The direct selling industry continues to attract entrepreneurial spirits who seek a pathway out of the conventional workforce. But as with any business, there are growing pains.
Meeting regulatory challenges is one problem, as is successful recruitment and retention. Then there’s building or finding the right technology to integrate into your cash flow management, just to name another. Whether it’s managing affiliate marketing payouts or handling payment orchestration for direct selling, there’s no shortage of challenges.
Unfortunately, the same can’t be said of solutions, and direct selling organizations find themselves just focusing on meeting their basic operational needs instead of what they should be working toward: growth.
Keep reading for a look at some of the concerns facing DSOs, including the primary challenges faced by those in this industry and the effective solutions that are needed.
The Challenges in Direct Selling Payouts
There are several issues direct selling payment processors typically run into with instant payouts.
This is one of the biggest issues facing DSOs due to increased scrutiny by regulatory bodies. It’s a significant enough challenge domestically, but when factoring in the different legal frameworks internationally, the problem quickly becomes intricate and difficult to navigate. Failing to meet regulatory guidelines means not only a loss of business but could result in legal complications and a loss of credibility.
Having the right technology backing your direct selling business operations is a crucial part of operating successfully. Finding and then integrating the best, most effective, and efficient tech solutions can be a roll of the dice at every step.
A lot of newer companies find themselves struggling when it comes to implementing digital platforms capable of streamlining processes like affiliate marketing payouts, payment orchestration, and even instant payouts for affiliates. Without the right technology, you can’t be competitive.
If you can’t get goods to market, you can’t sell. Supply is central to any direct selling organization. Supply chain management that guarantees products reach distributors and customers quickly and in good condition is key.
Unfortunately, supply chain management can be an incredibly complex undertaking. Inadequate management of inventory on hand, ordering and receiving, and handling any unforeseen disruptions can cost time, money, and customers.
Direct selling organizations typically struggle with cash flow management more than other types of businesses. The complexities of network marketing payouts, payment orchestration for affiliates, and instant payouts can cause a lot of stress on resources and those who have to manage them.
When it comes to the global nature of DSO businesses, currency fluctuations can complicate every transaction. Businesses that have to work with foreign exchanges know that sudden and unpredictable shifts in the relative value of currency can seriously affect profitability.
The Solutions DSOs Need
Handling regulatory issues efficiently requires compliance management tools that are designed to keep track of and guarantee compliance with all applicable local laws—no matter where they are.
Financial management for DSOs requires tools that can monitor changes in laws and regulations to safeguard continuing operations and sustained cash flow.
No matter how good a tech solution is, it can only simplify financial management for direct selling if it’s easy to get up and running and doesn’t need a lot of complicated or time-consuming customization.
When it comes to direct selling financial solutions, nothing needs to be stressed more than this. These businesses need software solutions that can manage affiliate marketing payouts, payment solutions, and instant payouts for affiliates every time without error or delay.
The right supply chain management solution can make a business’s operations more productive, efficient, and profitable just by making sure the products that are needed get there on time, every time. DSOs need tools that can help with inventory management, order tracking, and streamlining every aspect of shipping and receiving.
If your cash flow isn’t reliable, your business isn’t financially stable. DSOs need software that can help them not only stay in business but thrive by automating things like commission payouts, expense tracking, and financial performance forecasts that can be critical for solid financial health.
DSOs looking to provide their sellers with more flexibility in managing their earnings can benefit from Spendback functionality. This feature enables independent sellers to reinvest their earned commissions directly back into their sales efforts, helping to fuel growth without interrupting cash flow. By allowing sellers to put their commissions into purchasing more products or expanding marketing campaigns, Spendback accelerates their momentum and enables DSOs to scale faster, ensuring that both the business and its sellers can grow efficiently and sustainably.
A business that works with affiliates and associates internationally needs solutions that can help manage the inherent risks involved in dealing with different currencies that might fluctuate significantly within the course of an average day. DSOs need this kind of functionality to guarantee profitability and ongoing operations, no matter where they are.
How MassPay Helps
If you’re tired of struggling with financial management for your direct selling organization, consider partnering with MassPay. We’re here to leverage unparalleled global and local expertise in compliance with payments, financial management for direct selling, payment orchestration for affiliates, and more. Contact us today to learn how MassPay can help you operate more smoothly and profitably.
To learn more, schedule a consultation with the MassPay team.
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