How Direct Selling Leaders Are Tackling Retention, Payouts, & the Gig Economy Challenge

Insights from the Direct Selling Summit

The Direct Selling Summit brought together industry leaders to discuss the biggest challenges and opportunities facing direct selling organizations in 2025. Among the key themes were distributor retention, competition with the gig economy, and the critical role of faster, more flexible payouts.

Our team connected with executives from top direct selling companies to explore how organizations are adapting to changing market dynamics and what role innovative payout solutions—like real-time payments and gift card incentives—can play in improving retention and recruitment.

Here are the biggest takeaways from the event and what they mean for the future of direct selling.

The rise of gig work has introduced new competition for direct selling organizations. Many potential distributors now see gig jobs as easier, more flexible, and offering immediate payouts—a stark contrast to traditional direct selling models, which often require recruiting, selling to a network, and waiting for commissions to clear.

Many executives emphasized that retention—not just recruitment—is their biggest growth opportunity. In addition, minimum payout thresholds and downline contribution requirements are creating friction—if distributors don’t hit required sales volumes, they don’t get paid, leading to frustration and drop-off.

To stay competitive, direct selling companies must rethink how and when they pay distributors. Offering faster payouts and flexible payment methods (including gift cards) can increase engagement and reduce churn.

Retention remains a top priority for direct selling executives. Many organizations acknowledge that distributors lose motivation when payouts are delayed, complex, or tied to unpredictable downline performance.

Organizations need to be open to exploring new strategies to keep distributors engaged, such as:

✅ Quicker payouts (daily or weekly, instead of monthly)

✅ More frequent compensation touchpoints (lowering the payout threshold)

✅ Loyal seller programs that incentivize ongoing participatio

By integrating more frictionless payout methods, including prepaid cards and gift cards, companies can provide faster, lower-cost payouts that keep distributors engaged without changing compensation structures.

Throughout the summit, real-time payments emerged as one of the most talked-about innovations in the industry. Many see this as a must-have to remain competitive.

Some organizations admitted that they had tested affiliate-style models and failed, meaning direct selling still thrives on people-centric recruitment and retention. But they acknowledged that modernizing payouts is critical to making the model more attractive to new distributors.

Direct selling companies that provide instant payouts, without adding unnecessary costs, will have a competitive edge in distributor retention.

One of the clearest takeaways from the Direct Selling Summit? Companies aren’t looking to change their entire business models—but they are looking for smarter ways to pay their distributors.

Key opportunities for Direct Selling companies

✅ Offer faster and more frequent payouts (to compete with gig economy jobs)

✅ Use gift cards and prepaid options to cut costs while keeping payouts attractive

✅ Explore real-time payments as an option to drive engagement and retention

As the industry navigates these challenges, one thing is clear: Payouts are no longer just an operational necessity - they’re a competitive advantage.

What's next? 

Missed the event? We’re continuing conversations with direct selling leaders about how to modernize payouts for better distributor retention and engagement.

Want to learn more about flexible payout solutions for direct selling? Talk to our team today.