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. 

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