The following report was compiled with the help of many people. We would like to thank the clients, direct sellers and app providers who contributed content to this effort, including information about their mobile apps and plans for the future, without which this would have been a very different report. We would like to especially thank Jonathan Ducos of LifeMax whose contribution was invaluable. Also, thanks to Maria Duron, Scott Allen and the entire team at Momentum Factor LLC. You are the best in this industry. We at our firm strive to be a progressive voice for this industry and consistently seek to alert its key players of technology and marketing trends to which they may avail. Our goal in creating this report was to educate the industry on the exceptional and soon-to-be indispensible tool that mobile apps have become for our companies and share information helpful to a successful implementation. We are happy to provide direct selling executives who may be considering mobile with a complimentary independent consultation about our discoveries and the findings from our research. Please contact us to schedule an appointment.

We invite you to connect with us at

www.MomoFactor.com Facebook.com/MomentumFactor

Twitter.com/MomoFactor YouTube.com/MomoFactor

info@MomoFactor.com

© 2012 Momentum Factor. All Rights Reserved.

A Thought Leader Report®

9600 Great Hills Trail, Suite 150 Great Hills Plaza West

Austin, Texas 78759 +1 512.994.GOGO! (4646)

www.MomoFactor.com

ACTION PACKED APPS

By Jonathan Gilliam & Jacob Miller

CONTENTS

Action  Packed  Apps  ..............................................................................................................................  3  Contents  ....................................................................................................................................................  4  Introduction  ............................................................................................................................................  1  Why  Direct  Selling  Companies  Should  COnsider  going  Mobile,  NOW  ..................................  3  Telling  the  Story  ..........................................................................................................................................................  7  Re-­‐Vitalize  Retention  ................................................................................................................................................  7  Communication  Channels  .......................................................................................................................................  9  Training:  The  New  “Mobile  University”  .........................................................................................................  10  Selecting  Your  Developer  .....................................................................................................................................  13  

SURVEYING  THE  APP  LANDSCAPE  .................................................................................................  16  Atlas  Apps/Genie  Mobile  ......................................................................................................................................  17  ByDesign  Technologies  .........................................................................................................................................  19  Data  Paradigm,  Inc.  ...............................................................................................................................................  21  LeapFactor  .................................................................................................................................................................  23  Smart  Online  ..............................................................................................................................................................  25  

Buying  and  Building  ...........................................................................................................................  26  Start-­‐up  Apps  For  Start  Ups  ...............................................................................................................................  26  Integration  Concerns  .............................................................................................................................................  27  

Conclusion  .............................................................................................................................................  28    About  Momentum  Factor  .................................................................................................................  29  Core  Values  .................................................................................................................................................................  30  

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INTRODUCTION

Our Thesis:

Effectively designed apps can drastically improve distributors’ “information-to-action” ratio, leading to increased retention, production, revenue, and profit.

Mobile technologies are indispensable for direct selling companies that want to tap into the rapidly transforming demographics and psychographics of today’s new networker. Our industry’s quandary is unique: how can we grow our companies in an increasingly connected world while maintaining the human feel of our one-of-a-kind business model? Specifically, how can we harness the massive potential of mobile technologies without fundamentally altering a business model that has stood the test of time?

The proliferation of mobile technologies offers opportunities and constraints, new dynamics and difficult thresholds. This report will:

1. Demonstrate the necessity of developing mobile technologies 2. Survey the prospects and limitations of apps currently available for

direct selling companies 3. Provide information on providers whose apps are production-ready 4. Analyze the potential benefits in terms of costs, culture, and catalyzing

action.

Over the past several months we’ve spent a significant amount of time looking at mobile apps for direct selling companies, as well as mobile statistics and trends. In this time, we’ve tested and reviewed many distributor-focused mobile app available. We've looked for utility, design and effectiveness. We found several viable solutions from providers with deep enough expertise in both direct selling and mobile app development that any direct seller can feel confident their needs can be met, without waiting for technology to catch up.

We suggest that the time, indeed, is now.

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Methodology: In February 2012 our research team sent questionnaires about the availability of mobile apps to direct selling companies to thirteen application developers and direct selling software providers. Some were eliminated due to a lack of a working, available app to review or to a lack of response. The companies represented herein have an app available today and have capacity to serve the direct selling companies as of this writing.

Our goal was to provide an independent review of available apps and services to direct sellers so that company executives may make informed decisions about how to move forward with their own mobile efforts.

Companies who were not included or were not ready for this edition of the Mobile App Report are invited to contact us about participating in the next edition. Please email jacob@momofactor.com

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WHY DIRECT SELLING COMPANIES SHOULD CONSIDER GOING MOBILE, NOW

Without a doubt you are hearing from your field about mobile. The fact is nearly half of your distributors — and everyone they meet — are on a smartphone. With app usage now actually exceeding web usage for the first time ever, the demand for mobile accessibility and instant information gratification is on the rise. 1

Consider this: Joe is standing in line for a latte. His phone buzzes telling him that Mary, who's in his downline, is one sign-up away from a fabulous cruise. Do you think Joe might hit the “Call Mary” button if it’s right there in front of him? Most likely, he will. Mobile allows him to occupy time doing something meaningful and productive that would otherwise be wasted waiting in line. If a significant number of distributors do the same, it doesn’t take long to realize what just a few actions a day could mean for the bottom line of your company.

This is only one small example of how mobile can be used to directly affect a company's volume and growth. Increasingly, there are entire suites of mobile value that could be accessed by your distributors — tools to make their efforts easier and more profitable for everyone.

1 Pew Research Center, US Smartphone Adoption & Usage Survey, March 2012. 2 “25 Actions Your Company Can Take To Connect With Gen Y” Gilliam, Jonathan.

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Top Reasons Direct Sellers Should Consider Adding a Mobile App to Their Systems

Increase Production

If your active distributors were able to easily increase their daily activity through two additional actions — a call here, a quick encouraging text there — what would that do for your revenue and retention? A well-designed mobile app can help distributors take effective action quickly. An app can tell them what to do now, in the moment. Hot leads or chance meetings can be acted on more quickly when there are simple in-app presentations and immediate in-app sign-ups. Additionally, with CRM (Customer Relationship Management) built into apps, chances are that your field will follow up much more effectively than they did before.

Increase Retention

The holy grail. A good app can prevent new representatives from slipping through the cracks by alerting and reminding super busy

upline leaders to reach out to them at just the right times. It can also encourage new recruits to stick around longer by giving them simple tools to keep them focused and "in the know". The new daily method of operation will become enjoyable and consistent because they can now carry their business with them. Most of all, an app can make the often intimidating “sales” process of identifying and contacting prospects an easy, systemized experience.

Improve Onboarding

The ability to ramp up new recruits can be streamlined with the smart application of video and training systems to the small screen. This can sharply reduce the learning curve as well. Convenience is the key here — videos, podcasts, and presentations can be sent directly to the user’s screen

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wherever they are without having to sit at a desk, find a computer or worry about having an internet connection.

Direct and Indirect Revenue

Your app could become a major source of revenue itself. A few dollars per distributor could mean a lucrative, non-commissionable revenue stream for the company. Companies who prefer not to add another tool for the field to buy may consider adding it to their premium website packages or simply buy it for the field and add it to the tool set. That said, what is most compelling about apps is the amount of indirect revenue that could result from a more energized, active and efficient field. The revenue from a significant increase in adoption of mobile apps could pay for the initiative many times over. Even if you’d prefer not to sell tools to your field, chances are you will see a nice payoff of your investment fairly quickly in production alone.

Overcome Gen Y Barriers

If you covet a younger audience (also known as millennials or “GenY”) your business must be mobile.2 Younger representatives simply will not join if they cannot manage their business on the go. Many decide to sign up based on the tools available to them. They want to know that there is a framework for success, and a good mobile app is a powerful way to communicate your sophistication as a company as well as demonstrate the support you offer to the field. Communication tools and networking functionality of many apps are particularly well suited for a GenY audience; constant communication and interaction is what they are all about. GenY need instant gratification to

2 “25 Actions Your Company Can Take To Connect With Gen Y” Gilliam, Jonathan. MomoFactor.com July 15, 2011.

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stay interested. They also become impatient when they see manual or slow processes that could be improved with technology.

Leverage the Google and Apple Brands

Companies can realize a significant lift in branding just by offering apps through Apple and Google. Mobile is a great way to leverage their billions of marketing dollars for the benefit of your offering. The average consumer inherently trusts the apps that come from these great brands and some of that goodwill can transfer to your brand by association. Networkers are naturally attracted to companies that are ahead of the curve. Mobile app technologies can communicate innovation, dynamism, and competitive smarts.

Create System Dependency

Mobile can enhance and simplify field education and make corporate-sponsored training much simpler to duplicate. New distributors will do the business the way they were brought in and trained. Mobile makes these tools available in real time to distributors wherever they happen to be, increasing their buy-in and reliance on company-vetted training and tools and eliminating some of the variations on training inherent in many companies.

Going Mobile Does the Right Thing by Your Field

Mobile is here and now. Half your field owns a smartphone and many are clamoring for way to support their businesses. By bringing the field what it wants and giving them the tools that they need, you are being responsive. And isn’t that what we’re all here for?

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TELLING THE STORY

Direct selling companies live and die through stories. Stories engage the end-user with our brand, beliefs, products, and ideas and provide the vehicle through which value is communicated. Mobility can tell the story well. It can showcase recognition in a way that has never been done before. Video messaging from home office can keep the field connected. As new companies emerge their story will be much easier to tell based on how the company positions itself with their app.

The new generation of entrepreneurs filling the ranks of your company are especially concerned with the larger social value a company offers. Gen Y are often hyper-conscious about a company’s ecological conscience and social awareness. Distributors can utilize app technologies to show storyboards, video demos, or evidence of a company's philanthropic actions. Seeing is believing. Mobile app technologies can make your company come to life in the eyes of potential recruits.

RE-VITALIZE RETENTION

Mobile app technologies offer much-needed support for the foundation of direct selling. When properly utilized, well-designed apps can solve the “prisoner’s dilemma” of new recruits who often grapple with how to make the most of what they have to work with. Overloading them with information and maze-like incentive structures can instill a sense of confusion, or worse yet, fear. Too little information risks fostering doubt, complacency, or inaction.

Ways mobile can help to increase retention: Training – Getting a new recruit off to the right start is crucial. Making mobile a part of that process can easily open up the delivery channel for well-organized training content streamed directly to their

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smartphone. It will also allow you to manage your analytics to see if they are actually using the training that was created.

Communication - Communication from the home office traditionally sent out in an email blast or posted on a website can easily be overlooked or ignored. With mobile providing users with ways to occupy their downtime, the home office can easily hook a smartphone to an RSS news feed and give them one more thing to read before they get out of bed in the morning or turn-in for the night.

Product announcements, promotion details, event postings, and company news can increase connection to the company and increase a sense of being plugged in. Better connection with the company keeps distributors engaged and less likely to drop out.

Instant Helping Hand – Knowing that an upline is just a click away can make a big difference for newbies. Recruiting can be made easier based on the way the business is presented, thereby increasing retention due to the early success a new recruit will have. Newbies can let the app do the talking until they can actually learn and become comfortable with the process.

Tablet or smartphone Apps can enable a more comfortable selling and recruiting process for reps. This will lead to more volume, commissions and ultimately retention—they won’t leave the business if they are moving product and more importantly, engaged with the company.

In short, smart apps can improve communication channels, provide instant access to content and information, and directly augment the motivational structures that have stimulated distribution for generations. This keeps the field active in an opportunity.

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COMMUNICATION CHANNELS

Any direct selling marketing executive knows, it is more challenging than ever to communicate consistently with the field. There is far more noise than even five years ago and alerting the field to a time sensitive or even critical events and notices is a huge challenge. Inboxes are overloaded and social media is a frenzy of information and distraction.

Today, cultivating community in the field is critical. Communication is the glue that bonds teams together. Smart app technologies feed communication relays that allow for quick and easy dissemination of information.

A tip-a-day, new product information, weekly motivational messages from a founder, event support, and productivity tools can yield dramatic benefits in terms of coordination, training, and motivation—all of which convert into action.

Messaging a new three-minute video each week from home office can begin the process. It should come from the field as well. Leaders can communicate to their organizations through messaging.

The key to direct selling success is in the creation of environments that maximize distributor action. New media technologies can strike the proper balance between top-down guidance and organic, on-the-ground selling

Some companies, such as Mary Kay, celebrate the anniversary of the day a consultant joined the team, or their birthday. App technologies can provide notifications of these dates and all dates that are important to the field.

Field reps are under more time pressure than ever and are seeing ways to increase their ability to multi-task. By cutting through the noise and distractions inherent in multi-level organizations, teams can run more smoothly and efficiently. Fewer hassles and friction for distributors result in aggregate increases in the number of daily actions. All of which will directly impact the bottom line.

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TRAINING: THE NEW “MOBILE UNIVERSITY”

Unlike the old school days of creating your “university on wheels” via tapes and CDs, mobile apps bring a new vibrant aspect: interactivity. Training can be revolutionized and made more fun, with a higher uptake and level of comprehension. Mobile apps also have the potential to drastically reduce training costs. Integrating and centralizing training resources and information is a relatively undeveloped, and potentially lucrative, area of app development in direct selling.

1. Mobile apps offer a difficult-to-quantify yet powerful psychological advantage to distributors. Most new entrants would prefer to appear as experts on their offering. However, many companies have expansive product lines or complicated compensation plans that make on-boarding a real challenge. App technologies can provide access to entire product lines, giving distributors the ability to display them either overtly or covertly to the customer, since they possess all of the information in the palm of their hand. This can help new reps appear informed and trained rather than fumbling through pamphlets and papers or being tied to a DVD player or computer.

2. Companies still must think about the way new entrants learn. Educational systems should increasingly integrate technology into the learning process. Using a large array of tools can target the differences in learning styles and dramatically reduce the time, cost, and headaches of the learning curve. Younger generations are especially accustomed to this kind of learning.

3. A distributor can gain access to selling tips or parts of their sales message right on their phone, without it being apparent to the prospect. Even if he or she doesn’t need to access this information, simply knowing they could can provide a dose of confidence and reduce anxiety.

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4. App technologies can streamline training processes. Interactive guides or step-by-step information manuals can be developed to show less experienced distributors how to demonstrate products or appeal to customers and prospects. Apps can enable the communication channels for questions and answers in real time. Each additional bit of available information makes action that much more likely to happen, wherever distributors are.

Good mobile apps can provide companies and leaders ample opportunities to teach while mindful of distributors’ attachments to maintaining autonomy and self-determination. Simple daily reminders can share valuable guidance from the pros and help new recruits keep focused, reduce confusion, and reinvent the meaning of retention.

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Words of Caution Before Jumping In

Given the many compelling reasons to dive in and begin developing an app, it is important to understand the significance of releasing an app to the field. Similar to backoffice systems or sales training, the field’s profit and enjoyment from the apps is by far the most important metric to consider—it is they who will live with the decisions you make now.

You want your app to be an attracting and motivating factor, not a detriment. A poorly implemented app could cause more problems than benefits and will at some point require a re-work.

Also, although many apps may appear similar on the surface, look slick or are feature-rich, what’s most important is what works to grow your business and enhance your company culture.

Companies must be diligent in assessing not only vendors, but what it is they want their app to achieve. Is presenting the opportunity in a beautiful format most important? Perhaps enabling field daily actions and training are what you are looking for. Your decisions about the final product will be critical to your choice of vendor, development platform, functionality, user interface and nearly aspect of your mobile app effort and experience.

We recommend your company, and all departments, take the time necessary to vet the available vendors and become deeply involved with the ideation and creation of the app. Leave it to IT alone and you may get an app that works fine but isn't used by the field. Conversely, if left to marketing, you may end up mobile brochure-ware—pretty on an iPad, but not conducive to sales. Every department should have a hand in the effort. In our opinion, your internal team should include executives from sales, IT, training, marketing, and strategy at the very least.

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SELECTING YOUR DEVELOPER

If you see the benefits of having an app tailored to your company’s branding, product and functional needs, working with a developer to create an app for you may be the best fit for your company.

Here are a few things to consider when selecting a developer:

1. Several backoffice system providers are currently in the process of building or have built app platforms for their services clients as an add-on program. This can be an advantage for their clients and can could facilitate a smoother implementation. However, our advice is do your research and compare the actual app your provider has developed with those of other firms and compare based on the app itself, rather than convenience or even price. What’s most important is the app’s utility and adoption, not what the home office deems sufficient. Be sure and research and test the functionality and usefulness of the apps with field adoption being the number one goal.

2. Be especially diligent in your review of firms whose primary expertise is not in software development. Companies primarily in the business ops or marketing arena may not have a strong grasp of development processes, user behavior or how a mobile app should work. In many cases they will likely outsource the actual coding, providing clients little control or access to the app development process.

3. Utilize firms who possess practical experience in direct selling/network marketing. A company that primarily develops apps for mainstream consumers or business IT departments will likely not have the necessary insight into distributor needs, lifestyle, behavior.

Direct selling companies who are considering adding a mobile app are invited to leverage our considerable independent research of direct selling mobile apps in comparing and selecting their app providers, at no charge. Please contact us at jacob@momofactor.com or 512.994.4646 to schedule. a call.

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Again we emphasize how important knowledge of field behavior and usage of technology is.

4. The developers are competing for you, not the other way around. There are many avenues and paths for you. Cost to companies to implement mobile appear to be very flexible among providers, with most willing to work out arrangements based on per distributor charges, licensing fees or some combination thereof.

5. Pick a developer with a bit of imagination. In such a highly competitive and constantly changing environment, the ability to "think outside the box" is important. You want a developer to go beyond simply meeting standard technical requirements. Rather, you want them to visualize beyond the code and be creative for your business and goals. Let the relationship, not just the results, drive your business proceedings.

6. Make sure your final contractual agreement is worded to benefit your business. Precise language in the agreement should work to your advantage. Choose an appropriate pricing model for your company; some companies may prefer to license the code outright, others may prefer a per-rep model and fit the cost into their web packages. Either way, the pricing model you choose will impact both short-term and long-term costs. You should figure in ongoing development, updates, and bug fixes, along with consultative input and support.

7. Choose a developer who demonstrates a desire for learning the human side to your business. If the provider’s staff is made up entirely of programmers, only programmers will love the app.

8. Make sure the developer is able to work with all platforms – iOS or Android, Windows or Mac – and that the app can easily link up with other email platforms or social media sites. Ask questions about the coding language as phone/tablet operating systems use different programming languages, often requiring multiple experts to recode an app. Be aware of any hidden costs associated with developing the app for each platform.

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Designing an app can be like building your dream house. You may have a very specific idea in your head, but run into problems translating it into an architect’s blueprints. Or you may have only a foggy concept of what you want, but would like the developer to enlighten. In either case, striking a balance between developer creativity, efficiency, and competency is key.

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SURVEYING THE APP LANDSCAPE

The current field of app developers that work in tandem with direct sales is diverse yet limited. The key for your company is finding a developer who can address the particular needs of this industry and understand its success levers and communication dynamics.

Our recommendation is companies should seek providers who not only understand mobile apps, but also understand direct selling. Not just from a corporate level. The app developer needs to have field experience as well, allowing the app to be developed through both sets of eyes.

The good news is that there are multiple companies that have already developed apps specifically for the industry, and several more have solutions under development at the time of this writing.

In this review, we will focus on “native” apps. (Native apps run on the smartphone itself. Web apps run in the smartphone’s browser.) In our opinion, native apps have far more functionality and connectivity, and importantly they can connect with information available only on the smartphone.

In contrast, “mobile web apps” are often merely smaller screen versions of the distributor back office and are limited in functionality and value. Most importantly, for a mobile web app to fully work it must be connected through Wi-Fi—a major drawback for people on the go. On the positive side, web apps can be much less expensive to update and deploy.

A few of the app software providers offer a hybrid solution, which capitalizes on the strengths of both. These still require a native app framework, however the intelligent implementation of a hybrid solution can provide the best of both worlds.

The following list is not exhaustive, but provides a good idea of the types of options available to direct sellers:

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ATLAS APPS/GENIE MOBILE

DESCRIPTION: Address: 1010 Wilshire Blvd Suite #715 Los Angeles, CA 90017 Phone: (310) 455 6150 Email: hunter@atlaspowered.com Contact: Hunter Gray Web site: www.genie.atlaspowered.com Year Founded: 2008

From dsa.org: “Atlas Apps seeks to boost productivity through its mobile apps. They developed strong apps for both the iPhone and Android marketplaces. Its founders have backgrounds in direct selling and created Genie Mobile to specifically address the idea of increasing the activity of each distributor, thereby increasing revenue for the field and clients. The intention is to build cumulative impact by making it easier to increase activity daily.”

Genie Mobile offers a range of productivity tools from front end (ecommerce, CRM, shopping) to back end (AI reporting, communication).

• Member of the Direct Selling Association (DSA) • Representative Clients: LifeMax

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MOBILE APP DESCRIPTION Genie Mobile is a customizable yet modular-based mobile app developed by Atlas Apps, LLC, created for direct selling.

ADVANTAGES • 100% customizable • Direct Selling-specific • Silicon Valley venture-backed • Deep app expertise • Field-based direct selling expertise • Most flexible in terms of pricing options

QUESTIONS TO ASK THIS PROVIDER • Are native applications available on all platforms? • What are the advantages/disadvantages of being a young company

in the mobile space?

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BYDESIGN TECHNOLOGIES

DESCRIPTION Address: 9950 Princess Palm Avenue Suite 107 Tampa, FL 33619 Phone: 813-253-2235 Email: sales@bydesign.com Contact: Jerry York Web site: www.bydesigntechnologies.com Founded: 2000

From dsa.org: “ByDesign Technologies was one of the first companies to develop and release a 100% web-based Direct Sales Distributor Management platform (Genealogy, Customers, Commissions, Fulfillment). We continually utilize the latest technologies such as Microsoft.NET to stay ahead in the industry and continue to build extremely flexible and easy to use software for both small and large enterprises.”

Products / Services: Consultant Business Tools, Database Management, Genealogy/Compensation Management Systems, Software, Web Design

Core Competency: Software Systems, Backoffice, Web Tools

• Member of the Direct Selling Association (DSA) • Pricing: Multiple options. Flexible, license fee and per user fees • Representative clients: N/A

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MOBILE APP DESCRIPTION ByDesign offers Mobilize and Revolution oriented towards direct sellers. Revolution is a mobile and Internet-based back office. Mobilize is made up of tools for consultants and distributors.

FEATURES • Audio • Marketing • Catalog • Communication • Organize Orders • Presentations • Calendars & Events • Organization • Commissions

ADVANTAGES

• Attractive User Interface • Strong Integration between platforms • Social networking built into the app • International capabilities • In-app ecommerce estimated availability mid-2012 • Targeted communications opportunities

QUESTIONS TO ASK THIS PROVIDER • How customizable is the app? • What kind of reporting is available? • Are native applications available on all platforms?

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DATA PARADIGM, INC.

DESCRIPTION Address: 2323 Bryan Street, Suite 2600 Dallas, TX 75201 Phone: 214-468-0200 Email: contact@dataparadigm.com Contact: Paul Booth Web site: www.dataparadigm.com Year Founded: 1998

From dsa.org: “Data Paradigm is an expert IT software solution firm with unparalleled, proven expertise in delivering highly customized, real-time business process and back office software applications utilizing the latest technologies available. We deliver fully hosted solutions which consist of multiple modules, including Replicating Websites, E-Commerce, Inventory Management, Integrated Customer Relationship Management, Custom Reporting and Financial Analysis. We intentionally do not subscribe to a one size fits all philosophy.” 3

Products / Services: Business Consultants, Compensation Consultants, Internet Marketing/Social Media Services, Commission Payment Services, Credit Card Services, Consultant Business Tools, Genealogy/Compensation Management Systems, Software, Integrated Communications Solutions.

Competency: Software Systems, Backoffice, Web Tools

3 Source: DSA.org

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MOBILE APP DESCRIPTION Data Paradigm produces unique direct sales-specific apps. They describe their custom apps as “a non-linear, fluid platform.” Data Paradigm is unique in that it uses a modular software application set called Camelot, which is intended to be a tool for both back office and business processes. It includes web-based, end-user applications for ecommerce, finance and accounting, inventory management, and fully integrated CRM. The reports and statistical information it offers are numerous.

• Member of the Direct Selling Association (DSA) • Representative clients: ACN, Momentis • Pricing: Flexible, license fee; shared success

ADVANTAGES • Oriented toward continual customization • Seamless data integration for DPI clients. • Reps have access to their entire Backoffice on their device. • Security-focused provider • Strong direct selling industry experience

QUESTIONS TO ASK THIS PROVIDER • Must a direct seller be a client of the company’s backoffice system to

avail of the mobile app? • What would be the process of switching to a different app developer

if needed? • Was the app in use originally native? • What features will be available in next app?

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LEAPFACTOR

DESCRIPTION Address: 1880 South Bayshore Drive Miami, FL 33133 Phone: (800) 578-9000 Email: kate@leapfactor.com Contact: Kate Donovan Web site: http://www.leapfactor.com Year Founded: 2009

From dsa.org: “LeapFactor enables direct selling companies to deploy game-changing mobile apps that empower their sales force to exponentially increase their business activity while on-the-go. By combining state-of-the-art technology and high-end user experience design, the Salesfactor mobile solution becomes the cornerstone for distributors to conduct their business, allowing them to tell the story, present the opportunity, showcase products, take orders, learn the business with multimedia training and monitor business activity.”4

• Member of the Direct Selling Association (DSA) • Pricing: Sliding scale based on usage • Representative clients: Avon-Mexico, LIMU

Core Competency: Mobile Application Development

4 Source: DSA.org

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MOBILE APP DESCRIPTION “Salesfactor, Leapfactor’s mobile solution for the Direct Sales Industry, increases sales productivity for Direct Sales Independent Business Consultants and optimizes salesforce management for Direct Sales Companies. The iPad app offers an easy-to-use experience of a consumer app, can be implemented in record time and requires virtually no training. Thanks to Leapfactor’s robust and scalable Mobile Cloud Services, the solution can be deployed as a standalone app or can be integrated with your existing systems.”5

FEATURES

PROS • Customized catalogs, order taking, enrollment, messaging, reports,

genealogy, social media analytics commission simulator, upselling and party plan hosting

• International capabilities

QUESTIONS TO ASK THIS PROVIDER • How long does it take to deploy an app? • What environments is your app available in?

5 Source: Leapfactor

• Documents • Training • Promotion • Messages • Genealogy

• Performance • Analytics • Promotions • Recruiting • Orders

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SMART ONLINE

DESCRIPTION Address: 4505 Emperor Blvd, Suite 320 Durham, North Carolina 27703 Phone: (800) 578-9000 Email: Steven.bruns@smartonline.com Contact: Steve Bruns Web site: http://www.smartonmobile.com Year Founded: 1999

From dsa.org: “Smart Online engages users with the core features of everyday life through innovative web-based and mobile applications. We create products from emerging technologies like mobile and social media, which enable our clients to stay in ‘constant connection’ with their users through relevant and unique online marketing initiatives. Our solutions allow customers, employees, constituents, and shareholders to engage, communicate, connect and grow with others that share similar interests.”

• Member of the Direct Selling Association (DSA) • Pricing: N/A • Representative clients: N/A

Core Competency: Mobile Application Development

ADVANTAGES • Multi-industry experience • No expiration dates on development • International experience, especially in Israel and the Middle East.

QUESTIONS TO ASK THIS PROVIDER • Who do you typically develop apps for? • How active are you in the direct selling industry? • Are your apps geared for consumers or businesses?

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BUYING AND BUILDING

The process of developing an app will inevitably be an ongoing and dynamic engagement. Whether you build one with your IT staff or hire an app provider, the question of building versus buying is useful in order to think through potential hurdles along the way.

Buying or building an app is not a “one and done” deal. Either situation will require updates, bug fixes, maintenance, and revisions to suit your company’s growing needs.

In the most basic sense, to choose the proper course of action for your business, the question comes down to deciding what sort of app you envision.

Weigh your particular company’s:

• Current app needs • Amount of affordable investment • Desired level of complexity or uniqueness in design • Desired outcomes from the field

START-UP APPS FOR START UPS

If your needs are relatively limited, you need an app quick, and you cannot afford a larger implementation, buying an app through a developer platform may be something to consider.

Under this scenario, you can simply use their online tools to click-and-drag your app into existence. You’ll be able to choose the features you want and, since you are essentially working with modified templates, the stability of the app should be fine.

You could have a basic, no frills web app up and running in about a month. The immediate increase in sales and revenues could make a top-of-the-line app a future investment. However, this is really merely a starter option for those who need an app right away and have little cash to invest. Don’t expect a lot of functionality, customization or usefulness.

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It is important to remember that in order for your app to be functional as a backoffice, you will need support from your back office systems provider. Most are willing to cooperate with outside providers to build an API and support the implementation. Many backoffice providers already have APIs in place for some of the app providers from previous engagements, which can save all parties time and expense.

INTEGRATION CONCERNS

Concerns about integration can take a number of forms—integrating old and new data or software, integrating an app with other media or software tools or platforms, or simply transitioning an entire field force into using a new app technology.

All of the companies in this report can handle most tech-based concerns. Several providers make it a marketing point that they can handle your information or media-based integration issues, a key component. With the right team and cooperation from your software partners, integration should not be all too difficult.

Another concern is training integration. If your app is adopted for training or onboarding the field (which should be a goal of your project) you should ensure the deeper participation of your training and field leadership in your project. Upgrading to mobile technologies does not mean wholesale changes in the way the company or field works. The goal should be to carry on the philosophies and core values of the company into the mobile future. Gradual and phased integration of mobile technologies, perhaps starting at the top and working down, can securely achieve mobility in an orderly fashion.

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CONCLUSION

The direct selling industry relies upon the development of dynamic strategies that connect information and incentives to motivation and action. The bottom-line for increasing production is finding seemingly small, yet meaningful, ways to increase the number of actions by distributors. Direct sellers know that more actions inevitably translate into more recruiting, retention, and sales.

Your company should seriously consider a mobile strategy, and soon. At some point in the near future not having a mobile application in your distributors' arsenal will be akin operating without a website. It’s not a matter of if, it’s a matter of when.

As Mike Edwards, Director of Digital Marketing at Amway, shares the company’s reasons for going mobile: “Mobile commerce is the future. Pretty much any consumer trend information you read today is pointing to the power of mobile.”6

Well said.

6 “Amway launches commerce app for direct selling” Mobile Commerce Daily, December 3, 2009.

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ABOUT MOMENTUM FACTOR

Our mission is to provide best-in-class marketing & management services to the world’s best direct selling companies and field leaders. Our firm works to maximize performance for clients by increasing revenue, protecting their brands, engaging their field & customers, and multiplying momentum. Most of all, our aim is to become high-value, indispensible partners with our clients for the long term.

We are exclusive to the Direct Selling industry. Our mission is to provide best-in-class marketing & management services to the world’s finest direct selling companies and field leaders. Our firm works to maximize performance for clients by increasing revenue, protecting brands, engaging field & customers, and multiplying Momentum. Most of all, our aim is to become high-value, indispensible partners with our clients for the long term. Call us if we can help you.

9600 Great Hills Trail, Suite 150

Great Hills Plaza West Austin, Texas 78759

+1 512.994.GOGO! (4646) www.MomoFactor.com

Marketing Leadership for Direct Sellers • Complete Social Media Management • Online Reputation Repair &

Protection • Online Marketing and Lead

Generation • Website Design & Development • Social Media Training for the Field

• Strategic Marketing • Speakers Bureau on Topics Of Social

Media and Mobility • Startup, Launch and Growth Consulting • Automated Compliance Monitoring • World-class Marketing Strategies • Direct Selling Video and Multimedia

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CORE VALUES We believe that we’re here to make a difference by helping the

companies who help people.

We choose to work with clients where we can make a significant contribution.

We believe in simplicity versus complexity, clarity over obtuseness.

We covet only projects that are truly important and meaningful to our clients and us.

We believe in collaboration with our clients and partners, driving quality and innovation.

We don’t settle for anything less than honesty, integrity and excellence.

We value family, friendship, community and spirit.

“Values are more than simple statements like ‘we have integrity’ or ‘we put our clients first.’ Our values represent powerful ideas about who we are as a firm and how we make decisions under uncertainty or duress, and importantly, what we would give up if we had to make a choice.” ~ Jonathan Gilliam

 

We  hope  you  found  this  report  informative.    If  I  can  ever  help  you  or  your  company  please  contact  me  directly  at  512.692.6849  or  jonathan@momofactor.com.  

Best regards,

Jonathan Gilliam Momentum Factor LLC

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