How to successfully navigate risk and innovation in direct selling.
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Estée Lauder wrote in her autobiography that “Risk taking is the cornerstone of empires.”
In my work as an attorney, I help clients navigate the technical aspects of business—corporate structuring, taxation and compliance. But my greater goal is to empower entrepreneurs to think beyond compliance and to instead cultivate creativity. Risk is inherent to entrepreneurship, and it’s not something we can afford to avoid. In fact, the true danger lies in letting fear of risk paralyze us.
Risk is not a binary concept; it’s a spectrum. Some entrepreneurs shy away from it, while others embrace it as part of their journey. In the direct selling industry, risk is inescapable. It is woven into the very fabric of entrepreneurship—what sets successful companies apart is not their ability to avoid risk, but their capacity to avoid ruin and navigate it with vision.
At the Crossroads
Today the direct selling industry is at an inflection point. Last year brought many changes to the industry. We witnessed the Federal Trade Commission issue guidance in 2024 that ignored case law and rescinded previous guidance, while numerous well-known brands exited the direct selling space for what some, but not all, called an outdated business model.
These changes are much more than logistical quirks; they present a deep philosophical moment for the industry. The direct selling industry is being invited to redefine what it means to take risks and build something that has lasting value as opposed to fleeting infatuation.
My plea for 2025 to all those within the direct selling space is to have the courage to be disliked.
One book that profoundly shaped my thinking on this subject is The Courage to Be Disliked by Fumitake Koga and Ichiro Kishimi. The book follows a dialogue between a youth and a philosopher. In one powerful exchange, the philosopher advises, “All you can do with regard to your own life is choose the best path that you believe in.”
This insight struck me deeply. It can easily be applied to companies. In direct sales, too often, decisions are made not based on what the entrepreneurs believe to be right, but on external pressures and expectations. Maybe that’s shareholders or maybe it’s the latest social media fad that’s taken off for whatever reason.
True innovation requires the courage to walk a path others may not understand or approve of. Long-term success is not achieved in the moment, it takes years to be an overnight success. Stop leaning into another’s dream.
A Modern Version of Success
The direct selling dream should be enriching lives, not buying Bugattis and Rolexes. Community, not the individual. Clean products, not cheap ones with high margins. There’s nothing wrong with making money, but the aim needs to be properly placed.
Direct selling companies seeking to compete directly with influencers, ecommerce and traditional retail is like a plane having lost its engines—it will hover for only so long before it hits the ground. There’s simply no power behind the movement.
Today, too many direct selling companies are driven by external noise—market trends, consumer demands or the opinions of critics and other detractors. The real challenge is not avoiding this noise but distinguishing between what is authentically right for your company and what is simply a reaction to the latest fad.
Risk, at its core, is not about avoiding controversy but about staying true to a vision despite external pressures. Yes, there’s risk in being disliked, but the greater risk is in seeking approval from every person, diluting your own voice and vision in the process.
As we look toward 2025, the direct selling industry faces an existential question: how will we choose to engage with risk? Will we continue to avoid the discomfort of risk in favor of fleeting trends, or will we embrace it as a transformative force that drives innovation and long-term success?
The most successful entrepreneurs will be those who see risk not as an obstacle, but as an integral part of their journey—those who commit to their vision and find strength in the face of uncertainty. If we’re to build a future that is both resilient and sustainable, we must learn to navigate risk with clarity, purpose and an unwavering commitment to the industry.
There’s a clear path forward if we’re ready. The only question is whether we will take it.
Clay Brewer‘s practice focuses on advising both established companies and startups on a wide range of matters such as business planning, capital raising, corporate structuring, regulatory risk and cross-border transactions. A prolific writer and thought leader, Clay provides strategic counsel to clients and has a strong interest in the evolving direct sales industry as well as digital assets and blockchain technologies.
From the March/April 2025 issue of Direct Selling News magazine.
