So how did they solve it? Well, putting aside other sects, the Six Paths Demon Sect chose to split the sect into three major layers, each one split from the other yet still adherent to the same overall body. The split was based on the theory of Daoism, which formed the nine levels of mortal cultivation.
The lowest layer was the Six Paths Halls, which were split into the Hungry Ghost Hall, the Wild Beast Hall, the Divine Deva Hall, the Desolate Hell Hall, the True Human Hall, and the Asura Blood Hall. Each hall had the same structure and was a part of the Six Paths Halls, which was a part of the Six Paths Demon Sect.
However, the halls were like their own mini sects, which was how the split-layer system of the Six Paths Demon Sect was intended to function in the first place. So they each had their own Sect Master (Hall Master), Elders (Path Lords), and disciples (Path Walkers), as well as some of the various arms of government.