Direct selling has become a popular business model over the years. Before achieving this success, there were many risks they were facing. Legal and regulatory compliance, compensation plan, distributor and customer attrition, security threats, competition, operational risk, brand identity, financial risk are some of the risks.  

Legal and regulatory compliance is the most common risk faced by the direct selling companies. Direct selling companies were penalized for breaking the barriers. Compliance automation should be incorporated with the system to detect policy violations and identify associated risks. Try to publish income disclosure statement every year. A clear earnings statement will stand as a testament to your brand credibility.