Next Wave Charts Course for Smooth Selling

BY SANDRA GUY Sun-Times Columnist

Sales parties in women's homes are no longer old-fashioned social teas or trunk shows. The saleswomen, who wield samples from jewelry to cookware, advertise on their own Web sites and use sophisticated software and automated e-mail to stay organized. A Naperville company, Next Wave Logistics, is playing a key role in equipping these direct sales forces with the latest technology.

The strategy takes advantage of today's booming direct sales industry, which has shaken its image as a cult or a pyramid scheme.

Parties in a hostess' home provide a more personal experience than shopping in a store and offer an atmosphere where people enjoy each other's company and get a great deal of attention, said Amy Robinson, spokeswoman for the Direct Selling Association, based in Washington, D.C. The direct-selling model also provides entrepreneurs and small companies with consumer recognition for their merchandise more quickly than trying to sell it to a big retailer.

Next Wave Logistics got its start when co-founders David Proctor and Harold Zimmerman worked together at a consulting firm in Oak Brook and realized that the fast-growing direct-sales industry needed tools to increase its business efficiency and professional image.

Zimmerman, 36, the CEO, left a six-figure-salaried job seven years ago -- two days after his daughter was born -- to start the business.

Each man invested $10,000 to buy a computer server, which they put in Zimmerman's basement. They decided to take no bank loans or venture-capital money.

Proctor, 41, the executive vice president, stayed at the consulting firm, and paid Zimmerman's bills -- mortgage, groceries, car payment, utilities and other living expenses -- until they were able to support themselves through the business.

Next Wave Logistics won its first client in the first few weeks of its existence, and Proctor joined full-time in the summer of 2000. The 52-employee company posted fiscal 2006 sales of $10 million.

Next Wave supports its services with its own data center serving more than 300,000 users a day. It prides itself on providing white-glove service that focuses on customizing software to a company's needs. It sends in SWAT teams of three or four developers to set up the service in two to four months at a typical cost of $200,000 to $300,000. Next Wave also charges a subscription fee per user per month to cover intellectual property licensing, hardware and support.

Next Wave creates Web sites and sales tools that adhere to a company's strict logo rules and marketing standards, but part-time salespeople might personalize the sites to gain attention.

"If I'm in business part-time, whether it's selling for PartyLite or Pampered Chef, I want people to visit my Web site. I don't want to pay a developer $3,000 to create it. Yet the parent company wants a consistent brand message," Proctor said, explaining the business case for the service.

Next Wave Logistics also provides software that preps the salespeople in developing their sales pitches, helps them organize party dates, gather guest lists, and send out invitations and thank-you notes online.

The software gives the salesperson a calendar that automatically gets filled in with the dates of parties and steps to take beforehand, such as reminding participants of the date, getting RSVPs via e-mail, and following up on sales leads.

"We are getting much more response on the Web than we ever did when we sent catalogs to people who could not attend the party," Proctor said. "And it saves mailing and printing costs."

Among Next Wave Logistics' clients are Creative Memories, a St. Cloud, Minn.-based scrapbooking company, and Lia Sophia, a Bensenville-based jewelry seller.

Rick Schwartz, executive vice president at Lia Sophia, said Next Wave Logistics' software has enabled Lia Sophia's 15,000 independent salespeople nationwide to book orders and shows, and recruit other salespeople online.

"It has taken away the admin- istrative paperwork in a big way," Schwartz said. "Next Wave is constantly working to stay ahead of the curve."

The next wave?

In about a year, Lia Sophia salespeople might be carrying Blackberries.

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