Big Data & The Direct Selling Industry, What’s The Connection?

2020-06-30 by Dhanesh Haridas

The direct selling industry contributes a major part in the world’s economy and the distributors often choose it as a part-time or full-time earning source. If its popularity is too high in the world market, there arise lots and lots of complexities.

Experts think Big Data is the best solution to eliminate all the possibilities of limitations in the direct selling industry.

How far is this opinion reliable? What exactly is Big Data? How is the data processed to predict the future of your direct sales business?

There are many such questions to answer and this article provides you a comprehensive note covering all such queries.

What is Big Data? How is it clubbed with direct selling?


Big Data isn’t a new kid on the block and has been a killer idea since its inception back in 2005.

Yes, data is important and it’s the best way to analyze a business.

It’s this analysis that makes the entrepreneurs come up with decisions that can bring good fortune on their journey and become a popular brand.

Let’s say you’re into business and started your own direct selling venture with cosmetics products. Even after a year or more, you haven’t got the expected turnover, what might be your first instincts?

Am I falling apart? Was my decision lame to begin my own business? What am I missing in my business? Are the customers happy enough to buy my products?

To answer every such question, what exactly do you need?

Yes, you need to look at the working process of the year to understand the reason for falling down. In short, you need the previous year’s data to analyze the complete business journey.

You cannot just look into complete data overnight, and need to work on it for a good period of time or appoint a team to find a solution.

There comes the importance of Big Data and that’s how things get easier and smarter. Big Data uses all the data extracted from various sectors within this direct selling organization and analyze it perfectly.

Cosmetics find infinite possibilities in both the offline and online world. Obviously, digital marketing is a part of such marketing technique and alongside other sorts of data are stored in excel sheets, etc.

These two falls under two categories called structured and unstructured data. Data available in a spreadsheet or similar scenario is considered as structured and the email, image, video type of data falls under unstructured data.

Traditional database systems can only analyze structured data whereas Big Data can analyze both types of data to find business patterns that help to analyze what happened in the past times.       

In short, after a year when you look back and see what happened in the past time, Big Data can help out and analyze data. After analyzing, a perfect report will be provided and the missing side can be addressed and the necessary actions can be taken to become tagged as a “successful or popular brand’.

After all, everyone dreams of becoming such a popular brand.

A simple explanation, Isn’t it?

Now that you've got a better understanding of the basics we shall go for the advanced side and its need in direct sales platform.

How do Big Data work in a direct selling platform? – An advanced version!


Like I mentioned in the earlier section, Big Data is best for data analytics and it collects all the information (data) from every sector to provide useful business insights.

Normally, in the present world of home-based business, a separate set of the team is appointed to analyze the business flow. After collecting the data, it’s the analytics team from the data warehouse who needs to analyze the data and find a pattern.

Historical data is the best way to analyze the data and is generated after the big data analysis. This includes all the forms of data from various available sources of direct selling organizations like press releases, log files, financial reports, etc.

Not every entrepreneur is sure about how things work with data, and it’s more like a 50-50 situation. How to use data effectively remains a constant dilemma point and you just need to plug in such a viable option to enhance a better business solution.

In the direct selling business, the major goal will be to boost productivity by analyzing the data.

Let’s see how Big Data is going to make a revolution.

Customer Insights: Customers, the initial priority of a business seems to have different opinions and characteristics. How to understand their choices and interests?

Proper insights can do the task and Big Data is up for it!

With such useful customer insights, the job will be done and this includes the following benefits.

  •  Make the churn rate low

  • Make the business dissatisfaction factor little as possible

  • Increase the customer-base or growth rate

  • New and attractive business plans or offers can be introduced to mark every customer and convert them into sales

  • Reflect these changes in the revenue side i.e., more you know about the customer more the sales, and thereby more revenue can be achieved!

Sales & Workforce performance over a glance: Yet another portion explored using the data analytics. Just like I mentioned earlier, boosting productivity is often accompanied by rocketing up the sales volume.

The performance of the distributors can be analyzed using this data, and check whether the workforce is active or not. Important aspects grabbed from sales and the distributor side will be,

  • From the business activity tracking and reports, insights can be compiled up that measures the activeness of distributors in the network

  • The activeness is calculated by checking the sales volume of the distributors from the time of joining

  • In the case of network marketing business, the downline and upline member activities can also be used for analysis

  • Ultimately, Big Data measures the performance of each and every distributor in the business network and creates a business pattern

  • With predictive or prescriptive analytics (the final phase of Big Data analytics), the degrading performance of the distributors can be pumped up using new methods

  • The methods so predicted will be developed using the latest technology and bring back the business to a better sales point of view state

Marketing plans & improvements: If you’re reading this article then for obvious reasons you know about the compensation plans or simply the marketing plans. Without just blindly picking a marketing plan, you can customize the rules and other parts in a flexible way beneficial for both organizations and distributors.

Not just that either in direct selling or MLM, a compensation plan is the basic thing and needs keen observation to choose one.

For beginners, you can use the available data which you own for analysis. Data from external sources can be used only without violating privacy terms.

  • Like I said, with enough data, one can easily choose the marketing plan that suits the business style and requirements

  • Improvements can be implemented if the existing marketing model isn’t so promising

  • A better and reliable version can be implemented as a new strategy

In this passion, direct selling and MLM business can use Big Data to form a marketing style that can live up to the customer expectations.

In short, with Big Data the data of any sort is used for analytics and instead of single system analysis, a distributed node structure is used as data cannot be stored in a single processor or a system.

Every piece of data used in the direct selling business can be instrumented for improving the business strategy.

How to implement Big Data in your direct sales business?


So far you’ve got enough idea about the big data and it’s time to know how it’s implemented into your direct sales business.

Automation is a necessity and direct selling software is the best available option to control, organize, and manage marketing business.

Big Data is available in direct selling software developed from some big heads like Epixel to analyze the working flow of distributors, the sales and marketing methods, and much more like explained above.

With such intelligent analytics, business owners can make the necessary adjustment and implement new techniques to find the way through!

Better days are coming and no more lay off in your business journey!

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Dhanesh Haridas

Dhanesh Haridas

Epixel MLM Software

Dhanesh Haridas, co-founder and CTA at Epixel MLM Software has been designing and developing enterprise-level software solutions for more than 12 years. Has expertise in eagerly studying emerging technologies and relating how they can be integrated into different environments. His areas of interest include cryptocurrency, blockchain technology, IoT, AI, BI, software development, etc.

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