Epixel Podcast

For a successful network marketing business, the distributors are the important part. Even though the business has been successful, it will have inactive distributors. So what is MLM compression? Compression means paying the distributors fair compensation when some distributors gone inactive. It automatically closes the gaps assuring continuity in payments to the active members and thereby keeping your company running healthy and speedy. There are advanced compression scenarios such as dynamic compression, selective level compression and roll-up compression. The benefits of business compression are greater distributor retention, better organizational stability and financial efficiency. 

As the year changes, people’s attitude in doing business also changes. They are now incorporating and adapting newer technologies to withstand in the competitive market. Direct selling industry is also witnessing transformations in their business strategies. Before launching a direct sales business, they must consider so many factors so that they withstand in the competitive market.    A great workplace is not just about the interiors, and the looks. It's about the culture, comfortable working conditions, and timely appreciation. The companies should make sure that they are cent per cent available. It does not mean physical accessibility; it means digital accessibility. The Digital accessibility involves aiding your workforce with the necessary tools and systems required to carry out their responsibilities from wherever they are. Along with that a content management system should be able to give immense knowledge for their workforce. 

For a smooth function of business, it is essential that there is no blockage in cash flow as well as workflow. The workflow can be efficient by using advanced technologies but for an efficient cashflow should need smarter steps should be taken. In a direct sales process, there are several processes such as procuring raw materials, manufacturing products, stocking up inventory, finding distributors, and finally when the product reaches the customers, companies still can’t be sure if they are going to receive the cash until the return window is over. A Cash Conversion Cycle (CCC) shows the number of days the capital is tied from production to sale. Cash Conversion Cycle = Days Inventory Outstanding (DIO) + Days Sales Outstanding (DSO) − Days Payables Outstanding (DPO) The factors influencing the Cash Conversion Cycle are Days Inventory Outstanding (DIO), Days Sales Outstanding (DSO), and Days Payables Outstanding (DPO). 

Direct selling is a successful business model over the years. Direct sales companies are always upgrading their system by adopting latest technologies. The technologies used in direct selling are Artificial Intelligence, Blockchain Technology, Smart Contracts, Cloud Computing, Ecommerce and Social Media Marketing, Mobile Apps, Virtual Event Platforms, Real-Time Analytics, Customer Relationship Management (CRM) Systems, Automated Distributor Training.  Artificial Intelligence (AI) is the top technology used by the direct selling companies nowadays. This artificial intelligence can be used in predicting customer behaviours, their interactions, purchase patterns etc. This technology can be used to enhance customer shopping experience by providing them the personal suggestions for the product.  

Traditional marketing has become outdated by the invent of DTC method. DTC is a modern marketing method where products and services are directly sold to the customers by utilizing ecommerce platforms and online marketing strategies to reach and engage with customers directly. With the invent of advanced technologies, this DTC approach helps the direct sales companies to create a direct connection with their customer base. There are 10 DTC trends in direct selling industry and they are  Live shopping experience Social commerce Influencer partnerships Content marketing Digital storefronts Personalized experiences Diverse product categories Supply chain and inventory management Subscription model Sustainability initiatives 

Direct sales business is a successful business which overcomed a lot of risks and scrutinities. There are multiple risks such as Legal and regulatory compliance, compensation plan, distributor and customer attrition, security threats, competition, operational risk, brand identity, financial risk. Distributors are an important part of a direct sales business. The companies should incorporate advanced strategies to enhance their engagement. Introducing gamifying elements in the business can increase distributor motivation. Also, companies should use advanced technologies such as NLP, ML, and AI to analyse customer-distributor behaviour and sentiments. Security threat is an ever-incoming risk for a direct selling business. In a PwC Pulse survey “Managing business risks”, cybersecurity ranked #1 with 40% of respondents citing it as a serious risk for concern. Companies should adopt strict measures, ensure zero-trust framework, use key risk indicators for measuring risks etc. 

Earlier for a business, marketing was scheduling an appointment, be on time, introduce your product through PPT, then follow up. But as technologies enhanced, the companies are no longer using this old method of marketing for their business. Direct sales companies are using five advanced tools that help to find more prospects and also enhance the distributor engagement and productivity. The tools are marketing suite, virtual party sales prototype, customer relationship management (CRM), intelligent business tools, distributor training suite. A marketing suite of a direct sales company includes the tools and services needed for the company to market their product. It includes social media management and tracking, email marketing, lead capture campaign management, A/B testing tools, referral & affiliate marketing management, and many more. These tools are also useful for the distributors for bringing out their maximum effectiveness.  

Africa and middle east are the growth potential zones for direct selling business. In between 2019 and 2024, the retail sales of Africa/middle east regions experience a decline in their retail sales of 22.5%. For more precise, Africa region experiences a decline of retail sales about 21%in 2019 to 2023, and middle eastern region faced a decline of 29% in retail sales for the same period of years.  For the south African region, the region experienced a decline of 13.2% to $ 438 million. The reason for this decline may be because of the pandemic or the loss of trust of customers in the direct sales business or any political instabilities. As per studies, the direct sales industry fell about 13.2%, whereas brick-and-mortar retail fell by only 1%, but ecommerce made a 29% surge in 2023.