Throughout the world, there are approximately 50 million network marketing distributors. *, Direct selling requires only a minimal start-up cost of $82.50 when compared to other industries.*. You must have JavaScript enabled to use this form. Sales need to focus on the younger generation too as they are the future and having their trust in a product means a lot. List of Top 100 MLM Earners 2020, Top 5 Network Marketing Companies for the Year 2017 In India, Key To Success In Network Marketing In 2021, Importance of Selecting the Right MLM Plans in Direct Selling, Top 5 Fastest Growing Network Marketing Companies in 2021, Lessons From The Lockdown 2020 – Direct Selling Industry. I am very (...). After all, the meaning and the goal of this business model is to sell products and if the product selling is not the goal then you have to take a close on it as it falls under illegal pyramid schemes. The Distributors. Influencer marketing is gaining more traction and investment than ever before. First and foremost, it is important to recognize how well the business is established around the globe and the gross revenue generated each year to put your foot down better in your line of work. That sales data breaks down into four regions: Asia and the … agree to this point with ample earners as couples. By continuing you consent to our privacy policy. Clara very well understands how the trade goes on around the globe. With wellness products topping the industry in sales, Clara’s friends realised the potential revenue generation opportunity hidden in this business, and they did not have to think any further about getting into partnership with Clara. According to the surveys, 25% of participants made money through network marketing. There are many single-level marketing companies—selling products without a recruiting component—where the likelihood of generating income is much higher than typical MLM statistics. At some point in your life you’ve been pitched a multi-level marketing (MLM), direct selling, or network marketing business opportunity. *, 67% are inclined to the personalized service that direct sellers provide. Different age groups have different levels of criteria that make them pick a product from different available brands. It has always served as the easiest way to effectively communicate with them, and to build a bond of trust. Except as footnoted, figures for sales and independent representatives are based on the entire industry. Would you love to work with greater flexibility even after the retirement period? Korea maintains the third position among the retail sales list with $17.6 billion. Thanks to the advanced online meeting facilities available in today's tech world, it has been able to simulate a real experience with extra ordinary audio and video qualities. The betterment in technology has also made this approach seamless. There are thousands of direct selling enterprises that are striving hard to reach those exceptional sales figures. The majority of marketers plan to increase their marketing budgets this year, and Instagram is rapidly becoming the most widely-used channel in the industry. In 2020 and beyond, the network marketing industry is slated to remain one of the highest-earning industries in the global economic diaspora. So, if you were Clara, who is to set out a direct selling business to accomplish both professional and financial freedom, what probable data and statistics would you be looking into? Foodstuff and beverages makes an annual contribution of 3.1%. Let’s see some interesting stats that might help you to analyze if the industry is suitable for you or not. Best regards, The final entity or the important step in this ladder is the ‘entrepreneurs’. … You should know three things upfront. Even so, the future of the network marketing industry looks promising. Avon makes the third position among the top MLM companies list with a revenue of 4.76 billion USD in 2019. Now the plan is fixed. Even though Amway leads the top 100 MLM companies list in terms of sales revenue for the year 2019-2020, it is not the same in terms of popularity. (Updated list - 2021), Top 100 MLM Companies for 2021! Product consistency needs to maintain throughout their existence and customer fulfillment is a major battle to compact around. The Google Display Network reaches 90 percent of internet users worldwide. Most of such talks happened during social gatherings and similar occasions. With over $1.935 trillion in ecommerce sales, China was the biggest ecommerce market in the world in 2019. There are several countries that welcome foreign investors in boosting the growth of MLM companies. Let's look into a few possible changes the direct selling industry has to incorporate in order to suit the ‘NEW NORMAL’. *, 69% find supporting small businesses as an appealing attribute of direct selling. However, when it comes to the network marketing model, the first box so referred is free of cost, isn’t that interesting? Hearing this, Clara, who was already in search of a product to kickstart her direct selling business, now knew what it should be. There is no strict law that bans an MLM company from operating in any country in the world. Why Is Direct Selling Profit Is More Than Any Other Business? Worldwide … Social marketing is… A challenging, yet rewarding career where you run your own business and mentor a team; An opportunity to earn a little extra money and increase self-confidence and leadership skills; A way to work when you want, with whom you want, and how you want; Social marketing … However, Avon’s search interest began to decline after reaching its maximum. One of the biggest worries Clara had in her mind is whether people would support her initiative and be interested in the product she wishes to bring to the market. In 2018-19, wellness products shared 33.2% of sales contribution globally. Social media is yet another tool to perform sales and reach. However,like any other trade, things have changed in order to adapt to the new norms. Affiliate marketing is a global industry worth well over $12 billion. They renamed later into Southwestern advantage and the revenue they generated in 2019 is around $138M. Out of the top 100 lifetime earners, 45% of them are men, 17% are women, 34% are couples, and 4% are mixed-gender partnerships. Even when one gets off from the graze subscription they come up with new offers to retain them. Worldwide IT spending is projected to total $3.4 trillion in 2020, a decline of 8% from 2019, according to the latest forecast by Gartner, Inc. 63% of participants join network marketing to make money by selling products to customers. ('17), 74% of the new customers are women and 26% from men. We have done our best to incorporate the most useful information into this write up. Let’s see some more interesting facts about the distributors and some motivational facts. A study can be made to find the cause and how to overrule it as a perfect solution which remains stable for the future. Well, we are here with some useful insights to help Clara out with her journey in building a successful network. 91% of GenZers are interested in flexible income earning opportunities. Recent joinees in direct selling alone amounts to 60.5 million. At present, the value has gone down to 77. The below insights are generated from 2015 to the present day of companies Amway, Herbalife, Avon, Vorwerk, and Infinitus based on worldwide search popularity. (Source: IAB) Not only AM is growing fast, but it is already a massive global industry. Direct selling representatives spend an average time of 30 hours per week. Google Chrome recently announced that their built-in ad blocker will go global on July 9, 2019. Herbalife has been able to maintain their revenue through 2019. Clara is now all set with the list of pals from her friends circle to initiate sales pitching !!. With its help, direct sellers are successfully hosting online parties and knowledge transfer meetings, to keep the community together strongly. In 2019, wellness products marked 45% sales and cosmetics 28% sales in Australia alone. This particular group has to study a lot and at the end of the day, they go for industrial expert opinions and consulting. In 2019, the direct selling industry has made sales of about $180.5 billion. The COVID-19 pandemic has had a severe impact on every business. Nowadays, it is the … Amidst the COVID-19 pandemic all over the world, it is hard to differentiate an opportunity from threats, as every bit of the world borders on every single situation with fear these days. To enforce this without any flaws, companies are moving to virtual back-office platforms, which integrates all essential features needed to run a company as if it was running offline. Since it has become difficult to carry out the same selling process now, more and more direct sellers are moving to the online platforms to set up their virtual stores. The MLM company to hit the maximum points with peak popularity is Avon. Online campaigns, co-branding, point of purchase (POP) marketing etc. The best time is NOW!!. From there, her journey to successful home income began. This particular point has been constant trouble for direct selling companies and those who attained customer retention have survived for long. Marketing is an important aspect which has to gain enough boost in the digital world. 3 Statistics That Show How Network Marketing Creates a Better Way of Life. In 2017, record-breaking statistics have been witnessed in the industry with 116.7 million distributors. In 2019, Amway makes an annual revenue of about 8.4 billion USD and holds the #1 position in the top direct selling company list. Social Media Marketing We can help you with that part and make you clear with more facts. Direct selling has been and will always be the best platform to do business for your products and take in as a business model for marketing them to consumers. If they are happy with the products then they will be using it until something new comes up that satisfies their needs by means of new offers from other competitors, finding more satisfying customers for other brands, or anything that triggers the interests. Your email address will not be published. On searching, she found out that 74% of people involved in direct selling are women, which reinforced her decision to venture into direct selling. By working full-time, an individual is earning more in network marketing than in other marketing vertical. 63.5% of direct selling companies use person to person selling methods and find it beneficial. Even at a 25% success rate, these professionals are able to sell an average of two products per day, making their monthly commissions over $500. In 2018, Amway has made 2.3% growth in terms of annual revenue compared to that of 2017 revenue. Let's see which all countries top the industry worldwide and how much money they pull in each year. About 75% of the customer/direct sellers are women and 25% are men. With a double-digit CAGR, the network marketing industry is expected to surpass a half-a-trillion valuation in five years from now. When the talent unites with flexible timings, good understanding, and other aspects, companies hire or employ couples as their distributors. Amway has reported a 5% revenue decline for 2019. Most of the direct products were sold offline, since it was comparatively easy to demonstrate the product and also to have a one-on-one conversation with the customer. Direct selling is one of those industries that could turn the crisis into opportunity. 8,493 new home-based businesses start every day in the USA. Network marketingis basically just a different way of selling products to the end user. Over 6,400 salespeople work for Avon product selling alone in the US regions. People also find the industry a good choice after the retirement period. 15% of the digital media industry's revenue is accounted for from affiliate marketing. Basically, they sell a box of nutritious snacks with various combinations with a view of making people love healthy food. It is one of the most trusted ways of generating customer base. *, 88% of Millennials are interested in entrepreneurial opportunities. 35% of people find the industry as a short-term income and get motivated to become a direct seller whereas 29% of people stay long in this position. Based on the above stats, it is but obvious that as an industry, network marketing will have a great future. 5.1 million people found entrepreneurship opportunities in the direct selling industry. The success rate of MLM companies has gone up to 80% from 25% in the past five years. As the COVID-19 pandemic spread over the world, so did the worries about job security among the employees working in major industries. Amway comes second in the list with 10.5% couples as distributors, and doTerra and Melaleuca with 9.8%. The subscription can be made for two weeks interval, a month or more and is subjected to alter. 41% get motivated to become a direct seller by finding income potential and thereafter 50% continue in the industry. Start building your Network Marketing business with brand new Epixel MLM Software®. Growing diversity in product portfolios and increasing participation of self-employed marketing professionals have driven the industry’s growth to date. From the available resources and references, we have found out a count of about 80,000 boxes have been sold over a period of 6 months. The numbers also suggest motivation among people who choose direct selling as a profession. Now, they’ve expanded their networks across multiple countries. Graze is a UK-headquartered food manufacturing/selling company who implemented a graceful marketing model. Products will be manufactured at a low cost, which will increase the scope of profits on their selling prices. Referral marketing goes side-by-side linked with network marketing/direct marketing. The turn is now yours. The following statistics will help you learn more about the fact & figures about network marketing industry.If not about whether you believe it or not, but the truth is network marketing industry … Direct selling companies who have DSA membership follows the DSA code of ethics and offer 90% buyback on starter-kit distributors purchase. Distributors or salespeople in the industry have a major role to play and they choose this role either as a career or as a secondary income source. Top 100 MLM Companies in the world 2020 | The 2020 List of Network Marketing Company, Who Will Be The Highest Earner in Network Marketing? The average conversion rate in Google Ads across all industries is 3.75% on the search network and 0.77% on the display network. Sales figures are expressed at Estimated Retail level and exclude Value Added Tax. *, 79% of Americans consider direct selling as an attractive option for entrepreneurial opportunities. Would You Like To See How A Startup Increases Sales Using A Direct Selling Strategy? 27.9% of direct selling companies prefer party plans, 7.5% prefer direct orders as their business models. But from the data, it is clear that popularity isn’t the factor that makes people buy products. In the United States, sales in the network marketing industry are in the $30 billion range. Consumers are those end-users who ultimately use the products and remark their opinion at least in mind. Clara has started her journey to top the list with her masterful network of distributors. This case study tells how network marketing can be properly utilized with a unique idea and marketing plan. Online sales also helps in expanding the customer base without any geographical boundaries, which offers a great opportunity for business expansion as well. 1. Some of the key countries witnessing the success of network marketing include – US, UK, China, Canada, India, Germany, South Korea, Brazil, and Japan, among others. 15.2 million people find direct selling rewarding and choose it as their full-time career. Instead, sellers are now more focused on branding their company online by putting their time and effort into digital marketing. In 2020, network marketing businesses from around the world are slated to bring in an estimated US$ 200 million every day. South Korea is also among the top countries to witness stimulating growth in the direct selling industry. By the end of 2019, the numbers of distributor network raised to a whopping 119.9 million around the world. Fill up and remark your valuable comment. 3.9% of annual sales comes from financial services. Global Statistics. Multi-level marketing (MLM) or network marketing is a popular business model in several parts of the world. Implies the opportunity direct selling provides. A decline of 6.5% in revenue growth from 2018- 19 is observed this year. 118.4 million people worked as individual representatives in 2018, a growth rate of 1.6% when compared to 2017 stats. Due to its success rate, almost every country welcomes the network marketing business model. Companies can use the stats and customer suggestions to pull out the magnet and thereby acquire more customers. The company may have founded way back in the mid-’80s or after 2016 but if they have a good team with experience and talent then growth and brand recognition will be reflected easily in the sales revenue. Around 5,000,000 distributors work for Avon with average revenue of $2,080 per distributor. Here, we’re providing you with one of the direct selling companies who integrated innovative ways to improve the business using this particular business model. Here are those:-. Out of them, 53% of people made more than 5,000 U.S dollars. In the past decade, however, the business of network marketing has faced considerable flak from the public and the regulatory institutions. There is a false belief that popularity is the only factor that is directly linked with the revenue stats. The marketing world is dynamic and ever-changing — trends, technology, and tactics are never stagnant. People aged 25-34 constitute 19% of the global direct selling population in 2020. That's why it's critical that your business stays up to date with new developments in the industry — … The average cost-per-click in Google Ads across all industries is $2.69 on the search network … Like Steve Jobs once quoted, ‘Innovation is the ability to see change as an opportunity - not a threat’. Clara was surfing on the internet one day, she came across an article that featured a young woman entrepreneur’s success story, who used direct selling to reach out her fitness products to thousands of people successfully. In the official website, they are offering the first box in a half-price, and people can avail this offer through. However, there are more things you have learned before we help you come up with a solution. The top MLM … China, US, and South Korea are the top markets. They made a success story by their own effort, do you have similar innovative plans to make your marketing ideas work out well? More than 60 million sales consultants work in the MLM industry. I am a rep in the industry and I love the industry… Interesting Network Marketing Industry Facts. *, U.S. consumers have positive perceptions towards direct selling and this has remained stable over the past 10 years. A proper plan is necessary and that’s why they have something unique in nature. Since there is no limit to the number of people recruited in a network, these professionals can take the extra efforts to expand their networks beyond the conventions. Amway has employed 3,000,000 distributors with average revenue of $2,800 per distributor. 39% of the people stopped being a part of the network marketing business and the reason behind the decision is to stop pitching directly to family and friends. Network marketing is prevalent on all continents and is widely operated in developing and developed countries. The second-largest ecommerce market in the world … Almost every home has at least one product or received a service from the network marketing industry. (‘19). A decline rate of 14.54% in 2019 has been witnessed in Avon’s annual sales compared to the previous year’s revenue (5.57 billion USD). To give more insights to her partners, and to help them in their journey along with her towards developing a successful business, she was also ready with some important data. *, 77% of Americans are interested in flexible, entrepreneurial/income earning opportunities. One thing that needs immediate attention is which companies are already established in this field, and how well they sell the products. Statistics, facts, data and insights from the Direct Selling Association regarding the direct selling industry. While the pitch varies from company to company, it basically … SMEs are preferring the distribution of their goods through network marketing companies, primarily due to low investment and comparatively high returns. More efforts have to be put forward for younger, older generations to collectively call business as a complete world-class choice! (eMarketer) Advertisers increased … One of the biggest economic boons to the network marketing industry is the support of Foreign Direct Investment (FDI) policies. Product portfolios are being revamped, and the industry is also witnessing a strong uptake owing to the integration of social media and online marketing technologies. In the USA, Avon stays well ahead in terms of popularity with 85, Herbalife with 28, Amway with 22, Natura, and Vorwerk less than 1%. Come, let's dive in! Face-to-face meetings v/s Online meetings. A part of the revenue is shared with the distributors as commissions and bonuses depend on the marketing plan & criteria to achieve it, set by the companies. To answer this concern at first place, she needs to know about how good her choice of product is doing in the market. 58% 58% of the affiliate purchases was made on a mobile device in 2018. Southwestern publishing house is considered as the oldest direct selling company launched way back in 1855. E.g. Since this method has been able to gratify customers, it is one of the reason why direct selling is able to withstand the covid-19 crisis. 23% of the organizations in the network marketing industry focus on health and wellness… Not only that, it has been successfully able to provide an alternative income to many who lost their jobs during this destructive pandemic. The more engaged the distributors are, the more they earn. These companies started out with just a handful of promoters. Mr. David McConnell recruited Mrs. P.F.E Albee as his first woman sales representative, first in history. This comes as no surprise, as up to 70% of internet traffic comes from mobile devices and 39% … With their efforts and effective routines, they have been able to transform their lives as well as many others’ too. This staggering number is supported by the increasing cut-offs and commissions paid to distributors and direct sellers. The following statistics and insights show the entrepreneurship opportunities offered in the direct sales industry. The working or marketing style varies from one another in direct selling and normal sales. Currently, there are several companies operating as established players in the network marketing industry. The best thing about being a distributor for an MLM company is that they can work remotely with their own schedule. Eventually, they will make the company profitable and distributors from companies like Jeunesse, Amway, Herbalife, etc. The success of a direct selling company relies on its distributors and it’s a plain fact that they make a major contribution towards it. Now that Clara knows the industry she has chosen has the potential to make such amounts of money, any thoughts on what should be the next thing to scrutinize? The next one with a half-price and again a free-bee! But due to the restrictions imposed on such gatherings due to the outspread of pandemic, it has become difficult to form a fruitful connection with the client. (Google, 2019) Worldwide display advertising is expected to grow by 18.5 percent in 2021. I also noticed that some people were interested in knowing how many people became a millionaire; the network marketing millionaire statistics. In times when there was no technology or an omnipresent mode of communication, entrepreneurs used to conduct marketing activities by spreading the word, asking help from others, appointing people as promoters, etc. The flexible operability of MLM businesses makes their entry into international trade a lot easy. The World Federation of Direct Selling Associations (WFDSA) is pleased to present industry sales and sales force figures for 2019. As mentioned earlier, the first box is half price and for that, the customer has to fill up the details and then subscribe to the graze box. 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network marketing industry statistics worldwide 2021