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. 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. 3.9% of annual sales comes from financial services. 25% among the direct sellers were from the age group 45-54. 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. For that, we have collected some statistics on direct selling companies. Recent joinees in direct selling alone amounts to 60.5 million. Consumers are those end-users who ultimately use the products and remark their opinion at least in mind. In 2020, 7% among the overall direct sellers is aged 18-24. The average conversion rate in Google Ads across all industries is 3.75% on the search network and 0.77% on the display network. Over 6,400 salespeople work for Avon product selling alone in the US regions. *, 88% of Millennials are interested in entrepreneurial opportunities. Primerica, founded in 1977 has employed 100,000 distributors with an average of $22,000 per distributor. Worldwide … The place else may (...), Great place to spend time especially now. The success of a direct selling company relies on its distributors and it’s a plain fact that they make a major contribution towards it. Best regards, The article narrated her journey from being unemployed to being her own boss and successfully generating handsome income. The economically-progressive country is spearheading the global marketplace for network marketing with its compliant trade policies and customer protection laws. Fill up and remark your valuable comment. Amway has reported a 5% revenue decline for 2019. Since it has become difficult to carry out the same selling process now, more and more direct sellers are moving to the online platforms to set up their virtual stores. To give more insights to her partners, and to help them in their journey along with her towards developing a successful business, she was also ready with some important data. I am a rep in the industry and I love the industry… Even though Amway leads the top 100 MLM companies list in terms of sales revenue for the year 2019-2020, it is not the same in terms of popularity. As mentioned earlier, the first box is half price and for that, the customer has to fill up the details and then subscribe to the graze box. Now, they’ve expanded their networks across multiple countries. Let’s see some more interesting facts about the distributors and some motivational facts. This case study tells how network marketing can be properly utilized with a unique idea and marketing plan. Network Marketing Company List. Case studies in network marketing prove to be an excellent way to improve your knowledge and skills in this area of expertise. Network marketing global statistics show that the industry has massive potential, with the top three players being the USA, China, and Korea. In 2020, network marketing businesses from around the world are slated to bring in an estimated US$ 200 million every day. Right from the time direct selling flourished, most of the marketing part was done offline through word-of-mouth. … Social Media Marketing 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%. 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. 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. In 2016, 31% of consumers find direct selling highly favorable in the USA. As the COVID-19 pandemic spread over the world, so did the worries about job security among the employees working in major industries. As a result, the profit margin increases, and companies can stay profitable with the MLM approach. It reached 100 points in November 2015. The flexible operability of MLM businesses makes their entry into international trade a lot easy. Clara has started her journey to top the list with her masterful network of distributors. Avon makes the third position among the top MLM companies list with a revenue of 4.76 billion USD in 2019. Referral marketing goes side-by-side linked with network marketing/direct marketing. The average cost-per-click in Google Ads across all industries is $2.69 on the search network … It’s without a doubt one of the most popular online activities that users engage in. *, 69% find supporting small businesses as an appealing attribute of direct selling. 23% of the organizations in the network marketing industry focus on health and wellness… 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 … Would you love to work with greater flexibility even after the retirement period? People aged 25-34 constitute 19% of the global direct selling population in 2020. Graze is a UK-headquartered food manufacturing/selling company who implemented a graceful marketing model. In 2020 and beyond, the network marketing industry is slated to remain one of the highest-earning industries in the global economic diaspora. This particular point has been constant trouble for direct selling companies and those who attained customer retention have survived for long. The following statistics showcase the current as well as the forecasted growth of the network marketing industry in the world: The method of promoting and selling products by communicating with people has been around for ages. Here are those:-. In 2019, wellness products marked 45% sales and cosmetics 28% sales in Australia alone. The final entity or the important step in this ladder is the ‘entrepreneurs’. Let's see which all countries top the industry worldwide and how much money they pull in each year. 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. 63.5% of direct selling companies use person to person selling methods and find it beneficial. That sales data breaks down into four regions: Asia and the … However, when it comes to the network marketing model, the first box so referred is free of cost, isn’t that interesting? The three countries bring in close to $90 billion in revenue. 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. Instead, sellers are now more focused on branding their company online by putting their time and effort into digital marketing. Avon stays top in terms of web search trends among the top 5 MLM companies with an average point of 80, Herbalife is second with 22 points, Amway with 19 points, Vorwerk with 4 points, and finally Infinitus with <1 point. ARIIX reported record-breaking sales of $104 million with a growth rate of 209% in the European market. South Korea is also among the top countries to witness stimulating growth in the direct selling industry. 11.5% of global sales share comes from household goods and durables. The Google Display Network reaches 90 percent of internet users worldwide. Amway has employed 3,000,000 distributors with average revenue of $2,800 per distributor. With its initial success in the West, especially in the US, network marketing soared to new heights as a top-grossing business vertical. (Source: IAB) Not only AM is growing fast, but it is already a massive global industry. are some of the strategies commonly deployed. Your email address will not be published. *, Direct selling requires only a minimal start-up cost of $82.50 when compared to other industries.*. Interesting Network Marketing Industry Facts. Like Steve Jobs once quoted, ‘Innovation is the ability to see change as an opportunity - not a threat’. Face-to-face meetings v/s Online meetings. We can help you with that part and make you clear with more facts. There is no strict law that bans an MLM company from operating in any country in the world. 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. 10 Most Important Influencer Marketing Statistics for 2020. Eventually, they will make the company profitable and distributors from companies like Jeunesse, Amway, Herbalife, etc. Is that necessary? Clara is now all set with the list of pals from her friends circle to initiate sales pitching !!. The following statistics and insights show the entrepreneurship opportunities offered in the direct sales industry. But in a situation like what we have now, marketing that happens in such a fashion has drastically reduced. Now the plan is fixed. That's why it's critical that your business stays up to date with new developments in the industry — … According to the surveys, 25% of participants made money through network marketing. … The marketing world is dynamic and ever-changing — trends, technology, and tactics are never stagnant. 3 Statistics That Show How Network Marketing Creates a Better Way of Life. This particular group has to study a lot and at the end of the day, they go for industrial expert opinions and consulting. However,like any other trade, things have changed in order to adapt to the new norms. Start building your Network Marketing business with brand new Epixel MLM Software®. agree to this point with ample earners as couples. 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. A simple strategy with the best marketing scheme proposes an attractive option for worldwide customers. The successful implementation of work from home scheme has made companies rethink the need for an expensive office space, since most of the companies could get their work done in WFH method with a great reduction in running costs. They do find this method very useful. Even though 74% of people involved in direct selling belong to women, there is something missing from their side. (Updated list - 2021), Top 100 MLM Companies for 2021! China is the largest marketplace for … MONAT Wellness reports a record-high sales of $10 million in the first 24 hours. The usage of social media around the world is ever-increasing. 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. Amway comes second in the list with 10.5% couples as distributors, and doTerra and Melaleuca with 9.8%. Throughout the world, there are approximately 50 million network marketing distributors. *, 67% are inclined to the personalized service that direct sellers provide. Influencer marketing is gaining more traction and investment than ever before. It has been reportedly forecasted that the network marketing industry can witness a year-on-year growth of over 20% in the coming years. 25% achieves the desired profit they planned for while joining the business. The best thing about being a distributor for an MLM company is that they can work remotely with their own schedule. In her research not only did she find an answer to her concern, but also certain other interesting stats. E.g. Germany and Japan hold 4th and 5th positions in the list with $17.4 billion and $15.6 billion respectively. However, there are more things you have learned before we help you come up with a solution. Overall, the network marketing industry will witness top-notch growth in the years to come. we can assure you (...), What a nice comment that makes a lot of sense. In the official website, they are offering the first box in a half-price, and people can avail this offer through. This comes as no surprise, as up to 70% of internet traffic comes from mobile devices and 39% … It has always served as the easiest way to effectively communicate with them, and to build a bond of trust. Social media statistics from 2019 show that there are 3.5 billion social media users worldwide… Online sales also helps in expanding the customer base without any geographical boundaries, which offers a great opportunity for business expansion as well. The time at which she entered the industry and her choice of product elevated professional growth. 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. On searching, she found out that 74% of people involved in direct selling are women, which reinforced her decision to venture into direct selling. After the half-price boxes, the next boxes don’t come with any cut-offs. (eMarketer) Advertisers increased … The Right Tool to Build Your Direct Selling Business, 74% of people involved in direct selling are women. Millions of brands are becoming actively ready to partner with network marketing companies. A proper plan is necessary and that’s why they have something unique in nature. The success of a business is once all such age groups together choose your brand. You should know three things upfront. With the success stories piling up, more companies are becoming involved with the network marketing business model. MLM & Direct Sales Software for Health & Wellness, Top 100 Business Earners in Network Marketing World! Next it is to integrate the vital part of your business into your plan. In such a state of affairs, people like Clara are making a difference by taking enthusiastic initiatives to tackle the crisis and also to have a long-lasting business. 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. 15.2 million people find direct selling rewarding and choose it as their full-time career. Proper use of every marketing channel, consistently engaging with the customers is the key! 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. 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. The New Normal in the Direct Selling Industry. It is one of the most trusted ways of generating customer base. You must have JavaScript enabled to use this form. There is a false belief that popularity is the only factor that is directly linked with the revenue stats. 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. 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. But from the data, it is clear that popularity isn’t the factor that makes people buy products. The top MLM … Foodstuff and beverages makes an annual contribution of 3.1%. If the senior citizens still argue over your product in the later period of their life in supermarkets or similar brick and mortar stores then you can define a product as the best and evergreen product with never-ending trust. Korea maintains the third position among the retail sales list with $17.6 billion. Global Statistics. Launched into the world of yummy and healthy food manufacturing in 2009, the success rate of the “graze box” went up in no time. MLM Business Sales Statistics (Source) 2. SMEs are preferring the distribution of their goods through network marketing companies, primarily due to low investment and comparatively high returns. Among the list, 13.2% of couples in the list belong to Herbalife and Jeunesse. Direct selling in Canada shows a 1.5% growth for the past 5 years (2015-2020). 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. Let's look into a few possible changes the direct selling industry has to incorporate in order to suit the ‘NEW NORMAL’. 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. Boswell Valenzuela, Your email address will not be published. Implies the opportunity direct selling provides. Statistics, facts, data and insights from the Direct Selling Association regarding the direct selling industry. Epixel MLM Software anchored 200+ network marketing companies to success through their business process automation in more than 88 countries. Required fields are marked *, Thanks for some other informative blog. The industry proves worth enough, the numbers in terms of distributors as well as the revenue suggests it strongly. Here are staggering network marketing statistics. Majority still have not been able to recover it by even 50% of the pre-covid times. Know the Difference Between MLM & Pyramid Scheme, Top 7 fundamentals for Building Biggest MLM Business. With over $1.935 trillion in ecommerce sales, China was the biggest ecommerce market in the world in 2019. Regional network marketing statistics 2017 worldwide industry sales were $189.6 billion—up 1.6% (adjusted to 2017 USD). Graze as a network marketing model is entirely different from what they offer on their website. The entrepreneurs have to look into the system deeply from industrial history to the consumers’ reaction over the products. 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. *, 46% of Americans would welcome contact from direct sellers regarding business opportunities on social media.*. Many people are not able to believe that network marketing works. At present, the value has gone down to 77. 50 new direct selling companies entered the 100 million club in 2019. 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. 2. The article connected with her instantly, and she further searched about direct selling and its various possibilities. The best time is NOW!!. These companies started out with just a handful of promoters. It had an upperhand in productive sales establishment, since the review about a particular product came from a known person or a peer group. (‘19). Just like the food processing companies use the awareness of human beings' cravings and tailor the tastes of their food products to ignite the addiction or their taste interests. 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. 1. Become a distributor, buy your pack, and refer more to get more. In late 2017 a study was performed by Mckinsey Global … Sales need to focus on the younger generation too as they are the future and having their trust in a product means a lot. Graze boxes were sold using both offline and online strategies, they kept pushing the limits using different marketing channels. 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. The COVID-19 pandemic has had a severe impact on every business. Retail sales of an average direct seller was $5176 in 2019. The MLM company to hit the maximum points with peak popularity is Avon. Currently, there are several companies operating as established players in the network marketing industry. *, 79% of Americans consider direct selling as an attractive option for entrepreneurial opportunities. for 1+3, enter 4. Clara is now not only a nice friend in her circle, but also someone who helped them to earn and live better. In 2024, projections have the worldwide email marketing industry at US$22.16 billion from US$4.51 billion in 2016. The most important ingredient in the industry that connects every group is the product. When the talent unites with flexible timings, good understanding, and other aspects, companies hire or employ couples as their distributors. 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. Currently, the MLM industry is valued at around 167 billion USD, which is estimated to reach around INR 645 billion by 2025. Affiliate marketing is a global industry worth well over $12 billion. 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. Let Epixel MLM script revolutionize your MLM business with 100+ proven features intelligently tuned for small, medium, and large enterprises. 91% of GenZers are interested in flexible income earning opportunities. In the United States, sales in the network marketing industry are in the $30 billion range. 3,500 salespeople work for Mary Kay in the USA. 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. More than 60 million sales consultants work in the MLM industry. In today’s post, I want to write what I consider to be the status of the network marketing Industry as of 2021. Why Is Direct Selling Profit Is More Than Any Other Business? They renamed later into Southwestern advantage and the revenue they generated in 2019 is around $138M. 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. 8,493 new home-based businesses start every day in the USA. 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. Stop waiting for the right time. 5.1 million people found entrepreneurship opportunities in the direct selling industry. Yes, it is but to an extent this article can help you to look around the whole system without many dilemmas. 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. Nobody knows when exactly would this crisis end and till then, the best thing we can do is to adapt and overcome. Network marketingis basically just a different way of selling products to the end user. Avon stays ahead in the trending status. 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. Top 10 Must-Know Network Marketing Industry Statistics of 2020! Cosmetics and personal care products contribute 31.5% to annual sales (2019). This staggering number is supported by the increasing cut-offs and commissions paid to distributors and direct sellers. Like Clara, Many people around the globe have successfully emerged as a direct selling entrepreneur. By working full-time, an individual is earning more in network marketing than in other marketing vertical. Among the products, there exist many categories and direct selling is the best available business model to reach them to the end-users, i.e the consumers and then the customer-distributor conversion that helps product selling companies to make products distributorship revenue. Alliance In Motion Global, a direct selling company founded in 2016 has made $0.238 billion in 2018 annual sales income. 27.9% of direct selling companies prefer party plans, 7.5% prefer direct orders as their business models. Fast forwarding, Clara’s career transformation from being a mere homemaker to a successful direct selling entrepreneur was smooth and swift. Again, the phrase “network marketing industry” gives you the wrong perspective when you’re looking at the profession. It's quite obvious from the above statistics that direct selling is a booming business and helps people earn a substantial amount of income. Growing diversity in product portfolios and increasing participation of self-employed marketing professionals have driven the industry’s growth to date. However, proper training tools and features and marketing strategies need to make plans to improve the contribution of women. 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. More efforts have to be put forward for younger, older generations to collectively call business as a complete world-class choice! With a double-digit CAGR, the network marketing industry is expected to surpass a half-a-trillion valuation in five years from now. About 75% of the customer/direct sellers are women and 25% are men. 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? 99% of direct sellers are high school graduates, and 52% among them are degree holders or college graduates. Implies the ease with which direct selling can be initiated. The initial investment or capital required for promoting your products via a network marketing business model is significantly low. Social media is yet another tool to perform sales and reach. There are thousands of direct selling enterprises that are striving hard to reach those exceptional sales figures. People also find the industry a good choice after the retirement period. So it is important to be informed about these possibilities to get your business through this hard time. The more engaged the distributors are, the more they earn. About 10% of distributors earn over $100 a week through their marketing efforts and skills. The world is moving to a new normal. Today, when we look at the facts and figures put forth by leading MLM companies, it surprises us to see the kind of revenue that network marketing businesses are making. Impressive! In the U.S. direct selling prospects are diverse with 48% women, 35% millenials and 20% African Americans. 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. (Google, 2019) Worldwide display advertising is expected to grow by 18.5 percent in 2021. By 2019, one-third of the global population is expected to be email users. One of the biggest economic boons to the network marketing industry is the support of Foreign Direct Investment (FDI) policies. *, 77% of Americans are interested in flexible, entrepreneurial/income earning opportunities. Based on the above stats, it is but obvious that as an industry, network marketing will have a great future. In 2018-19, wellness products shared 33.2% of sales contribution globally. 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. The success rate of MLM companies has gone up to 80% from 25% in the past five years. There are several countries that welcome foreign investors in boosting the growth of MLM companies. In 2019-20, wellness products shared 35.6% of sales contribution globally. Around 5,000,000 distributors work for Avon with average revenue of $2,080 per distributor. With its help, direct sellers are successfully hosting online parties and knowledge transfer meetings, to keep the community together strongly. The strategy is only provided in network marketing and not for a direct customer who enters the website and makes a regular order. Product elevated professional growth selling enterprises that are striving hard to reach those exceptional figures. 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That can revolutionize and make you clear with more facts a business is once all such age have... Sales of $ 10 million in the industry a good choice after the retirement period these possibilities to get business... Party plans, 7.5 % prefer direct orders as their distributors at the end user integrate... Of 2017 revenue vital part of your business into your plan past 10 years … Google Chrome recently that. People love healthy food linked with the customers is the key at US $ 4.51 billion in revenue from. Avon makes the third position among the employees working in major industries..! July 13, 2018... network marketing industry are in the USA owns an product! Off from the above statistics that Show how network marketing industry will top-notch! Prove to be email users useful information into this write up leader in retail sales list with a path... Again, the network marketing business with brand new Epixel MLM Software® list to... 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network marketing industry statistics worldwide 2021