These key (often overlooked) metrics tell the true story of your business.
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There’s no shortage of data in direct selling. Compensation reports, sales metrics, churn rates, retention figures—if you wanted to, you could spend every waking moment staring at spreadsheets.
But there is a shortage of data comprehension, or even data attention. The real question isn’t how much data you have. It’s which data points truly tell the story of your business.
Most companies focus on the obvious—total revenue, recruitment numbers, active distributors and customer orders. All of that is important, but if you want to really understand the trajectory of your business, you need to start paying closer attention to a few key numbers that too often get overlooked or maybe have never been considered at all.
Here are five metrics that I often help my clients track in more detail as we work together to create what I call a KPI culture. There are obviously more details and depth that could go into each one, but my hope is that these short descriptions spark some thought for you and your company.
1 / Compensation Plan Payout as a Percentage of Total Revenue
Every direct selling company tracks compensation payouts in some way, but the way you track it matters. Many companies track their compensation plan payout as a percent of total sales, but I’m often surprised how many blank looks I get when I ask for this number from clients.
Many companies look at payout percentages based on commissionable volume or some adjusted revenue number—and while that’s helpful, I’m a big believer in keeping it simple and straightforward. At the end of the day, we need to know how much of every dollar is going out in the compensation plan.
Why? Because commissionable volume is often an internal number that doesn’t reflect your business as a whole. Looking at total revenue (or total sales) gives you the clearest, most honest assessment of what you’re actually paying out relative to what’s coming in. It’s up to you how you account for shipping revenue here. It also allows you to benchmark against other companies and see how sustainable your plan really is over time.
2 / Paid-As Rankings of Leaders
My mentor Alan Luce used to say that if you could only track one number in direct selling, this should be it.
Most companies track the number of active leaders in their field. But what does “active” really mean? Are you looking at their title? Their engagement? Is it a recognition measure? Or are you tracking the number of leaders who actually qualify at a leadership level every month?
We all know there can be a wide gap between the “recognized as” level and the “paid as” level. That’s why tracking this is so telling.
The distinction is important. Just because someone has a leadership rank doesn’t mean they’re earning at that level. This metric tells you how many of your top leaders are actually maintaining the right behaviors each month. If that number is trending downward, it’s an early warning sign that your leadership pipeline is weakening. If it’s trending up, not only are things good now, but there’s probably even more coming.
3 / Purchasing Segments for Customers and Distributors
Most direct selling companies are laser-focused on customer acquisition—how many new people are buying from us each month? That’s important, but if you’re not paying just as much attention to customer repetition, you’re missing half the story.
What you need to understand is how often and how much your current Customers and Distributors purchase from you over the span of 12 months. This isn’t just about tracking “active customers” or “monthly volume.” It’s about segmenting your base so you can see clear behavioral patterns that shape everything from promotions to product launches to retention strategies.
Here’s how I like to break it down:
Assign all your Customers and Distributors (separately) into one of these five buckets based on how frequently they purchase within a 12-month period:
- One-Time Buyers: They made a single purchase in the year; that’s it.
- Occasional Buyers: They made 2-3 purchases in a year.
- Consistent Buyers: They purchase on a somewhat regular basis (e.g., quarterly).
- Loyal Buyers: They buy almost every month.
- Power Buyers: They purchase frequently and represent your best customers or distributors.
You’ll be shocked at the gap between your one-time buyers and the rest of your list. This data will spark all kinds of new ideas for customer engagement, promotions and more.
4 / Acquisition Segments for Customers and Distributors
When we talk about acquisition in direct selling, most companies immediately think of recruiting new Distributors. But acquisition isn’t just about recruitment—it’s about both Customer and Distributor acquisition. Segmenting your data properly will give you a much clearer picture of your business’s real health.
To do this, create two separate acquisition segments—one for Customers and one for Distributors.
Sort all Distributors into the following categories based on how many new Customers they’ve acquired in the last 12 months:
- 0 Customers
- 1 Customer
- 2-3 Customers
- 4-6 Customers
- 7-10 Customers
- 11-15 Customers
- 15-20 Customers
- 20+ Customers
Now, do the same for how many new Distributors each person has recruited in the last 12 months:
- 0 Distributors
- 1 Distributor
- 2-3 Distributors
- 4-6 Distributors
- 7-10 Distributors
- 11-15 Distributors
- 15-20 Distributors
- 20+ Distributors
Tracking these numbers over time reveals critical insights:
- How many of your Distributors are actually bringing in Customers versus just recruiting?
- How many are doing neither?
- Are your best Customer-acquirers also your best recruiters—or are they entirely different groups?
The trends you uncover here will shine a bright light on the real drivers of your business and help you make smarter decisions about training, incentives and marketing strategies.
5 / Fast Start Production for New Distributors
Most direct sales companies have a Fast Start Program. And most try to accomplish way too much with it.
Fast Start should do two things:
- Help every new Distributor get early wins.
- Identify potential up-and-comers.
But instead of just tracking Fast Start completions, take it a step further. Break down how many new Distributors hit each tier of your Fast Start Program. If you have a 90-day program with three tiers, track:
- How many hit Tier 1?
- How many hit Tier 2?
- How many hit Tier 3?
- How many hit none at all?
Then, ask the most important question: What do these achievers go on to do after Fast Start ends?
Look at their performance over the next 12 months:
- How much volume do they generate?
- How many Customers do they acquire?
- How many Distributors do they sponsor?
This data does two things:
- Helps you refine Fast Start. If few Distributors hit Tier 2 or 3, your expectations may be too high. If Tier 1 achievers aren’t progressing long term, you may not be equipping them properly.
- Helps you set better expectations. Instead of guessing, you’ll know exactly what each Fast Start segment is likely to produce long term. And you may be willing to invest more in it with that understanding.
Fast Start shouldn’t be about cramming everything into 90 days. It should be about setting up new Distributors for real success—both now and later.
Final Thought: Data Is Only as Good as What You Do with It
None of these metrics exist in a vacuum. They’re all connected.
A drop in fast start production will eventually affect leadership ranks. A weak second order rate will hurt your customer retention. If only a small percentage of your field is recruiting, your growth will stall.
But here’s the good news: when you track the right data, you can actually do something about it before it’s too late.
Are you tracking these metrics? And more importantly, are you making decisions based on what they tell you? Because in the end, the best companies aren’t just the ones who have the data. They’re the ones who actually use it.
Brett Duncan 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. From marketing services to compensation plan design to operations and distribution support, Strategic Choice Partners is a frequently sought-out partner within direct selling.
From the May/June 2025 issue of Direct Selling News magazine.
