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Solving the scalability problem for direct sellers

Aug 23, 2018

The challenges facing direct sellers, and how the right payment provider partnership is key to helping MLM businesses thrive

The direct selling sector has gone from strength to strength in recent years. The industry was worth $36 billion in the U.S. last year, and more than five million Americans now go out independently to sell their products, often managing vast customer bases, and sponsoring others to join the direct selling ranks.

And this is just the start. With the rise of eCommerce and even mCommerce, we can expect the sector to grow even further, giving sellers – established and fledgling – the chance to engage with not just local customers, but with markets around the world. More, these technologies offer the opportunity for products to be purchased quickly and efficiently across international borders.

What’s holding direct sellers back?

To harness these opportunities though, businesses need to be able to scale up when necessary. This can be a challenge for direct sellers. Such small businesses may not have the resources and infrastructure available to them to help them access new channels, particularly when it comes to accepting customer payments.

Direct sellers need the right support to accept not just card payments, but alternative payments, such as eWallets or invoicing, as well, to meet consumers’ ever-changing purchasing needs. More, they need to be able to accept both in-country purchases, and cross-border ones too. Fail to get this right, and a business may be doomed to fail.

Making matters worse is the fact that many direct sellers struggle to open a merchant account. Traditional banking services providers are often reluctant to onboard direct sellers as the industry is linked with unpredictable growth patterns. It also has a reputation for chargeback fraud – small businesses like direct sellers often lack the infrastructure to identify fraudulent behavior before it becomes a problem. 

Overcoming obstacles

So, how can direct sellers overcome these challenges and take advantage of the opportunities presented by a booming market?

Quite simply, they need the right payments partner to support their payment needs. An ideal PSP will have an in-depth understanding of the industry, and the issues facing direct sellers. They will be able to provide one-on-one support to your business as it grows from a nimble start-up to a well-oiled enterprise, offering you not just the technological solutions you need, but the guidance as well, helping your business expand as smoothly as possible.

This kind of partnership with direct sellers is something Paysafe has been doing for many years. We have a great record supporting businesses in the industry, so have experience in helping them to address the unique challenges they face.

Working with payment specialists with this industry-specific expertise can ensure your direct selling business has the exact solutions it needs to take full advantage of the growing opportunities in the domestic  and international markets.

Partnerships are key

With the right payment support, all direct selling businesses – big and small – can grow and thrive. Working with a partner that specializes in the industry, you can be confident you have the tools and guidance you need to compete in a fast-changing market.

If you want to learn more about the challenges facing the direct selling sector, and explore how Paysafe can help your business, take a look at our new downloadable feature, Tackling the Payment Problems that Keep Your Direct Selling Business from Scaling.

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