Today’s post is a bit different because I’m hoping you’ll engage here in the comments.  (Seriously…don’t leave yet.  Take 2 extra minutes and comment.)  You see, recently I’ve been working with a number of clients that are thinking about how to make their Facebook Fan Page engaging.  Now what you’ll ultimately choose as the best strategies for your brand will be determined by your goals for social media.  For some, it may be an increase in sales.  For others, it may simply be a communication vehicle to connect better with the existing sales force.  And for others, brand recognition is the goal. But what I want to explore today are the things that make YOU, my readers, come back to a fan page on Facebook.

We’ve seen a lot of direct selling companies running very successful campaigns through their Fan Pages.  I loved Scentsy’s “You’re Getting Warmer” campaign that they promoted through their Facebook page (and for those paying attention, yes that IS our fabulous guest poster Dave Sattler in the picture).  And Creative Memories gives a TON of content and project ideas that are exactly what their target market is looking for on the Creative Memories Home Office Facebook Page.

We spend a lot of time talking about making the content on a Page valuable to the target market.  And it also needs to be fun and engaging. But what I would love for YOU to share today are the things that you’ve seen, and liked on Fan Pages (direct sales or otherwise.)  What have you participated in?  Which pages do you regularly return to (and why?)  What, in your opinion, are the most successful Fan Pages out there, and why do you think so?

Please take 2 minutes and share your thoughts.  Our collective wisdom can help a lot of folks in their decision making process…maybe even your company!  Thanks!

When companies in most industries begin to use social media marketing, one of their first priorities is to develop is a group of brand evangelists.  These are people who love the company, and will staunchly promote and defend it on the social web.  A brand that is able to develop and mobilize its brand evangelists has a real asset, and a competitive advantage.  After all, a company can’t be the ONLY source of the positive information shared. When other people also talk positively about your company, it’s more believable.

This is one place where direct sales has a real advantage over other industries when it comes to social media marketing.  We already have brand evangelists BUILT IT, in the form of our independent sales force.  What companies are working so hard to develop in other industries, WE ALREADY HAVE.  The question is, are you using it?  Are you showing your sales force how to effectively promote your message (instead of spamming)?  Are you equipping them with the tools to effectively do so?

Most companies in other industries are at the mercy of whatever their evangelists choose to say, if they can develop them at all.  In this industry, we already have our evangelists…our sales force, and we have the ability to provide them with everything they need to share our message successfully.  Our brand evangelists have a vested interest in sharing the message well…after all, when the company succeeds, they succeed too.  But if we neglect our responsibility to mobilize our brand evangelists properly, we’re walking away from a tremendous opportunity (one that companies in other industries would gladly pay a lot for.)

Direct selling companies, make sure you’re training your sales force on how to use social media properly.  This is critical!!!  And then be sure you’re providing the assets that your sales force needs to spread the message effectively.

You have a tremendous asset and opportunity in front of you.  Don’t waste it!!!

Your thoughts?

Image Credit: Roland

From Jennifer: W00t!  It’s that time again.  Guest column time!  Today’s post is from my friend Dave Sattler, Web Marketing Strategist over at Scentsy.  Now ya’ll better listen up, because Dave has some GREAT advice for you today.  Have you ever wondered what your home office REALLY wants to tell you about how you’re using social media?  It’s probably something like what Dave has written for you today.  It’s great advice, so pay attention!   This is how (and WHY) to use all those great web assets your company is providing you with.

What the Web Marketing Lead of your Direct Selling Company Wants to Tell You
by Dave Sattler

1. Even online it’s still just about relationships.

Don’t think that it’s different because it’s online. Some people think it’s some kind of wild, wild west or something; you still have to be personable. If you’re using Facebook, LinkedIn, Twitter, or my most recent fave, GetGlued, to connect, then actually reach out and connect. Get to know me; tell me about yourself and share. Don’t spam me or my contacts with sales pitches. Don’t think that I will recommend you or your product to my friends or network if I don’t think you’re remarkable. I’ve developed my network through trust and am not willing to betray that trust by recommending something to them unless I think it truly “Rocks the Casbah.” (The Clash)

Anyone that has ever run a small business knows that it is all about making connections and expanding your network. The internet can be an amazing tool to expand your network and meet more people in your industry. Think of the same best practices you’d use when at a leads group or a chamber “Meet & Greet” and apply those to connecting online.

2. Add Value.

Value in the form of relevant content is the biggest magnet for attracting visitors that actually convert on the web. There are 2 parts to the adding value equation:

1. Create content that is valuable to the web community.  Whether that value is humor, tips & tricks, vlogs about your topic, handy couponing tips, or best practices for whatever it is that you drives you.
2. Don’t interrupt the conversation with shameless plugs – you add no value. For our sake and yours – making yourself an advertisement and not adding any value to the conversation is making yourself into an advertisement not unlike the ones that we all TiVo. You don’t want to train us to ignore you. For Direct Sellers of a company with a Facebook fan page: don’t post your URL on our fan page. If you think it drives traffic to your site you’re wrong. If you consider it to be “advertising” your business, then think about the message of your advertisement:

“Hi. I’d like to interrupt the conversation you’re having here and let you all know that I am such a good distributor of this product that I can think of no better way to find new recruits or sell products than by desperately posting on my company’s wall. Join my team now!”

If you think there’s an SEO advantage to spamming links across the Facebook-o-sphere through comments, go back and read #1.

3. Leverage what we publish; that’s why we publish.

Many companies publish videos on YouTube or other sites that are easily embedded on a blog or can be linked to and posted on your Facebook wall. We produce these for you so that you can share these as much as you’d like. It’s cheaper than handing out a bunch of DVDs. Comment or Like the things that we publish on our Facebook fan page, Twitter, YouTube, etc. – our intent is to help you grow your business by giving you top-quality digital assets that you can share with your contacts in a fun, casual way. Then your contacts can pull that content when they want to, and have a warm experience getting to know your product/business rather than the typical cold or push-style introduction that isn’t nearly as effective for you, and only drives people away.

Your company’s presence on Facebook, YouTube, Twitter, LinkedIn, etc. is designed, in large part, to help you evangelize your business and “brand badge” yourself. We dedicate resources to putting together quality assets in these platforms and making them something that you’d like to appropriately use to connect with your network.

3. Be a brand flag bearer.

At Scentsy, we talk about the brand as being democratized. We believe that the brand perception is best carried forth by our evangelists – whether consultant or a customer. This new marketing relationship prescribes certain expectations for the company and the evangelists. In short it’s our job to produce a relevant product, amazing brand experience, and help you share the brand, and it’s your job to influence the relevancy of the product and carry the brand promise through to the end-user. Take a look at what Apple has gone through. Back in the day, Apple products, believe it or not, were less than relevant while PCs were; there was more software for PCs and the price point was more attractive to users. Enter Guy Kawasaki who quickly mobilized brand flag-bearers to respond to what was being said in the media. The brand flag-bearers – not a PR team – responded to the media. Be a part of that relationship with your brand.

There is a certain, newer network marketing company (that shall remain nameless) that has sent all its recruits out with the same tweets.  Seriously.  If I see one more tweet saying “Unlike ANYTHING I have ever seen before…” or “There is a mass movement in the network marketing industry…” or how a certain tycoon is “the greatest thing to ever happen to network marketing,” I may just have to throw my mouse at them.  And this brings up the issue of direct sales companies providing the sales force with canned content for social media platforms.  If EVERYONE uses the same thing, I believe we create the counter effect of what we want.  We become a laughingstock, rather than a compelling argument.

It’s a challenging thing to contemplate.  On the one hand, companies are working very hard to present a consistent image to consumers.  They want to create a certain perception of the brand, and in print media, providing templates and wording has worked extremely well.  But what happens when this is taken to the extreme?  What if EVERYONE in your company is saying exactly the same things in all the same places?   What does that do for your credibility? This isn’t localized anymore.  And at some point, your market is going to say “uncle.”

The evolution of social media has made it more difficult for companies to mandate consistency.

So what is the solution?  Can we still provide templates for the field?  I do believe that sample templates and guidelines help a bit.  But they must be customizable, and come with training on how to integrate a consultant’s personal brand into the marketing messages.  (This also plays into the issue I talked about last week, about the software that pushes canned content into distributor Facebook streams.)

What are the types of content that companies may want to provide for social media?  Here are a few ideas:

• Blog ideas: Rather than provide canned articles, provide a list of possible topics, with links to source materials where consultants/distributors can educate themselves on the topic before writing.
• Status Update ideas: Think about the campaigns your company is running that month, and provide a list of topics, again, that consultants/distributors can reference.  While these shouldn’t be used word for word, you can provide both good and poor examples for consultants to reference.
• Sample Ads: Images and wording for advertisements that can be used within Facebook, AdSense, on selected websites and blogs, etc. can also be a helpful resource.  Especially important is access to professionally-designed graphics and imagery.  Again, consultants/distributors should be able to add and customize the verbiage on these to make them relevant to the individual consultant’s brand.

I also think our companies need to do a better job educating the sales force on marketing techniques.  How does a consultant create and communicate a personal brand?  How do you customize company-provided marketing resources in order to represent the brand well, while communicating your message?  How do we avoid filling the marketplace with the same messages over and over and over?

We’re not playing in the same playground anymore.  Canned messages, in and of themselves, are less effective when everyone can see everyone’s messages.  Direct sales companies need to get better at helping consultants and distributors customize the message, while still providing enough guidance to maintain public portrayal and perception of the brand.

Does your company provide templates?  Can you customize them?  What kind of resources do you have (or wish you had) to help you market your business online?  Would love to read your ideas in the comments below.

As a social media consultant that works with a lot of direct selling companies, advising them on strategy and tools, I also get approached by a lot of software vendors who want me to recommend their products to my clients.  And to be honest, I’ve been pretty impressed with the quality level of what I’ve seen.  There are mobile apps that allow you to place orders and track your downline right from your mobile device.  There are apps that allow your company to provide you with content that you can use in your Facebook profile with just one click.  Lots of very cool stuff.

But there is a common denominator with many of these tools, and to be honest, it’s something that worries me.  Some vendors have shown me tools that push content into Facebook, and the demo content is CHOCK FULL of spammy, advertising stuff.  We all know that a content marketing strategy is what works in social media.  We don’t want to be hurling spam at our friends…after all, our social networks are not an opt-in list.  If these application vendors are counting on companies knowing how to do this right, right out of the gate, I think we’re going to have another problem on our hands.  Because if a direct sales company provides all its distributors with a tool that knowingly pushes business messages out through profiles, every single person who uses that tool could be shut down.  After all, it’s against Facebook Terms of Service to post direct business messages through a profile.

The problem these tools is supposed to be solving is to provide appropriate status updates to distributors who may not know how to do that themselves.  But if these messages are overtly business-y, these tools cause more problems than they cure.

For all companies that are considering such tools, make sure that the developer of the application has gotten approval from Facebook, that it can be used to push messages to the profile.  Facebook MUST be on board, to avoid problems down the line.  And for distributors/consultants, make sure that the messages you’re being provided, should your company choose to use such tools, are content-driven, and not sales/recruiting-driven.  There is a difference, and the profile is all about providing value, not driving a sale or recruiting directly.  That comes later.  If you feel the messages are too sales-y, tell your company.  The last thing we want to see is every consultant in the company losing their Facebook account due to violations of the Facebook Terms of Service.

In theory, I really like the idea of the company being able to provide content that distributors can pass along to their social networks.  However these messages MUST be crafted by people skilled in social media marketing, who understand the difference between advertising and social networking.  And application vendors have to be on the front lines here, providing appropriate demo content that illustrates how to populate these tools well.  And that means the vendor must understand our business model, or bring on someone who does.  Every step of the process, from vendor to company to consultant, must understand what is appropriate and what is not.  Only then will these tools provide value, and benefit the industry as a whole.

Would love to know what you think about all this.  Is your company using tools like this (they’re pretty new, and don’t have a lot of market adoption yet)?  Would you use it if your company provided it?  Looking forward to reading your comments below.

From Jennifer: Are you enjoying this guest columnist series as much as I am?  I am so absolutely thrilled to be bringing you the perspectives of some of the “movers and shakers” who are using social media so effectively within our direct selling industry.

Today’s post is from Beth Dornan, over at Amway.  In her last post, The Online Playground, she shared with us some of Amway’s strategies for engaging in dialog about the Amway brand.

Well Beth really “gets” social media, and how you can use it effectively as a direct seller (I believe I’ve found a kindred spirit!) If you haven’t yet started following her on Twitter, you should be!  Today’s post gives some great advice on what you should keep in mind when using social media to build your business.  Enjoy!

The 10 Ps
by Beth Dornan
You’ve got a Facebook page and a growing number of “friends.”  You have a Twitter handle and a handful of followers.  You may be LinkedIn and FourSquared.

Now what?

Many people get excited about the idea of social media or having a site and friends, fans, or followers, but quickly lose interest because maintaining an active social media presence takes time and effort.

I’ve boiled what I’ve learned in the past seven years that I’ve been blogging and doing social media for Amway down into 10 “Ps” that will help any direct selling representative seize the power of social media.

Make it personal. Don’t be afraid to share what inspires you outside of your business.  You may find you have more common ground with your customers once they know a bit more about you.

I have two children, have been a “room mom” and Girl Scout leader, and love to cook.  All have been fodder for my blog posts and Facebook and Twitter updates.  In most cases, I’ve found a way to link the learning in a story back to business.

But keep it professional. You can be warm and friendly while still being professional.  And part of that professionalism is abiding by any company rules or policies governing your social media presence.

Be polite. Follow the golden rule – treat others as you would like to be treated.  That means respecting the views of others, even if they differ from your own.

Keep it positive. When you’re online, it’s not just your reputation on the line – you’re the face and voice of the company you represent and your fellow distributors.  Keep your interactions positive, supportive, and helpful, because the impression your friends and fans have of you may become their views of the company you represent.

Be practical. In deciding where to focus your time and energy, follow your customers’ lead. If they’re on Facebook, that’s where you should be.  If they don’t Tweet, then rethink the value of cramming your thoughts into 140-character Twitter posts.    Read Jen’s post on “Avoid the Dreaded Social Media Time Suck” for tips on forging a social media time management strategy.

Live in the present. Let your friends know what you’re doing, whether it’s dropping off a customer order or listening to a podcast about a new product.  Respond to your customers’ status updates – ask the customer who’s sitting at his daughter’s soccer game if her team is winning.  Use apps to remember birthdays and anniversaries.  This shows your customers you’re interested in their lives and what they’re doing – not just in making a sale.

Be prolific. As people start to follow your updates, keep them fresh. It’s better to do one or two posts a day than 20 in one day and nothing for the next week.

Don’t be afraid to be a little provocative. Ask questions of your friends or followers.  Share information in a way that leads your customers to want to know more. Instead of talking about a new lipstick shade, let your customers know that you’ve just found the lipstick equivalent to the little black dress.  Who wouldn’t want to know about that?   But stick to what you know.  Don’t exaggerate your success or that of anyone else.

Show your passion. Let your friends or followers know what drives you – whether it’s your son’s hockey team, your quest to lose weight, or why you’re building your business.

Be prepared. Not every social media interaction is going to be positive.  You might encounter friends of friends or followers who are critical of the company you represent or have had a bad experience with one of your products.  Express your opinion without diminishing their experience…”I’m sorry our product didn’t perform to your expectations.  I hope you’ll contact customer service for a refund.”  Or if someone is critical of direct selling in general, you might respond with “While millions of people in the U.S. look to direct selling for additional income, it’s not for everyone.”

Likewise, realize that not every customer will be using social media, although millions are.  Just like direct selling, social networking isn’t for everyone!

Beth Dornan, Social Media/Digital Public Relations Lead for Amway Corp., was one of Amway’s first bloggers.  She also led the strategy and team that created the company’s blogging portal, the Opportunity Zone, and other ground-breaking social media efforts.  Today Beth manages Amway’s Media Blog, which shares news from the world of Amway with news media and the company’s distributors and consumers.  Beth has more than 25 years’ experience in journalism, public relations, and social media.  She blogs at http://mediablog.amway.com and http://amwayglobalinsider.opportunityzone.com/ and can be found on Twitter as @BethDornan.

It may be because social media is the “new and cool” thing, that we tend to put it into its own box, and think of it as something extra to add to a direct selling business.  But the fact of the matter is that social media is something that should be integrated into activities that you’re ALREADY DOING.  Think about the closing technique I explained this Monday.  Yes, you’re using social media to support that customer and generate reorders, but the technique is used when closing an order in person.  We need to stop thinking of social media in isolation, and see how it can support our daily activities.

Here are just some places that social media can be integrated into what you’re already doing:

• Host Coaching – Schedule some of your follow ups with your hostess leading up to the party via Facebook.  Many direct sellers have reported that they get hostesses to respond on Facebook when they won’t return a phone call or email.
• Networking – At every event where you meet people face to face, exchange social networking information.  (I love this article about “bumping phones” to get connected.)  Then, add that person to friend lists so you can stay connected, and also find out when that person will be in the same locations you are using TripIt on LinkedIn, and schedule follow-up meetings.
• Coaching Calls – You’re going to talk to your downline anyway…why not make it face to face using a free platform like Skype (especially if they don’t live close to you)?  It’s the next best thing to meeting over coffee at Starbucks.
• Team Meetings - Live team meetings rock.  It’s a place to get everyone plugged in, on the same page.  But what about those people that can’t attend live?  Do they just miss out?  Or try to make out what people are saying with a plugged in speaker phone in the middle of the room?  Why not focus a webcam on the meeting, and broadcast the meeting live on Ustream?  Then everyone can participate, even if they can’t get there in person.

Marketing your business is important, and social media is one part of that.  Social media tools can also help you with many of the other activities you do every day for your business.  Think about the tasks you do regularly, and then review the social media tools available to you.  In what ways could social media make you more efficient and effective?

How do you use social media as part of your overall business activities?  Would love to read your tips in the comments below!

Image Credit: Rhett Maxwell

Do you know how many times the average customer orders from a direct seller?

1.1 times.

Does that shock you?  It should!

Is it because products from direct selling companies are inferior?

No! Direct selling companies sell some of the best products you can find.

Then why don’t people reorder from us?

Because we don’t make it easy.

Think about it…when someone runs out of a product we’ve sold them, or wants something else, what are they more likely to do?  Go and try to dig out that paper receipt you left them with that has your phone number on it? (Not likely.)  Or will they run to Target or Walmart and get something comparable (even if they like your product better?)  Of course they’re going to run to the big box store.  Why?  Because the process is easier, and predictable.  They know exactly what will happen….they’ll go to the store, pick out what they want, pay for it, and come home with it.  Even though it may be more effort than shopping with you, it’s easier mentally.  There’s no uncertainty.  If we don’t make it easier for our customers to shop from us than from the big box store, we’re going to lose to them every time.

Fortunately, social media makes it easier to provide our customers with an easier and more predictable experience that can result in more reorders for your business.  Here’s are a few ideas on how to do it:

• Invite every customer you work with to connect with you on Facebook.  Add them to a special Friend List so that you can reach out and touch them regularly (commenting on their updates, etc. Not hitting them with sales-y stuff.)
• Create a customer group on Facebook, and invite every customer to join you there.  Offer tips on using your products, special incentives and discounts, and fun discussions.  Send out a message from this group at least once a month, letting folks know what’s been happening in the group, and inviting them to come back and check it out.  Set up a Memorable Web Address for your group in Facebook so your customers can get there with one click (include the link in your monthly message.)  And include all your contact/reorder information in the group info.
• Part of your closing technique with each customer (at the point of sale) should include a description of what the reorder process looks like.  For example, “Should you need more of this, all you need to do is visit my website or give me a call – this information is all easy to access from the Facebook group – and you can place your order right then and there.  Once you order, you’ll have the products delivered to your door within 2 weeks.  It’s easy and effortless.  And if you would like some personal shopping help, I am more than happy to talk with you about your needs, and make suggestions.  Simply give me a call or reach out to me on Facebook.  If you give me your email, I’ll make sure we’re connected there.  I want to make your process as simple for you as possible.”
• In your customer group, make sure you describe the reorder process on the wall, as well as on the discussion board, so people understand exactly what they need to do and how long it will take.  They need to know where the products will be shipped, as well.
• Make sure every customer gets a monthly, content-driven newsletter (not just ads) that provides them with value. Within it, have a “Need more products?” box with a link to a page (not post) on your blog that describes the reorder process, a link to your website, your email, your phone number, a link to connect on Facebook, and a way to connect with your customer group on Facebook.

People reorder from Amazon.com and big box stores ALL THE TIME.  If they love your products (and how could they not?) then they should be reordering from you too.  But it’s up to YOU to make the process easy and predictable.  They’re NOT going to dig out the receipt. I know that it’s physically impossible to call every single customer on your list every month or two if you’ve been in this business for a while.  But that doesn’t mean that anyone should fall through the cracks.  Instead, use social media to make the reorder process easy and effortless for customers, and watch your reorder business soar!

Now these are just some of my ideas.  How have you been using social media (or face to face techniques) to increase reorders?  Would love to read your ideas below in the comments!

This week I’ve had a few folks that thought it was appropriate to advertise their businesses on my Facebook wall.  Yet I think I see where the confusion came from, because we WERE talking about their company, and commenters on my wall expressed interest in the product line.  Since these folks who expressed interest clearly did not have a consultant, a few enterprising folks thought it would be appropriate to post their businesses to my wall, in hopes of gaining these folks as customers.

So what should they have done in this situation?

Again: I had very clearly talked about my love for a particular direct selling company’s product line.  (They happen to be a corporate client of mine, but despite that I would have rhapsodized about these products…truly unbelievable.  That’s one of the reasons I love direct sales so much…we have the best products in the world!)  Some folks commented on my status update, and it led to the fact that the only place you can get these is through a consultant, not the grocery store.

Now if you were a consultant for this company, how should you approach this?

Well, one consultant simply put a comment that if people needed anything, she would be glad to help them.  While I thought twice about it, I allowed it. Why? Because there was no link attached, and people would need to contact her personally to find out more.    In fact, I did see that happen.

Another consultant with the same company posted a link to her catalog on my Facebook wall.  Now that I wasn’t so cool with, and took down.  Why? My wall isn’t a place for other people’s advertisements, there was a link attached, and it wasn’t part of the conversation.  This link made it look like I was endorsing one consultant over another.  And that’s NOT OK.

However there was a better approach that both of these well-intentioned folks could have taken.

What they SHOULD have done is, within the context of the conversation, talk about how much they love their company, and put it in the context of my original post.  For example: “You love product X? You should try product Y! They just told us it’s coming out this spring and I can’t WAIT to share it with my customers.”  Then, they should have sent a friend request, along with a private message, to each of the folks expressing interest, providing their link IN PRIVATE and letting them know they’d be happy to help them with anything they’re interested in.  Perhaps even commenting on what they saw the person said in response to my original post.  That way, it becomes a one-on-one activity that does not put an unwilling participant (Me!) in the middle of your advertising.

It is never OK to advertise your business on someone else’s Facebook profile wall.  It puts your friend in an uncomfortable situation, and it is inappropriate.  There are still ways to find new customers, without losing friends in the process.

Have you experienced this?  How have you approached it?  Would love to read your comments below.

Image credit: Darcy Norman

OK everyone, this is a really important post, so put down whatever you’re doing and listen up.  I’m giving you my *serious eyes.*  I mean it, pay attention.

If you are in a direct sales or network marketing company, your policies and procedures forbid product claims.  Don’t believe me? Go read ‘em.  Trust me, it’s in there.  Especially if you sell any type of product that is supposed to go in or on the body, this is HUGE for you.  Companies AND their distributors (yes, you read that right…distributors too) have been fined MILLIONS of dollars for making improper product claims. This applies to all kinds of things: what you post in a blog, customer testimonials, statements on your Facebook page…all of it.

Spencer Reese

And the thing about social media is that the alphabet soup of all those regulatory bodies (FTC, FDA, etc) can easily find out when you’re making those claims.  Even if you are absolutely convinced that your product cured your cancer, you can’t say it.  Why not?  Well, I decided to ask my friend and colleague Spencer Reese, direct sales lawyer extraordinaire (if you’re a direct sales company in need of a law firm, check out Grimes and Reese at http://www.mlmlaw.com).

Here’s what I learned.

First, let’s talk about what a product claim actually is.  Essentially, you can’t state that your product can diagnose, treat, cure, or prevent disease, unless your company has a scientific study to back it up. If your company DOES have that study, your product is classified as a drug and has the proper labeling. And those studies cost millions of dollars.

So what can you say?  You CAN say that your product can “help maintain or support a system of the body,” so long as a scientific study has been done to prove it, and the statement has been filed with the Food and Drug Administration (FDA) within 30 days of when the claim is made.  How will you know if that has happened?  If your company has printed it first, or told you that you can say something.  If the statement has NOT been filed with the FDA, then that statement does not get the “safe harbor” protection created for supplements, and your product REQUIRES drug labeling.  And drug approval is a process that requires MILLIONS of dollars.

Let’s put this in terms of what you do daily.  If you make a statement about your product that has not been filed with the FDA, and the FDA finds out, the FDA could require your company to stop selling that product and seize all the stock of that product.  Seriously.  And then your product can’t help anybody.

And we haven’t even started talking about the Federal Trade Commission (FTC) and the Department of Justice, because they can get into the act too.  If the FTC determines that there is no competent or reliable scientific evidence to support your claims (as in, no scientific studies done), then there can be uber fines, and they may also require your company to take all the profits they’ve received from the sale of that product, and give it to the FTC to be used for “consumer redress.”  Don’t think it can happen?  In one case, according to Reese, not only was a company fined millions, but the top distributor was also fined $1 million, and the 2nd distributor was required to pay $500,000 in fines.

So what about customer testimonials?  You may have a client who is absolutely convinced that it was your product that solved his or her problem (be it obesity cure, hair growth, fewer wrinkles, dandruff treatment, removed acne scars, health issues, etc.).

The issue here is that from the consumer standpoint, the consumer doesn’t have enough evidence (according the the FDA and FTC) that your product is what actually cured the problem. Is there evidence that the product was absolutely what cured the problem?  Was the customer doing anything else about the problem at the same time? As a consumer (or distributor for your company) you just don’t have enough information.  Chances are you’ve done other things, too, that also contributed to the cure.  You need science to back up the causal relationships.  You have to go through clinical trials that drug companies go through (which cost millions of dollars) to eliminate all the other possibilities that may have contributed to the cure.  You need scientifically substantiated information.  Anecdotal evidence is not enough.

Your best bet with any testimonials you want to publish (and no matter where you post these testimonials online, it’s considered “published”) from your customers is to run them by your company first.  Your company HAS to have a scientific study to back the testimonial up before you’re allowed to publish it.  If they don’t have one, no matter how sure you are that it’s accurate, you simply cannot use it.  And HOW it’s phrased matters too.  If your product is not classified as a drug, the testimonial has to fall within the “structure/function” area we talked about earlier, which is where you have scientific evidence that your product supports the healthy function of a body system, rather than curing anything.  Your company really needs to review everything in order to confirm that it’s in compliance.

To stay safe, don’t allow your customers to publish testimonials on your sites either (neither your own nor your company’s.)  This includes the company Facebook Page.  If they put them there, and they don’t comply with what you’re allowed to say, take them down.  You can be held liable for everything published to a site designed to promote the company.  Your best bet is to have a policy listed anywhere the public can comment or provide testimonials in public, and then be sure to police it, taking down anything that is not in compliance with the law.

And here’s another layer to this…the FTC in December published new guidelines with regards to product testimonials. (You can read about them here: http://www.ftc.gov/os/2009/10/091005endorsementguidesfnnotice.pdf) You USED to be able to say that results were not typical when presenting a testimonial, if it was true but it was not the average results with your product.  Now, if a testimonial is outside generally typical results, you must also disclose what typical results are as part of the testimonial.  What can be generally expected by the population?  Studies have to be very carefully designed so you can make appropriate disclosures.  So if you don’t have typical weight loss results studies for sedentary women in their 40’s, you can’t publish a testimonial from a sedentary woman in her 40’s that lost vast amounts of weight with your product.  That’s the law.

Direct sellers that need to be most careful with this are those that sell products that are put into or on the body.  Most typically, this includes people that sell health and wellness products, weight loss products, and cosmetics/skin care.

I’m telling you all about this today because with social media, we sometimes think that what we say falls under the same umbrella as things we say in person.  Now I’m not saying that you should ever make unsubstantiated product claims.  But when those claims are PUBLISHED ANYWHERE ONLINE, they can go much further than you think.  There is written proof that you’ve said them.  And it can harm you, your company, and every distributor in your organization.

Don’t be the person that prevents your company from selling an incredible product.  Stick within the realm of what you’re allowed to say, so everyone can enjoy the benefits of your product line.  Everyone will be better off in the long run.

Got it?

Special thanks to Spencer Reese of Grimes & Reese for his help in writing this article.

Spencer Reese graduated from the Washington University School of Law in 1986. He began practicing law in the areas of environmental law and commercial litigation in Boise, Idaho.   In 1992 Spencer joined the legal department of the direct selling company Melaleuca, Inc., and in 1996 he and his partner Kevin Grimes formed the firm Grimes & Reese where his practice is limited to providing legal services to direct selling companies and the dietary supplement and cosmetics industry.

Spencer has assisted hundreds of young and start-up direct sellers navigate their way through the regulatory maze of the FTC, the FDA, and the states as they set up their programs and prepare to launch.  He also regularly works with many of the biggest names in the industry on their day-to-day legal affairs and has successfully defended direct sellers before numerous state and federal regulatory bodies.  Spencer is a member of the Utah, Idaho, Colorado and Missouri bars, and is an active member of the Direct Selling Association’s Lawyer’s Council and the Government Relations Committee.  In addition to being a founding member of The Direct Selling Symposium Group, he is also a frequent speaker at numerous industry functions including events sponsored by the Direct Selling Association, and is a contributing author to industry publications.