Direct sales businesses are incorporating strategies for improving distributor retention in network marketing by first identifying why distributors drop out. Key challenges include unrealistic expectations, lack of proper training and mentoring, poor motivation, overly complex compensation plans, insufficient recognition etc. To resolve this, companies adopt strategies such as implementing effective onboarding that generates early success, offering ongoing training and development, and simplifying compensation structures to deliver quick and clear rewards. Creating a supportive community with recognition programs and team-building activities fosters emotional connection and loyalty.