

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How dōTERRA HQ Empowers Their Distributors to Amplify Their Brand’s Voice https://promorepublic.com/en/blog/how-doterra-hq-empowers-their-distributors-to-amplify-their-brands-voice/ https://promorepublic.com/en/blog/how-doterra-hq-empowers-their-distributors-to-amplify-their-brands-voice/#disqus_thread Fri, 20 Aug 2021 07:20:43 +0000 https://promorepublic.com/en/blog?p=13607 John Dye, Senior Marketing Director at dōTERRA, will share his strategies and insights on how to increase distributors’ involvement in new product launches, enable distributors to communicate product messages and find new avenues to grow their businesses. Join in with this leader and learn how to become one of the world’s most empowering direct selling […]

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John Dye, Senior Marketing Director at dōTERRA, will share his strategies and insights on how to increase distributors’ involvement in new product launches, enable distributors to communicate product messages and find new avenues to grow their businesses. Join in with this leader and learn how to become one of the world’s most empowering direct selling brands.

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Why Your Distributors’ Social Selling Should Be Compliant https://promorepublic.com/en/blog/compliance-for-distributors/ https://promorepublic.com/en/blog/compliance-for-distributors/#disqus_thread Fri, 06 Aug 2021 07:25:10 +0000 https://promorepublic.com/en/blog?p=13054 In October 2019, the Federal Trade Commission (FTC) announced a case against one of the well-known direct sales companies, its former CEO, as well as two of its top promoters. The FTC alleged that defendants operated an illegal pyramid scheme, made income misrepresentations and provided the means and instrumentalities for its distributors to do the […]

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In October 2019, the Federal Trade Commission (FTC) announced a case against one of the well-known direct sales companies, its former CEO, as well as two of its top promoters. The FTC alleged that defendants operated an illegal pyramid scheme, made income misrepresentations and provided the means and instrumentalities for its distributors to do the same.

Result: 

  • a $150 million fine for CEO
  • a $4 million fine for distributors
  • a direct selling business ban for three plaintiffs

The COVID-19 pandemic has aggravated the number of unsubstantiated claims.

In April and June 2020, the FTC sent warning letters to 16 direct selling companies to address and demand the removal of claims that they or their distributors were making to tap into consumers’ fears during the pandemic.

The warning letters highlighted problematic language and cautioned companies that such activity on social media is unlawful under the FTC Act.

Examples

Acts and practices subject to FTC investigations:

  • illegal pyramid schemes
  • deceptive earning claims
  • unsubstantiated product claims

Lesson learned: When a company acts illegally, defendants – including senior management, promoters, and distributors – may be named personally, face bans, and be required to turn over money they have taken from consumers.

Why do misleading claims appear on social media?

Reason 1.

Distributors want to sell and recruit more by any means. Authenticity on social media is an effective way to cut through all the endless content “noise” and have meaningful interactions with consumers. But sometimes it can go too far.

The direct selling model’s huge advantage is a massive salesforce optimized to become social media sellers generating income for themselves and ultimately increasing corporate sales.  What’s more, social selling’s impact has grown during Covid times, attracting more and more newcomers to social media. Consequently, there’s a greater possibility of non-compliant posts.

Reason 2.

Lack of guidelines, documentation, proper training. When corporations don’t have social media guidelines in place to secure their reputations, they’re walking on a minefield – and they may end up in federal court.  It’s not that distributors intentionally harm their companies, it’s just circumstances.

Top-performing distributors want to be empowered by HQ. They’re ready to obey and follow the rules, but those rules must be clear and known by the teams.

Reason 3.

No effective tools. The best way to protect your company against legal risks is to correct questionable posts before they’re published. Implementing third-party solutions which can filter keywords, ban them from use, or warn authors about their ambiguity is usually a part of a pre-posting compliance strategy.

It’s more effective to track distributors in the initial stage of content production than it is to monitor social media afterward. However, there are tools for post-posting compliance and network monitoring like Momentum Factor.

Steps to zero distributor violations

Social media compliance means following the rules when using social media to engage with the public. The “rules” are a mix of industry regulations, federal and state laws, and company guidelines. If that seems too complicated at first sight, remember that the foundation of your compliance is explaining to your distributors the main principle of consumer protection: telling the truth.

Training.

Establish clear rules of conduct. Claims – by direct selling companies and their distributors – must be non-misleading and substantiated.

Monitoring.

Use compliance tracking software. Use compliance tracking software. The FTC has cautioned direct selling companies that they are obliged to instruct their distributors and monitor them so they do not make misrepresentations. Intelligent software can filter keywords at the pre-approval stage and track networks for illegal content to minimize future manual searches.

Enforcement.

Don’t tolerate non-compliant claims. Unsubstantiated product claims are a serious challenge for the industry. On the one hand, companies want excited distributors. On the other hand, if these excited distributors exaggerate, it can get the company into serious trouble. Proof of efficacy is vital.

More on How to Make Distributors Authentic Yet Compliant on Social Media watch the webinar with Kellye Drye lawyer John Villafranco.

Final Thoughts

Direct selling has had a record year. Despite all the challenges 2020 presented, according to DSA, approximately 80% of direct selling companies grew their revenue compared to 2019.

The FTC keeps on cracking down on direct selling companies participating in fraudulent activities: work-from-home scams, pyramid schemes, and companies that make promises about income opportunities which in actuality cost consumers more than they earn.

How to avoid warnings and cases in the future?

First, recognize the importance of social media compliance. Second, ensure that all claims made are accurate and have proof of efficacy. Third, educate distributors about best practices for product and earnings claims.

Book a demo to learn how PromoRepublic can secure and amplify your brand on social.

The post Why Your Distributors’ Social Selling Should Be Compliant appeared first on PromoRepublic Blog | Insights for Franchise & Multi-Location Marketers.

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PromoRepublic and Verb Partner to Empower Direct Selling Brands to Increase Customer Engagement and Sales Conversion Rates in the Digital Era https://promorepublic.com/en/blog/promorepublic-and-verb-partnership/ https://promorepublic.com/en/blog/promorepublic-and-verb-partnership/#disqus_thread Wed, 28 Jul 2021 11:55:56 +0000 https://promorepublic.com/en/blog?p=13005 PromoRepublic, the leading social selling app that ensures compliance on social media, and Verb Technology Company, Inc., (Nasdaq: VERB), a leader in interactive video-based sales enablement applications, including interactive live stream, e-commerce, webinar, CRM, and marketing applications for entrepreneurs and enterprises, are proud to announce their first-ever collaboration. Together, the companies aim to equip direct […]

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PromoRepublic, the leading social selling app that ensures compliance on social media, and Verb Technology Company, Inc., (Nasdaq: VERB), a leader in interactive video-based sales enablement applications, including interactive live stream, e-commerce, webinar, CRM, and marketing applications for entrepreneurs and enterprises, are proud to announce their first-ever collaboration. Together, the companies aim to equip direct sales brands with a cutting-edge tech stack to boost their distributors’ social selling.

Rise of direct selling

The direct selling industry is booming despite the Covid pandemic. According to DSA, direct retail sales grew 13.9% in 2020. Meeting demand despite lockdowns became possible with the adoption of social media as an additional selling channel.

GWI states that 54% of people connected to the internet actively use social media. They are researching brands, looking for recommendations, and making purchasing decisions. Their number is growing – anchoring new approaches for the buying process.

Tools to thrive

Direct sales companies that invest in social selling apps for distributors’ enablement expect to boost sales and extend retention results. No matter if the communication happens with large audiences or 1-to-1 conversations.

Implementing Verb and PromoRepublic into an enablement tech stack allows direct sales companies to amplify their brand voice on social media, transforming every distributor into a sales superstar along the way. Your brand reputation is kept intact because each message that goes out is checked for compliance.

How it works together:

PromoRepublic’s social selling app helps HQ distribute content assets and stay confident that every post is checked for compliance. At the same time, it simplifies distributors’ social media marketing efforts like generating buzz and joining promotional campaigns.

Max Pecherskiy, CEO at PromoRepublic

“Social selling made direct sellers came out winning from the pandemic. Joining forces with Verb makes the field even more resilient and profitable. Implementing enablement tools, direct selling brands will be able to scale smoothly, grow more loyal customers, and reduce compliance issues.”

Watch how PromoRepublic’s social media marketing platform works:

Verb’s innovative sales enablement platform supports distributors’ sales field and multiplies conversion rates with automatic sampling, mobile LMS, interactive videos, and real-time analytics.

Rory J. Cutaia, CEO at Verb

“We are very pleased to work with PromoRepublic in providing industry-leading technology to support their clients in managing their customers and content. Our interactive video-based tools create a friction-free sales experience that can increase customer engagement while providing real-time analytics for more effective, targeted follow-ups that drive sales conversion rates, all remotely from their mobile or desktop devices.”

Watch how Verb’s sales enablement platform works:

Implemented collectively, such a marketing stack will help your distributors develop and expand their business from the top to the bottom of the funnel.

Book a demo and learn more about PromoRepublic.

 PromoRepublic has previously announced an updated product set for confident partner marketing on social. 

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PromoRepublic Has Updated Its Product Set for Partner Marketing on Social https://promorepublic.com/en/blog/product-set-for-partner-marketing-on-social/ https://promorepublic.com/en/blog/product-set-for-partner-marketing-on-social/#disqus_thread Wed, 02 Jun 2021 15:07:27 +0000 https://promorepublic.com/en/blog?p=12502 How we help brands thrive in the current boom in the gig economy and digital transformation. The explosion of the gig economy People have been earning in the gig economy for years, but COVID-19 has pushed this tech-reliant way of working much further. From delivery service to education, gig workers have provided much-needed assistance during […]

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How we help brands thrive in the current boom in the gig economy and digital transformation.

The explosion of the gig economy

People have been earning in the gig economy for years, but COVID-19 has pushed this tech-reliant way of working much further. From delivery service to education, gig workers have provided much-needed assistance during lockdowns all over the world.

Many Fortune 500 CEOs agree that the gig economy is the new future of work. Research from Monster shows that a whopping 92% think that now is the time to look for gig work.

The rise of the gig economy makes one thing clear: the stage is set for a partner-based business model with brands competing for gig workers.

Direct sales companies like Amway, Oriflame, and others are booming despite the Covid pandemic. According to DSA, direct retail sales grew 13.9% in 2020, with a 13.2% direct-seller increase over 2019. Meanwhile, the franchise market is projected to recover from Covid in 2021, with total franchise establishments growing at a rate of 3.5%, according to the International Franchise Association.

The acceleration of digital transformation

A recent CEO survey conducted by Fortune/Deloitte showed that 77% of CEOs accelerated their digital transformation plans due to Covid.

Сompanies in direct sales and franchise industries are following the trend and allocating budgets to online as well. Thus, investments in technology, particularly for marketing purposes, are growing, helping enterprises switch to digital faster. According to BIA, national multi-location brands and franchises in the U.S. will increase spending in local marketing by over $17 billion over the next 4 years.

How can such organizations equip their distributors, locations, or franchisees with tools for consistency, compliance, and amplification leading to instant sales results online?

Social media is the key to succeeding in the gig economy.

Today 4.2 billion or 90% of people connected to the internet use social media. No wonder the buying process has changed.

The stats tell us that 83% of consumers trust recommendations from their peers over advertising. Still, the global pandemic has reduced their opportunities for communication. 75% of them went directly to social media to find recommendations and make their purchasing decisions.

Marketing tactics and techniques are constantly evolving. And as technology advances, so do the ways brands promote their products and services. If your team aims to increase its brand awareness and drive sales, partner marketing on social cannot be ignored.

Enterprises that invest in enabling their partners with social media management tools can expect to achieve a higher ROI and gain a larger market share.

What partners expect from gig economy companies

Implementing partner-based sales within social media, especially in direct sales and franchise industries, requires meeting the gig workforce needs, such as:

  • ready-to-use marketing & sales collateral;
  • intuitive plug-n-play tools to promote and sell company products or services on the go;
  • onboarding & training that will help workers get started and sell more right away.

To support partner-based enterprises in meeting these needs, PromoRepublic is launching a new set of products.

They are built to help:

  1. Confidently manage brand consistency across all markets and provide up-to-date compliant content for teams and partners.
  2. Empower partners with an easy-to-use mobile app packed with content to dazzle while representing brands on social.
  3. Amplify brands’ voice by achieving posting automation, promotional campaigns, and tracking results across the network.

Meet PromoRepublic’s Enterprise Product Set to secure brands, empower partners, and amplify marketing results while ensuring one-click-confidence on social.

Max Pechersky, co-founder and CEO at PromoRepublic, is sharing the news:

“Our mission is to empower brands for success on social media by arming them and their partners with easy-to-use technology.  Riding the gig economy trend, we’ve updated our product set to address the specific needs of franchise and direct sales enterprises in becoming innovative and digitalized. Now it’s easier for them to amplify their marketing results with technology for one-click-confidence on social.”

How PromoRepublic for Enterprise enables companies with a partner-based sales model

PromoRepublic is a social media marketing platform that helps brands manage partner marketing on social media easily and confidently. Our tools are robust for HQ but intuitive for end-users.

PromoRepublic is already trusted by 50,000+ franchise and direct sales companies, marketing agencies, small businesses, and individual representatives. More info on specific solutions for direct sales and franchise brands can be found here

Book a demo to talk to our product experts to see how PromoRepublic can work for your brand. 

Previously, PromoRepublic announced in Forbes, that it had raised $1.5M to help corporations keep their sales messaging consistent.

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