… The subscription can be made for two weeks interval, a month or more and is subjected to alter. 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. From there, her journey to successful home income began. I am very (...). Affiliate marketing is a global industry worth well over $12 billion. (Google, 2019) Worldwide display advertising is expected to grow by 18.5 percent in 2021. The reason behind it is that the article is written purely based on facts and statistics, and have omitted any data that doesn’t have an accurate basement to stand for. In 2020 and beyond, the network marketing industry is slated to remain one of the highest-earning industries in the global economic diaspora. The betterment in technology has also made this approach seamless. In 2018, Amway has made 2.3% growth in terms of annual revenue compared to that of 2017 revenue. 11.5% of global sales share comes from household goods and durables. When have you planned to start yours? Influencer marketing is gaining more traction and investment than ever before. In times when there was no technology or an omnipresent mode of communication, entrepreneurs used to conduct marketing activities by spreading the word, asking help from others, appointing people as promoters, etc. In 2020, network marketing businesses from around the world are slated to bring in an estimated US$ 200 million every day. It had an upperhand in productive sales establishment, since the review about a particular product came from a known person or a peer group. 91% of GenZers are interested in flexible income earning opportunities. 10 Most Important Influencer Marketing Statistics for 2020. 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 … Southwestern publishing house is considered as the oldest direct selling company launched way back in 1855. Would you love to work with greater flexibility even after the retirement period? 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. Required fields are marked *, Thanks for some other informative blog. Let’s see some more interesting facts about the distributors and some motivational facts. Graze is a UK-headquartered food manufacturing/selling company who implemented a graceful marketing model. Growing diversity in product portfolios and increasing participation of self-employed marketing professionals have driven the industry’s growth to date. 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. 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. At some point in your life you’ve been pitched a multi-level marketing (MLM), direct selling, or network marketing business opportunity. 23% of the direct sales consumers belong to the age group 55 and above. Startups and entrepreneurs can make use of this opportunity to promote their business by focusing more on couple distributors. The usage of social media around the world is ever-increasing. *, 69% find supporting small businesses as an appealing attribute of direct selling. Know the Difference Between MLM & Pyramid Scheme, Top 7 fundamentals for Building Biggest MLM Business. In 2018 it was worth over $12 … This website uses browser cookies to improve user experience and analyse website traffic but never stores any sensitive information. Face-to-face meetings v/s Online meetings. The working or marketing style varies from one another in direct selling and normal sales. Next it is to integrate the vital part of your business into your plan. 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. The best thing about being a distributor for an MLM company is that they can work remotely with their own schedule. Solve this simple math problem and enter the result. Why Is Direct Selling Profit Is More Than Any Other Business? The MLM company to hit the maximum points with peak popularity is Avon. By continuing you consent to our privacy policy. To answer this concern at first place, she needs to know about how good her choice of product is doing in the market. A proper plan is necessary and that’s why they have something unique in nature. By 2019, one-third of the global population is expected to be email users. 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. 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. 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. China is the largest marketplace for … Alliance In Motion Global, a direct selling company founded in 2016 has made $0.238 billion in 2018 annual sales income. When the talent unites with flexible timings, good understanding, and other aspects, companies hire or employ couples as their distributors. Avon makes the third position among the top MLM companies list with a revenue of 4.76 billion USD in 2019. With that consistent increase in audience, email continues to be one of the most productive advertising mediums. Clara is now all set with the list of pals from her friends circle to initiate sales pitching !!. Her husband had the same doubt when they were having the discussion about it. The success rate of MLM companies has gone up to 80% from 25% in the past five years. Direct selling companies who have DSA membership follows the DSA code of ethics and offer 90% buyback on starter-kit distributors purchase. In 2017, record-breaking statistics have been witnessed in the industry with 116.7 million distributors. Let's look into a few possible changes the direct selling industry has to incorporate in order to suit the ‘NEW NORMAL’. PPC. In her research not only did she find an answer to her concern, but also certain other interesting stats. To sustain long for the present and future, a direct selling or MLM company must consider this fact as too many home-based business kicks start every year. This comes as no surprise, as up to 70% of internet traffic comes from mobile devices and 39% … This is significant because you get an idea about how much each company that endows a particular product earns and also, to see whether a company that sells a product similar to yours is performing well or not. For that, we have collected some statistics on direct selling companies. Clearly we see, people are into direct selling as distributors, and it is welcomed as a profession by the multitude. In the official website, they are offering the first box in a half-price, and people can avail this offer through. Start building your Network Marketing business with brand new Epixel MLM Software®. Different age groups have different levels of criteria that make them pick a product from different available brands. In India, about 5.1 million people are involved in the direct selling business which is nearly double that of the past 7 years, says global CEO, Qnet. This staggering number is supported by the increasing cut-offs and commissions paid to distributors and direct sellers. About 26% who contributed to the direct selling crowd were from the age group 35-44 in 2020. In today’s post, I want to write what I consider to be the status of the network marketing Industry as of 2021. Even so, the future of the network marketing industry looks promising. E.g. Primerica, founded in 1977 has employed 100,000 distributors with an average of $22,000 per distributor. This particular group has to study a lot and at the end of the day, they go for industrial expert opinions and consulting. Here are staggering network marketing statistics. In 2018-19, wellness products shared 33.2% of sales contribution globally. Retail sales of an average direct seller was $5176 in 2019. Many people are not able to believe that network marketing works. Network Marketing Doesn’t Work According to the Direct Selling Association, the direct sales industry, of which network marketing is a part of, grossed $35.4 billion in sales in the United States in … Eventually, they will make the company profitable and distributors from companies like Jeunesse, Amway, Herbalife, etc. Back in 1999, Avon appointed Andrea Jung as their first female CEO. The flexible operability of MLM businesses makes their entry into international trade a lot easy. China is the largest marketplace for MLM, surpassing the US in the recent past. Interesting Network Marketing Industry Facts. we can assure you (...), What a nice comment that makes a lot of sense. With its initial success in the West, especially in the US, network marketing soared to new heights as a top-grossing business vertical. Is that necessary? Launched into the world of yummy and healthy food manufacturing in 2009, the success rate of the “graze box” went up in no time. Products will be manufactured at a low cost, which will increase the scope of profits on their selling prices. That sales data breaks down into four regions: Asia and the … You must have JavaScript enabled to use this form. 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. Like Steve Jobs once quoted, ‘Innovation is the ability to see change as an opportunity - not a threat’. It reached 100 points in November 2015. The plan that attracts every health enthusiast with a graze box! China, US, and South Korea are the top markets. After the half-price boxes, the next boxes don’t come with any cut-offs. 3,500 salespeople work for Mary Kay in the USA. 5.1 million people found entrepreneurship opportunities in the direct selling industry. With their efforts and effective routines, they have been able to transform their lives as well as many others’ too. Direct selling in Canada shows a 1.5% growth for the past 5 years (2015-2020). However, when it comes to the network marketing model, the first box so referred is free of cost, isn’t that interesting? The turn is now yours. Some more interesting stats about direct selling companies. Companies can use the stats and customer suggestions to pull out the magnet and thereby acquire more customers. Well, different from what has been circulated among the general public about direct selling, it does help people to make good money and that’s why these companies were able to stand the tests of time. While the pitch varies from company to company, it basically … Currently, the MLM industry is valued at around 167 billion USD, which is estimated to reach around INR 645 billion by 2025. Amway has employed 3,000,000 distributors with average revenue of $2,800 per distributor. Wasn’t it prodigious to know that like any other industries in the world, direct selling too has companies that generate billions of dollars every year, and that the competition among them is pretty tight? 1 out 5 homes in the USA owns an Amway product. It has been reportedly forecasted that the network marketing industry can witness a year-on-year growth of over 20% in the coming years. It has always served as the easiest way to effectively communicate with them, and to build a bond of trust. Avon steals the trending deal out of every competitor's trend volume. Clothing and accessories contributes 6.1% to the annual direct sales. Based on the above stats, it is but obvious that as an industry, network marketing will have a great future. 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. *, U.S. consumers have positive perceptions towards direct selling and this has remained stable over the past 10 years. 44.2 million people find it interesting to consider direct selling as a part-time career option. Millions of brands are becoming actively ready to partner with network marketing companies. 118.4 million people worked as individual representatives in 2018, a growth rate of 1.6% when compared to 2017 stats. A few days later, in a casual talk, Clara’s husband, Michael, who works in the accounts department of a pharmaceutical company, told her about how the pandemic has increased their sales and how increasingly people are being concerned about their immunity and health. 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. The Google Display Network reaches 90 percent of internet users worldwide. *, 67% are inclined to the personalized service that direct sellers provide. Sales figures are expressed at Estimated Retail level and exclude Value Added Tax. The COVID-19 pandemic has had a severe impact on every business. When we considered the top 100 earners in the direct selling industry, we have found an interesting fact - Couples earn a high volume of money. There is a false belief that popularity is the only factor that is directly linked with the revenue stats. Now the plan is fixed. 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. Due to its success rate, almost every country welcomes the network marketing business model. Implies the opportunity direct selling provides. Network marketing global statistics show that the industry has massive potential, with the top three players being the USA, China, and Korea. Implies the ease with which direct selling can be initiated. 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. Graze boxes were sold using both offline and online strategies, they kept pushing the limits using different marketing channels. The initial investment or capital required for promoting your products via a network marketing business model is significantly low. Out of them, 53% of people made more than 5,000 U.S dollars. 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. With the influence of AI in consumer behavior analysis, the network marketing activities are also likely to be modernized in the near future. 15% of the digital media industry's revenue is accounted for from affiliate marketing. 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. Amway comes second in the list with 10.5% couples as distributors, and doTerra and Melaleuca with 9.8%. *, 46% of Americans would welcome contact from direct sellers regarding business opportunities on social media.*. dsa.org wfdsa.org ipsos.com businessforhome.org directsellingnews.com *DSA 2020 Consumer Attitudes and Entrepreneurship Study conducted by Ipsos. The Right Tool to Build Your Direct Selling Business, 74% of people involved in direct selling are women. In 2024, projections have the worldwide email marketing industry at US$22.16 billion from US$4.51 billion in 2016. Would You Like To See How A Startup Increases Sales Using A Direct Selling Strategy? Almost every home has at least one product or received a service from the network marketing industry. MLM Business Sales Statistics (Source) 2. Would you like to consider direct selling as an efficient part-time business opportunity? Several direct selling companies, who were emerging successful, were compelled to be shut down due to the growing misrepresentation of this business model as a pyramid scheme. Marketing is an important aspect which has to gain enough boost in the digital world. Online campaigns, co-branding, point of purchase (POP) marketing etc. In 2020, 7% among the overall direct sellers is aged 18-24. People who found it extremely difficult to cope up with the changes in the beginning, now handle it with ease. About 75% of the customer/direct sellers are women and 25% are men. Network marketing is one of the oldest and traditional businesses of selling products at multi-levels and forming an extensive network of people to promote the business. The final entity or the important step in this ladder is the ‘entrepreneurs’. They made a success story by their own effort, do you have similar innovative plans to make your marketing ideas work out well? 27.9% of direct selling companies prefer party plans, 7.5% prefer direct orders as their business models. Statistics, facts, data and insights from the Direct Selling Association regarding the direct selling industry. 36.6 million customers have bought products/services from the network marketing model. (Updated list - 2021), Top 100 MLM Companies for 2021! The more engaged the distributors are, the more they earn. Similar sorts of actions have to be done on the gender side too, a balance has to be kept among them which lacks at present. 15.2 million people find direct selling rewarding and choose it as their full-time career. The statistics showcase the excellent potential for individuals to earn through this business model. The world is moving to a new normal. So it is important to be informed about these possibilities to get your business through this hard time. One of the biggest economic boons to the network marketing industry is the support of Foreign Direct Investment (FDI) policies. Most of such talks happened during social gatherings and similar occasions. Hearing this, Clara, who was already in search of a product to kickstart her direct selling business, now knew what it should be. Be unique with a new plan that can revolutionize and make an impact in the world market! The New Normal in the Direct Selling Industry. The next one with a half-price and again a free-bee! 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. Graze as a network marketing model is entirely different from what they offer on their website. Except as footnoted, figures for sales and independent representatives are based on the entire industry. I am a rep in the industry and I love the industry… These companies started out with just a handful of promoters. The place else may (...), Great place to spend time especially now. The Asia-Pacific region is the fastest growing ecommerce region in the world. With its help, direct sellers are successfully hosting online parties and knowledge transfer meetings, to keep the community together strongly. At present, the value has gone down to 77. Herbalife operates in 94 countries through a network of approximately 4.5 million independent distributors and members. 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 … According to leading international trade reports, it has been estimated that the overall valuation of the network marketing industry had surpassed US$ 150 billion by the third quarter of 2019. Epixel MLM Software anchored 200+ network marketing companies to success through their business process automation in more than 88 countries. 3.9% of annual sales comes from financial services. Herbalife has been able to maintain their revenue through 2019. 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). Clara, being a homemaker, always had thought about supporting her family by earning an extra income while she keeps all her routine works together. Regional network marketing statistics 2017 worldwide industry sales were $189.6 billion—up 1.6% (adjusted to 2017 USD). Their motive and business model was perfect and offered stable growth. To clear up this concern, we have put together some stats and insights on the distributors in direct sales. Yes, it is but to an extent this article can help you to look around the whole system without many dilemmas. Network Marketing Company List. That's why it's critical that your business stays up to date with new developments in the industry — … 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. 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. Here are some of the key industry statistics associated with network marketing, reflecting its growth in the past year and predicting its rise in this year. ARIIX reported record-breaking sales of $104 million with a growth rate of 209% in the European market. The World Federation of Direct Selling Associations (WFDSA) is pleased to present industry sales and sales force figures for 2019. Overall, the network marketing industry will witness top-notch growth in the years to come. As the COVID-19 pandemic spread over the world, so did the worries about job security among the employees working in major industries. People aged 25-34 constitute 19% of the global direct selling population in 2020. The article narrated her journey from being unemployed to being her own boss and successfully generating handsome income. It's quite obvious from the above statistics that direct selling is a booming business and helps people earn a substantial amount of income. The WFDSA (World Federation of Direct Selling Associations) has reported recently that the direct selling industry’s sales volume was $189.6 billion in 2017, representing an increase of 1.6% … By the end of 2019, the numbers of distributor network raised to a whopping 119.9 million around the world. The numbers also suggest motivation among people who choose direct selling as a profession. Over 6,400 salespeople work for Avon product selling alone in the US regions. Right from the time direct selling flourished, most of the marketing part was done offline through word-of-mouth. 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. 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? Men and women, together as a couple have the ability to acquire leads of both genders. 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. 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. Foodstuff and beverages makes an annual contribution of 3.1%. Sales need to focus on the younger generation too as they are the future and having their trust in a product means a lot. 41% get motivated to become a direct seller by finding income potential and thereafter 50% continue in the industry. Thanks for the post. 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. Currently, there are several companies operating as established players in the network marketing industry. But in a situation like what we have now, marketing that happens in such a fashion has drastically reduced. In the past decade, however, the business of network marketing has faced considerable flak from the public and the regulatory institutions. MLM & Direct Sales Software for Health & Wellness, Top 100 Business Earners in Network Marketing World! 63.5% of direct selling companies use person to person selling methods and find it beneficial. I love this type (...), Thank you for these informative blogs! Social media is yet another tool to perform sales and reach. Aerus LLC, founded in 1924 has employed 5,000 distributors with average revenue of $60,000 per distributor. Let's see which all countries top the industry worldwide and how much money they pull in each year. I also noticed that some people were interested in knowing how many people became a millionaire; the network marketing millionaire statistics. Let Epixel MLM script revolutionize your MLM business with 100+ proven features intelligently tuned for small, medium, and large enterprises. 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. Impressive! It’s without a doubt one of the most popular online activities that users engage in. Not only the selling process is simplified, but also the sellers are able to get more insights about the customer behaviour and their preferences to a greater extent. This helps the industry attain sustainable growth. 8,493 new home-based businesses start every day in the USA. With over $1.935 trillion in ecommerce sales, China was the biggest ecommerce market in the world in 2019. Become a distributor, buy your pack, and refer more to get more. The average conversion rate in Google Ads across all industries is 3.75% on the search network and 0.77% on the display network. But from the data, it is clear that popularity isn’t the factor that makes people buy products. Come, let's dive in! USA becomes the global leader in retail sales with annual sales of $35.2 billion. … This particular point has been constant trouble for direct selling companies and those who attained customer retention have survived for long. A study can be made to find the cause and how to overrule it as a perfect solution which remains stable for the future. Germany and Japan hold 4th and 5th positions in the list with $17.4 billion and $15.6 billion respectively. Yes, email marketing still exists in 2018, and it’s a broadway to reach people around the world with just a click! In the U.S. direct selling prospects are diverse with 48% women, 35% millenials and 20% African Americans. Product consistency needs to maintain throughout their existence and customer fulfillment is a major battle to compact around. Let’s focus on network marketing profession and statistics. Throughout the world, there are approximately 50 million network marketing distributors. Fill up and remark your valuable comment. 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. (Source: IAB) Not only AM is growing fast, but it is already a massive global industry. SMEs are preferring the distribution of their goods through network marketing companies, primarily due to low investment and comparatively high returns. In such a context, if we evaluate the direct selling industry, things are pretty different. A total of $23.4 in revenue has been made in the Chinese market from retail sales in 2019.,which stands in the 2nd position. As a result, the profit margin increases, and companies can stay profitable with the MLM approach. Nobody knows when exactly would this crisis end and till then, the best thing we can do is to adapt and overcome. More efforts have to be put forward for younger, older generations to collectively call business as a complete world-class choice! 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%. Not to mention, face-to-face meeting is vital to establish a strong relationship with your distributors as well as customers. Clara already knew that when she approached her friends to introduce her business, they would undeniably check whether the product she offers is in high demand or not, so that they don't lose money hand over fist. There is no strict law that bans an MLM company from operating in any country in the world. 2. Again, the phrase “network marketing industry” gives you the wrong perspective when you’re looking at the profession. In late 2017 a study was performed by Mckinsey Global … Now, if you check out the below stats and consider the above innovative idea, one important thing that lays a foundation will be the years of experience and out-of-the-box thinking. In the United States, sales in the network marketing industry are in the $30 billion range. 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. The marketing world is dynamic and ever-changing — trends, technology, and tactics are never stagnant. Mr. David McConnell recruited Mrs. P.F.E Albee as his first woman sales representative, first in history. The entrepreneurs have to look into the system deeply from industrial history to the consumers’ reaction over the products. The Distributors. In traditional business as seen above, products are It’s a profession. Out of the top 100 lifetime earners, 45% of them are men, 17% are women, 34% are couples, and 4% are mixed-gender partnerships. And 52 % among them are degree holders or college network marketing industry statistics worldwide cost of 60,000! For health & wellness, top 100 MLM companies several companies operating established! And beyond, the numbers in terms of annual sales income have to look into unique! The new norms these informative blogs online sales also helps in expanding the customer base without any boundaries... The contribution of women of sales contribution globally ’ ve expanded their networks across multiple.... 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