In a recent episode of the Built to Win podcast, Neora founder Jeff Olson and co-CEO Debra Highes discussed their company’s historic win against the Federal Trade Commission (FTC). After a grueling seven-year battle, this victory vindicated Neora and set a new standard for the direct selling industry and beyond.
Throughout the podcast, Olson and Highes emphasized that Neora was built to win from the very beginning. The company made deliberate decisions to differentiate itself from traditional direct sales companies by focusing on creating a legitimate e-commerce platform with high-quality products and a customer-centric approach. Neora’s business model was designed to align with market forces and consumer preferences, prioritizing value for all stakeholders.
Its robust compliance department was a critical factor contributing to Neora’s success in court. The company’s commitment to operating within the rules and providing guidance to its distributors significantly demonstrated its legitimacy. Additionally, Neora’s ability to prove that it had a substantial customer base, with 80% of sales going to non-distributors, was crucial in countering the FTC’s allegations.
The implications of Neora’s victory extend far beyond the direct selling industry. The ruling, now known as the “Neora Standard” or the “Gold Standard,” sets a precedent for how companies with independent contractors should operate. It serves as a line of defense for industries such as real estate and insurance, protecting the status of independent contractors and preventing undue control from regulatory bodies.
Olson and Highes also touched upon the importance of adaptability in today’s rapidly changing business landscape. They emphasized the need for companies to continually assess whether they are aligned with market forces and consumer preferences. Neora’s willingness to make tough decisions and evolve its business model has been instrumental in its success and ability to weather the storm of the FTC investigation.
The podcast hosts also delved into the personal toll the legal battle took on Neora’s leadership team. Olson, in particular, put his legacy and individual well-being on the line to defend the company he built. However, the unwavering support of his team and their shared belief in doing the right thing helped them persevere through the challenges.
As Neora moves forward from this historic win, the company remains committed to its core principles and values. Rather than making drastic changes, Neora plans to continue refining its business model and being the best version of itself. The company’s leadership recognizes that success is an ongoing journey, and they are excited to share their lessons and experiences with others through the Built to Win podcast.
In conclusion, Neora’s unprecedented legal victory against the FTC is a testament to the power of building a company on a foundation of integrity, adaptability, and customer value. The ruling validates Neora’s business model and sets a new standard for the direct selling industry and beyond. As the company continues to evolve and grow, it remains dedicated to empowering others to win in business and life.
