You have surely heard of network marketing or multi-level marketing (MLM). Chances are that you have been on the receiving end of MLM pitches from friends or family. You may even be an active member of any of the numerous MLM companies. But how well do you actually know the network marketing business? Did you know that network marketing was first introduced as a business model by Nutrilite in the 1940s? Or that Amway’s all-time top distributor, Dexter Yager, made $12 million in a year. What about the fact that 50% of distributors who start partaking in an MLM business drop it inside the first year?
Turns out there are numerous things most people don’t know about the history, companies, distributors, consumers, and entrepreneurs of MLM business. So here we are going to have a look at the top MLM stats for 2021.
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General Network Marketing Statistics & Facts
Do you know how network marketing turnover around the world annually is? Or which are the leading countries in MLM sales worldwide? Did the network marketing business expand or shrink compared to the previous year? Find out the answers to these questions and more in general network marketing statistics.
MLM Company statistics – Network Marketing Industry Worth 2021
You must have surely heard of the big-name network marketing companies such as Amway, Herbalife, Avon, Mary Kay, etc… How did these companies fare over the last couple of years? Let’s find out through MLM the statistics about these companies.
- 1 out of 5 homes in the USA owns at least one Amway product. (Ref : Amway)
- Amway made a yearly revenue of about 8.5 billion USD in 2020.(Ref: Statista)
- Amway maintained its position as the top direct selling company in 2020. (Ref: DSN Global 100)
- Amway suffered a 4.5% revenue slump in 2019.(Ref: Forbes)
- Amway has distributors in over 100 countries. (Ref: Amway)
- Natura & Co recorded the second position on the list of top direct selling companies in 2020. (Ref: DSN Global 100).
- Their revenue for 2020 was $7.16 billion. (Ref: DSN Global 100)
- Herbalife came in at third position with a revenue of $5.5 billion. (Ref: DSN Global 100)
- Herbalife functions in over 94 countries with a network of around 4.5 million autonomous sellers and members. (Ref: Wikipedia)
- Avon’s revenue for 2020 was $3.63 billion. (Ref: Statista)
- Avon’s annual sales suffered a decline compared with the previous year’s 4.76 billion.(Ref: Statista)
- Mary Kay has a salesforce of 3.5 million worldwide. (Ref: Wikipedia)
- Direct selling businesses with membership in DSA follows the DSA code of ethics and gives 90% buyback on starter-kit purchase by new recruits.(Ref: DSA)
- Direct selling has recorded a 6% dip in Canada in 2019. (Ref: WFDSA)
- Direct selling businesses with membership in DSA follows the DSA code of ethics and gives 90% buyback on starter-kit purchase by new recruits.(Ref: DSA
- Direct selling has recorded a 1.5% growth in Canada over the last 5 years.( Ref: WFDSA)
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Network marketing Distributor statistics
Distributors are the heartbeat of any MLM network. How many active distributors are there around the world? How much does an average MLM distributor earn? How many hours of work do they put in each week? Let’s find out through these network marketing statistics about MLM distributors.
- 62% of members participate in network marketing to earn long-term supplemental income. (Ref: DSA).
- 25% gains the desired profit they intended for while entering the business.(Ref
: Jobs in Marketing).
- Only 12% of members earned over $5,000. (Ref: Jobs in Marketing)
- According to the surveys, 25% of members earned profits through network marketing. (Ref: AARP)
- About 10% of sellers make over $100 weekly. (Ref: Jobs in Marketing)
- By the end of 2019, the number of sellers increased to a huge 119.9 million around the globe. (Ref: WFDSA)
- Network marketers work for an average of 13.3 hours per week.(Ref: AARP)
- 10.5 million people take network marketing as their full-time profession. (Ref: WFDSA)
- 42.9 million people consider direct selling as a part-time career option.(Ref: WFDSA)
- Over 64.9 million independent distributors work in the MLM industry.(Ref: WFDSA)
- 99% of network marketers are high school graduates, and 52% of them hold a degree or have graduated from a college. (Ref: DSA)
- The average retail sales of a network marketer were $5176 in 2019. (Ref: DSA)
Couples as Distributors
Network marketing has emerged as a solution for couples as a solution for their financial problems. The newly found work-from-home capabilities of the business and the importance of teamwork in network marketing make it the perfect opportunity for couples. They get to experience success together and work hand-in-hand towards their dream life.
Some of the biggest earners in the network marketing business are couples. The Dutch couple Igor Alberts & Andreea Cimbala of DagCoin – Success Factory have earned over 150 million dollars in the business. Ivan & Monika Tapia of IM Mastery Academy and Trin & Jirawan Vichaidith of Nu Skin are also some of the biggest earners in Network marketing. Jeunesse Global, Herbalife, and Amway are the network marketing companies that hire most couples as distributors.
The new normal in Direct Selling Industry: Facts during covid
- The direct selling industry generated 179.3 billion $ worldwide in sales in 2020.
- 40.1 billion of this was generated in the U.S alone.
- This constitutes 22.3% of worldwide sales.
- Over 125 million new members joined the direct selling industry as new distributors in 2020.
- This is a 4.3% increase from 2019.
- Health and wellness were the most popular sector in direct selling bringing in a revenue of over 60 million dollars, constituting 36% of the global sales.
- Cosmetics and personal care came in second with over 45 million dollars in sales.
MLM Product statistics
Numerous companies with a wide range of products deploy the network marketing business model. Wellness products, household goods, cosmetics, accessories, financial services, etc… constitute the majority of MLM products. Let’s have a look at some of the interesting network marketing statistics about MLM products.
- Wellness products held a market share of 35.6% globally in 2019-20. (Ref: WFDSA Annual Report 2020)
- Household goods and durables contribute to 11.5% of global sales.(Ref: WFDSA Annual Report 2020)
- In 2018-19, wellness products shared 33.2% of sales contribution globally.(Ref: WFDSA Annual Report 2019)
- In 2019 Cosmetics and personal care constituted 31.5% of network marketing annual sales.(Ref: WFDSA Annual Report 2019)
- Clothing and accessories made up 6.1% of the annual network marketing sales. (Ref: WFDSA Annual Report 2020)
- 3.9% of MLM sales come from financial services.(Ref: WFDSA Annual Report 2020)
- Food and beverages contributed an annual share of 3.1%.(Ref: WFDSA Annual Report 2020)
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Network marketing Consumer statistics
Consumers are the end-users upon whose satisfaction, the whole industry revolves around. Customer satisfaction is one of the most important things in network marketing because so much depends upon the relationship between the customers and the distributors or the company. Here are some interesting MLM statistics about consumers.
- 36.6 million people have purchased products or services from a multi-level marketing business.(Ref: Jobs in Marketing)
- In 2020, 7% of direct sellers are between the age of 18 to 24.(Ref: WFDSA Annual Report 2020)
- People aged 25-34 make up 19% of the global network marketing crowd in 2020.(Ref: WFDSA Annual Report 2020)
- About 26% of network marketers are from the age group 35-44. (Ref: WFDSA Annual Report 2020)
- 25% of network marketers are between the age group 45-54.(Ref: WFDSA Annual Report 2020)
- 23% of network marketers are of the age of 55 and above. (Ref: WFDSA Annual Report 2020)
As you can understand from these statistics, network marketing is not at all a risk-free trade, as some companies and distributors would have told you. The truth is that most people who go into the MLM business don’t make much money from it.
Here we have provided an accurate description of MLM facts. Success in network marketing can only be achieved only through commitment, hard work, and commitment.