Written by Brett Duncan. Brett specializes in helping direct selling companies evolve into modern social selling models while still maintaining the culture and essence of who they are and what makes them different. He is co-founder and managing partner of Strategic Choice Partners, a business development firm that helps direct selling companies take their next steps.
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I’ve had a front-row seat in watching and even helping several direct selling companies navigate the shift toward affiliate marketing. Some have introduced affiliate programs alongside their existing structure. Others have restructured their compensation plans to be more affiliate-friendly. And a few have made the full transition from direct selling to an affiliate model. It’s easy to have all kinds of opinions about these pivots, and armchair quarterback the whole situation. Through it all, I’ve learned a lot.
One thing I’ve learned is this: in almost every case, if the current structure/model/approach of the company was working at a satisfactory level, most executives wouldn’t stray from it. So while it’s easy to chastise those who are making such moves from inside direct selling, it’s important to recognize that what they had wasn’t working the way they wanted it to. Something had to be done, and this just happened to be the route they chose, for better or worse.
I happen to believe there’s still a great opportunity for direct selling companies to learn from and leverage the affiliate marketing space. Just because the jury is still out on those who went first doesn’t mean there’s not something there. So it’s important we take a step back and try to learn what we can about what’s taken place so far.
What Does “Affiliate” Even Mean?
For some companies, calling it an affiliate program simply means they now run a single-level compensation plan. Others use “affiliate” to describe a model that leans heavily on retail sales commissions. Some think of it as more of a referral program, and then there are those who just like the sound of it—rebranding Distributors as Affiliates to make the company seem trendier.
The point? When you hear “affiliate,” ask for specifics. The definition isn’t one-size-fits-all, and that’s part of what makes this shift so tricky.
So why are direct selling companies exploring affiliate programs? The motivations vary, but here are the most common ones I’ve seen. By listing them I’m not necessarily endorsing or condoning them. I’m simply sharing what I’ve seen.
The Financial Realities
At the core, many companies are making this shift because their current model just isn’t working financially. The economics of direct selling have become challenging. Margins are tightening. Operational costs are climbing. Compensation plans that once drove growth now feel unsustainable. Some companies see affiliate marketing as a way to streamline their payout structure, reduce expenses, or both.
The Temptation to Attract Affiliate Marketers
The direct selling industry looks at the success of affiliate marketers and thinks, “They should want what we offer!” That’s not completely wrong—but it’s also not completely right.
Affiliate marketers and direct sellers may share some common ground, but they operate in fundamentally different ways. Direct sellers build teams, nurture relationships and often create a sense of community around their businesses. Affiliate marketers, on the other hand, are typically focused on one thing: conversion rates. They optimize links, analyze commission structures, and constantly test what drives traffic and sales.
Influencers and Creators (who often get lumped into the “Affiliate” bucket we refer to) are building a personal brand, looking for partners that help them do that (and not the other way around).
If a direct selling company wants to attract affiliate marketers, it has to understand what actually appeals to them—and it’s rarely just a repackaged compensation plan.
The Simplicity Factor
There’s no denying that many direct selling compensation plans have become incredibly complex. In contrast, affiliate programs often feel refreshingly simple. Flat commission structures. No downlines to manage. Clear-cut payouts.
This simplicity is attractive, especially for companies looking for a more modern approach to compensation. But it’s also a double-edged sword. Simple is good—until you realize that what made direct selling unique was the depth and engagement that a strong downline structure created. Stripping it all away in the name of simplicity doesn’t always yield the results companies hope for.
Recruiting is Down
Simply put, many companies are trying affiliate programs because they’ve tried every promotion, incentive and campaign in the book to get their direct sellers to go sponsor other direct sellers. And it’s just not happening.
Affiliate programs can look like a fresh new option.
The Fear of Distributor Exodus
Let’s face it: Distributors today are not as exclusive as they used to be. Many are dabbling in multiple opportunities, whether that’s another direct sales company, an affiliate program, or even their own digital brand.
Some companies introduce an affiliate program not because they’re excited about the model, but because they’re trying to keep Distributors from jumping ship. The hope is that by giving them a way to earn commissions without requiring team-building, they’ll stick around. It’s not a bad idea—but it doesn’t always translate into long-term success.
The Regulatory Wild Card
A few years ago, regulatory scrutiny put the direct selling industry on edge. And we’re definitely still there. Some companies started looking at affiliate marketing as a backup plan—something they could fall back on if they ever had to move away from downline commissions due to regulatory pressure.
While the industry seems to have found more confidence in its standing, the idea of a Plan B hasn’t gone away. Some companies still see an affiliate model as a safeguard, just in case things take an unexpected turn.
More Than Just a Compensation Change
If there’s one thing I’ve learned, it’s this: Switching to an affiliate model is about much more than compensation.
Affiliate marketers operate in a completely different world. They care about conversion rates way more than commission rates. They want seamless tracking, automated payouts and scalable digital marketing tools.
Companies that think an affiliate model is just about paying differently often find themselves struggling because they haven’t adapted their marketing, systems and messaging accordingly.
So, Where Do We Go from Here?
There’s no doubt that most direct selling companies that have dabbled in affiliate programs haven’t seen the results they hoped for—at least, not according to what’s been made public. But that doesn’t mean affiliate marketing is a dead-end for the industry. It just means we haven’t cracked the code yet.
Direct selling has a unique value proposition. Instead of abandoning what makes it special, companies need to get clear on where they truly fit in today’s market. That may include affiliate elements. It may not. The key is knowing the difference between chasing a trend and making a strategic move.
We don’t have all the answers yet. But one thing is certain: The companies that succeed will be the ones willing to define their own path, rather than just follow where everyone else is going.
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