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Why Distributor Sales Skills Are the Key to Success in Direct Selling?
Distributors are the core drivers who bring in more customers and helping the direct selling business to retain their existing customers. A good distributor is the one who builds great customer relationships, not the number of conversions they make or products they sell. A successful distributor has high resilience and empathy in solving their customers’ problems with their skills and expertise. Sales skills are what makes a person great at selling anything to anyone, not just specific products or services. Distributors must possess some of the sales skills that help direct selling business to uplift their business to next level.
The world of sales has undergone drastic changes in the last decade with the advent of technology. Direct sales companies have found that leveraging new technologies like video calls and virtual selling can be hugely successful, both for increasing customer satisfaction and company revenue. A tech savvy distributor can solve customer concerns by using various technological advances to their advantage, which ultimately leads to increased sales.
An important skill a distributor must have been the product knowledge skill. For a newbie customer or an existing customer, they will always have queries about the product differently. So, the distributors must be able to solve their queries only by having a proper product knowledge.
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Understanding the XAI Framework for MLM Commission
06:49|The growth of a direct selling company depends upon ranks, legs, volumes, bonuses, and incentives of the compensation engine the company uses. But for the distributors to feel successful, payout they receives plays a vital role. The distributor receive commission for their performance they make, but they are unaware about the logic behind the calculations. The Explainable AI (XAI) framework is used for making the changes made in commission process understandable. If any change is made in this compensation structure, XAI explains why a payout changed, and how ranks, overrides, and bonuses are calculated. The XAI technique SHAP method and counterfactual explanations solve complexities by explaining exactly which factors contributed to each payout and how making small changes can impact the result.
A Comprehensive Guide to Efficient MLM Back-Office Management
06:25|For a direct sales business to be successful, a strong back-office system is essential. By having a strong back-office system, documenting sales and controlling payments, to keeping track of teams and their work, they ensure everything works smoothly. The advantages of back-office systems are the company records can be taken from the back-office and it can be used in a proactive decision-making process, methods can be developed if any challenges or problems are found within the organization before affecting the bottom line, companies can use data integration to respond to changes in the market earlier than competitors who still use fragmented systems.
Understanding MLM Software Compression for Network Marketing Success
04:58|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.
Essential Techniques for Retaining MLM Distributors Successfully
04:27|For a direct sales business to be successful, it is important for them to incorporate distributor retention strategies. There are multiple challenges faced by the direct sales company in distributor retention such as Unrealistic expectations and no initial success, Lack of proper training and support, Lack of motivation and passion etc. To resolve all these direct sales companies should incorporate strategies such as persistent training, better compensation plans, community & recognition, use of technology and following ethical leadership and transparency.
Key Considerations for Launching a Direct Sales Business in 2025
05:30|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.
Understanding the Cash Conversion Cycle in Direct Selling
05:45|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).
Growth Strategies: Leveraging Technology in Direct Selling
05:37|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.
Emerging DTC Trends Influencing Direct Selling in 2025
06:09|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
Effective Risk Management Strategies for Direct Selling Success
05:26|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.