100+ MLM Statistics You Need to Know in 2019!

100+ MLM Statistics You Need to Know in 2019!

Nikhil Ravindran
30 Aug, 2019

Multi-level Marketing aka MLM is one of the most popular business models in the product-based business. The industry is wide and globally accepted as the best revenue-driven marketing model. Here is an article from Epixel MLM Software that provides you all the necessary industry facts and figures or simply 100+ MLM statistics a direct seller must know of.

MLM Statistics
  • Global direct selling statistics
  • Revenue facts - U.S market
  • Direct sellers - how they view the industry?
  • The distributor statistics - Get motivated!
  • Top guns in the industry
  • Milestones & greatest achievements
  • Statistics in the U.S market
  • More fact, more statistics…

Global direct selling statistics (2017-18)

Industry facts every network marketer must know of!

Global Direct Selling Statistics

Direct selling industry has made global sales of about $189 billion in 2017.

In 2017, distributors have earned $76 billion as commission.

Distributors earned $208 million per day as commission during this time period.

Since 2009, network marketing companies generated about $1.5 trillion dollars in sales.

Distributors earned $600 billion as commissions since 2009.

In 2017, USA and China hold the highest revenue share in the direct selling industry with 34.9 and 34.3 billion USD respectively.

Retail Sales in 2017

A growth rate of 64% is witnessed in African/middle east areas between 2012-2017 time period From ($1.1 billion to $1.8 billion).

Asia holds the second position in terms of growth rate with 37%, from $62.1 billion to $85.33 billion.

South America makes the third spot with 27% growth, from $21.3 billion to 27.1 billion.

Revenue facts - U.S market (2018-19)

The influence of network marketing in the U.S market is clearly seen from the factsheet.

Revenue facts US in 2018

A grand total of $35.4 billion revenue has been made in the U.S market from retail sales in 2019.

1.3% growth is marked in the U.S market compared to previous year’s $34.9 billion.

6.2 million direct sellers sold products/services to customers as well as recruited or referred new members to the network.

83.87% of them prefer network marketing as a part-time job and the rest 16.13% considers as a full-time opportunity.

36.6 million customers have bought products/services from the network marketing model.

A contribution of about 26% comes from the 35-44 age group and 24% from the 45-54 age group.

Demographics

About 75% of the customer/direct sellers are women and just 25% are men.

85% of people in MLM are white/Caucasian, 8% are African American, 4% Asian, and 3% from others.

Race 2018

Based on the 2018 industry overview, products included in the wellness category stays top in terms of sales with 35.6%.

22.6% sales contribution comes from the service & related product categories.

Direct sellers - how they view the industry?

The motivation factors that attract to become a direct seller & continue in that profile for longer!

Direct Sellers View

64% of individuals find product discounts as a motivational factor to become a direct seller as well as to continue as a direct seller.

53% of people get motivated to become a direct seller via product advocates and 61% of people get motivated to continue as a direct seller.

59% feel motivated to become a direct seller and 61% to stay because of the flexible nature of the industry.

39% find connecting to other people (networking) as a motivational factor to become a direct seller and 47% to continue as a direct seller.

25% of individuals think direct selling as a recognition for their accomplishments by joining as a direct seller and 36% to continue as a direct seller.

48% joins as a direct seller with a goal for long-term supplemental income and 54% to continue as a direct seller.

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.

41% get motivated to become a direct seller by finding income potential and thereafter 50% continue in the industry.

19% of people become a direct seller with a carrier-driven approach and 29% get motivated to continue in this role.

Direct Sellers 1
Direct Sellers 2
Direct Sellers 3
Direct Sellers 4

The distributor statistics - Get motivated!

Must know distributor figures and statistics in direct selling industry.

Distributor Statistics

In 2017, record-breaking statistics have been witnessed in the industry with 116.7 million distributors.

1.75% of growth rate in terms of distributor numbers considering the 114 million from the previous year (2016).

A 3.7% Global Compound Annual sales Growth Rate (CAGR) over three years period from 2014-2017.

A distributor produce an average sales volume of $1600 every year i.e., a gross volume of $160,000 for every 100 distributors.

In regional-wise sales per distributor, European countries come up in the list with an average individual sales of 2,453 U.S dollars.

South America comes next in the list with $2,050 as distributor sales per year.

Average Distributors

208 million USD is paid to distributors as commissions in 2017.

Bonus check received by a distributor is more than $500 in a month.

A distributor who works on a full-time profile earns $55,000 per year.

In 2017, network marketing companies have paid $76 billion to the distributors.

In India, according to Ficci & KPMG, the distributors appointed by direct selling companies hit 1.8 crores in 2015.

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.

Top guns in the industry

Take a look at the top earners in the industry covering individuals and organization.

Top Guns in the Industry

Dexter Yager tops the earner list in MLM with an estimated lifetime amount of $460,000,000 and he belongs to Amway company.

Nancy Dornan holds the second position in the earner's list with an estimated lifetime amount of $125,000,000 who again belongs to Amway.

Top Earners

Amway makes an annual revenue of about 8.8 billion USD and holds the #1 position in top direct selling company list.

Southwestern publishing house is considered as the oldest direct selling company launched way back in 1855.

The first multi-level marketing plan was implemented back in 1945.

In 2018, Amway has made 2.3% growth in terms of annual revenue compared to that of 2017 revenue.

Milestones & greatest achievements

Get yourself informed about the achievements in the direct selling industry.

Milestones

Back in 1999, Avon appointed Andrea Jung as their first female CEO.

DSA, Direct Selling Association got a global presence in 1978 where 9 national DSA form the world federation.

The Southern part of the USA alone contributed about 37% of revenue sales in 2016.

In 2013, network marketing companies shared over $71 billion of global sales to their representatives.

According to a survey, in 2016, the direct selling industry has reached Rs. 12,620 crores in India.

In 2016, 31% of consumers find direct selling highly favorable in the USA.

In the USA, 50% of consumers have a neutral response to direct selling.

78% of people involved in direct selling have met the expectations.

As per WFDSA, In India 53% of entrepreneurs in the direct selling industry are women.

51 lakh people found entrepreneurship opportunities in the direct selling industry.

Most interesting direct selling statistics in U.S market

Get a close look at the influence of direct selling in the USA.

Direct Selling Statistics in US

More than 6,400 salespeople work for Avon product selling alone in the US regions.

8,493 new home-based business starts every day in the USA.

3,500 salespeople work for Mary Kay in the USA.

At present, MLM works with a full flourish in every 50 states of USA.

One in seven U.S households are involved in direct selling.

There are more people involved in direct selling than the population is U.S states except for states like California, Texas, Florida, and New York.

82% of people find the direct industry excellent for making money and network.

78% of the people who are already involved in the industry recommend it to others.

Direct selling is considered as a business model with low risk.

90% of the money is provided as a refund if decides to quit from direct selling.

58% of direct selling makes household income greater than $50,000.

99% of direct sellers are high school graduate and 52% among them are degree holders or college graduates.

68% of American’s don’t prefer online shopping and hence an opportunity for direct sellers.

74% of people love to work with greater flexibility even after the retirement period.

More fact, more statistics…

Find more interesting MLM statistics in the next part.

More Facts More Statistics

Top 20% income earners in the network marketing industry are woman and couples.

According to the sources, Network marketing will generate 1.5 trillion dollar sales in the next 5 years.

$400 billion to be earned as gross distributor commissions in the next 5 years.

Somewhere in the world, a new home-based business kick starts every 10 seconds.

600,000 new people join in the network marketing industry every year.

84% of people recommend or prefer to work remotely.

63% of participants join network marketing to make money by selling products to customers.

25% achieves the desired profit they planned for while joining the business.

Out of them, 53% of people made more than 5,000 U.S dollars.

2/3rd of MLM participants never re-join the same MLM company again.

34% of the distributors are recruited by means of a friend.

12% of people have joined the MLM business by family members.

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.

A new direct selling company can be started with just less than 100 dollars.

According to Inc.com, the median income of a distributor is about $2,400 per year.

More than 60 million sales consultants work in the MLM industry.

44% of small business survives for at least 4 years and make a fair profit.

31% of small business companies survive for at least 7 years.

39% of small business companies are running profitably in long terms and provides great motivation for new startups.

Only 64% of small business get a ‘failure tag’ in ten years.

There is an 80% chance of success rate when one starts a product business using direct selling model instead of traditional marketing business models.

A minimum of 38 million people work as part-time in the industry by sharpening the individual skills.

Consistent growth has been seen in network marketing for the past 7-8 years.

The network marketing industry is considered as $100 billion industry.

63.5% of direct selling companies use person to person selling method and find it beneficial.

27.9% of direct selling companies prefer party plans, 7.5% prefer direct orders as their business models.

As per consumer attitudes summary, more than 50% likely to purchase from a distributor the immediate next year.

Consumers find social media very much useful and find good support for direct selling business.

Millennial generation finds more attracted towards direct selling industry both as sellers and consumers.

Hispanics provide higher support with 38% rather than those from the non-Hispanics which is 29%.

Hispanics non hispanics

One out of five direct selling business earns 6 figure annual sales.

References

  • "Industry Fact Sheets - Direct Selling Association." https://www.dsa.org/statistics-insights/factsheets.
  • “New Survey Reveals 73 Percent of People who Participate in Network ...." https://www.prnewswire.com/news-releases/new-survey-reveals-73-percent-of-people-who-participate-in-network-marketing-opportunities-lose-money-or-make-no-money-300727716.html./
  • "2018 Industry Overview - Direct Selling Association." https://www.dsa.org/docs/default-source/action-alerts/2018industryoverview-06032019.pdf?sfvrsn=9709c0a5_0.
  • "MLM Success Rates and What It Takes to Succeed." https://www.thebalancesmb.com/the-likelihood-of-mlm-success-1794500.
  • "Direct Selling Lifetime Top Earners Ranks ... - Business For Home." https://www.businessforhome.org/direct-selling-lifetime-top-earners/.
  • "11 Amazing Network Marketing Industry Statistics - BrandonGaille.com." https://brandongaille.com/network-marketing-industry-statistics/.
  • "21 Direct Sales Industry Statistics and Trends - BrandonGaille.com." https://brandongaille.com/19-direct-sales-industry-statistics-and-trends/.
  • "Direct selling companies in India set to generate nearly 2 crore jobs by ...." https://www.timesnownews.com/business-economy/companies/article/direct-selling-companies-in-india-set-to-generate-nearly-2-crore-jobs-by/278175.
  • "Consumer attitudes toward direct selling in the United ... - Statista." https://www.statista.com/statistics/917402/consumer-attitudes-towards-direct-selling-us/.
  • "2017 Direct Selling Consumer Attitudes Survey." https://www.dsa.org/docs/default-source/research/dsa-2017consumerattitudesinfographic.pdf?sfvrsn=2.
  • "An Accessible Path to Entrepreneurship - Direct Selling Association." https://www.dsa.org/docs/default-source/advocacy/dsa-2018-public-affairs-fact-sheet.pdf?sfvrsn=f6fdc1a5_2.
LEAVE YOUR COMMENT

Fill up and remark your valuable comment.