Multi-level Marketing (MLM) Statistics


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Multi-Level Marketing (Mlm) Statistics 2023: Facts about Multi-Level Marketing (Mlm) outlines the context of what’s happening in the tech world.

LLCBuddy editorial team did hours of research, collected all important statistics on Multi-Level Marketing (Mlm), and shared those on this page. Our editorial team proofread these to make the data as accurate as possible. We believe you don’t need to check any other resources on the web for the same. You should get everything here only 🙂

Are you planning to form an LLC? Maybe for educational purposes, business research, or personal curiosity, whatever the reason is – it’s always a good idea to gather more information about tech topics like this.

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Top Multi-Level Marketing (Mlm) Statistics 2023

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Multi-Level Marketing (Mlm) “Latest” Statistics

  • According to statistics from the Bureau of Labor statistics, 30% of all small firms survive for at least 10 years.[1]
  • According to the FTC analysis by Jon Taylor, 95% of MLM members leave the industry after 10 years.[1]
  • According to a report that studied the business models of 350 MLM companies in the United States, published on the Federal Trade Commission’s website, at least 99% of people who join MLM companies lose money.[2]
  • Recruiting MLM firms have an estimated 99.9% loss rate, which means that after deducting all costs, including purchases from the company, 99.9% of participants still lose money.[2]
  • By 2009, MLM was being used by 94.2% of DSA members, accounting for 99.6% of sellers, and 97.1% of sales.[2]
  • Only 25% of the direct selling association’s members adopted the MLM business model in 1990, according to the organization’s report.[2]
  • According to Direct Selling Association (2017), 30% of direct selling members are under the age of 35.[3]
  • Herbalife said that 466,926 of US members did not get any profits, indicating that the sample that was used is likely representative of the vast majority of Herbalife members in the country.[3]
  • According to survey results from the AARP, the average participation in MLMs across the US is 63% non-Hispanic White, 13% Black, and 17% Hispanic, thus roughly reflecting the distribution of groups across the country.[3]
  • According to the DSA, 74% of active in direct selling were female, and 22% of them were Hispanic, compared to 18% proportion of the US population.[3]
  • According to Herbalife’s own statistics, 39% of product sales are made to clients outside the company’s network.[3]
  • Herbalife’s materials state that a distributor may anticipate a $9 profit for each product sold.[4]
  • 72% of AdvoCare’s distributors made no money in 2016, and 18% made $250 or less that year.[4]
  • Even while MLM may be seductive, individuals often hook on to the reality that they are paying out for little reward, therefore up to 50% of participants leave before the end of their first year.[4]
  • Ninety of the more than 20 million Americans who now or have previously engaged in multilevel marketing organizations said they did so in order to earn money.[4]
  • The average monthly payout for the 27.5% of earners was only $53, giving them a yearly income before costs of just $655.[4]
  • MLM enterprises would have a fairly restricted multi level structure, with a 10% marketing cost having one or two levels.[4]
  • According to MLM Rodan + Fields, 67.1% of sellers had an annual median income of $227 in 2019.[4]
  • According to a DSA report, during the 2007–2009 Great Recession, the number of MLM sellers began rising and went from 15.1 million in 2008 to 18.2 million in 2014.[4]
  • The top MLM firms sold globally in 2019, with direct retail sales reaching more than $35.2 billion, according to the Direct Selling Association.[4]
  • According to Truth in Advertising, an independent monitoring organization, the FTC has brought complaints against 30 MLMs in the previous 41 years, claiming that they are pyramid schemes.[4]
  • In the US, the multibillion dollar multilevel marketing sector accounts for around 1% of all retail sales.[4]
  • A friend or family member recruited one third of MLM participants, while 12% were family members.[4]
  • 99% of individuals who sell items via a multi level marketing firm experience financial loss.[4]
  • Out of 21,000 independent consultants in the UK, Arbonne only showed income for 12% of them.[4]
  • According to surveys, 25% of respondents earned money via multilevel marketing.[4]
  • According to the Small Business Association, 31% and 44%, respectively, of small firms last at least seven years.[4]
  • 90% of distributors were women who worked part time in MLM.[4]
  • In India, women’s participation in the labor market as a whole was 23.3% in 2018, while it was over 53% for network marketing.[4]
  • According to a Consumer Awareness Institute Survey from 2017, 99% of MLM salespeople really lose money.[4]
  • Most 65% of MLM participants said that if they knew then what they know now, they would not re join the same MLM organization.[5]
  • Despite the fact that MLMs may be a source of additional income, the majority (73%) of those who joined said that their involvement resulted in either a loss of money (47%).[5]
  • Household goods and durables account for 16% of worldwide network marketing revenues, an increase of 10% over the previous year.[6]
  • Product discounts are a motivating element for 64% of people to pursue a profession in direct selling.[6]
  • Supporting small companies is seen a desirable feature of direct selling by 69% of respondents.[6]
  • The opportunity for flexible entrepreneurial income generation interests 77% of Americans.[6]
  • There are 5.5 million distributors in Africa and the Middle East, a 28.1% decline from the prior year.[6]
  • Americas reported the highest growth rate among the regions (5.8%) with 67.9 billion USD in retail sales.[6]
  • The reasons for participating in direct selling were also affected by brand (54%), convenience (47%), and value (53%).[6]
  • In 2021, Canada had 1.37 million independent sales consultants, a minor decline of 1.1% from the previous year.[6]
  • Asia/Pacific region shares 41.9% of the global sales, followed by Americas(36.5%), Europe(20.6%), Africa/Middle East (1%).[6]
  • The direct sales workforce in Europe has the greatest proportion of female employees at 83.7%.[6]
  • Even though women make up 69.9% of direct sellers, something is still lacking from their perspective.[6]
  • Worldwide sales force spanning geographies in the Asia Pacific area, 74.6 million individuals entered the direct selling sector, a 2.6% increase over the previous year.[6]
  • Compared with a decade ago, there is an increase of 40% in the retail sales of USA.[6]
  • Wellness items lead the list of retail sales by product categories in the USA for 2021 with 36% of the total.[6]
  • The markets in Africa and the Middle East recorded $1.7 billion with a 10% decline in retail sales.[6]
  • 32% of buyers said that safeguarding their family’s health and welfare was the determining factor in their purchase decisions.[6]
  • According to Rusin, even if a distributor were to sell 70% of their inventory in a given month, they would still not be able to reach the financial independence promised by many MLMs.[7]
  • The 70% rule, which stipulates that at least 70% of all commodities sold must be acquired by non distributors, must be followed for an MLM to be compliant, that is, lawful and not a pyramid scheme.[7]
  • 52% of MLM participants claim that the company’s claims of generating a profit are either “not very accurate” or “not true at all”.[8]
  • 43% of respondents said that it was either somewhat accurate or extremely accurate.[8]
  • Only 25% of member organizations used MLM in 1990, illustrating how deeply ingrained MLM has grown in the direct selling industry.[8]
  • Wellness sales in 2019 were 33.2% of total sales, while cosmetics and personal care sales were 31.2% of total sales.[8]
  • Only around 20% of small enterprises survive through their first year, and only about a third do so for more than ten years.[8]
  • According to one AARP research, 52% of MLM participants said a company’s claim that direct selling may lead to financial success was either “not accurate enough” or “not correct at all”.[8]
  • The prevalence of MLM may be one of the facts about it that most people find shocking. Nearly 8% of Americans have engaged in some kind of multilevel marketing.[8]
  • Less than 2% of Americans, which suggests that as newer generations enter the workforce, participation rates are falling.[8]
  • The AARP discovered that over 50% of participants leave after one year and over 90% leave within ten years.[8]
  • The FTC claims that 99% of MLM participants experience financial loss, a more recent AARP research reveals that the figures aren’t nearly as alarming.[8]
  • According to the AARP foundation, about one in thirteen adults (18+) have participated in at least one in multi-level marketing (MLM), sometimes referred to as direct sales or network marketing, organization during their lifetime.[9]
  • Approximately 20% of small firms fail during their first year, 50% do so for five years or more, and about a third survive through ten years, according to the US Small Business Administration.[9]
  • By year 10, only those at the very top had remained, which meant that at least 95% of representatives had left.[9]
  • According to more recent AARP study, 66% of the MLM participants invested less than $1,000 for inventory, training, and materials while they were with an MLM organization, 24% spent between $1,000 and $4,999, and 11% paid $5,000 or more, while 23% did not remember how much they invested.[9]
  • Only 40% of MLM members, according to the AARP Foundation, got a copy of the company’s revenue disclosure statement.[9]
  • Only around 25% of people questioned by the AARP Foundation reported making money with MLM.[9]
  • 44% of participants in the AARP foundations research left their MLM jobs in less than a year.[9]
  • 65% of distributors get commissions for recruiting new business.[10]
  • According to a 2018 poll, 77% of US adults aged 18 and older have engaged in at least one MLM organization in their lifetime.[10]
  • A distributor at any level normally earns 5% commission on all distributors in his or her group who sell at lower levels.[11]

Also Read

How Useful is Multi Level Marketing Mlm

Those in favor of MLM often highlight the low barriers to entry and the potential for individuals to earn a significant income through selling products and recruiting others to do the same. Proponents argue that MLM allows for flexibility in work hours and the opportunity to work from home, making it an attractive option for individuals seeking entrepreneurial ventures. Additionally, the community aspect of MLM can provide valuable support and motivation for individuals looking to grow their own business.

However, critics of MLM point to the inherently hierarchical nature of the business model, where only a small percentage of participants at the top of the pyramid make substantial profits while the majority of individuals at the bottom struggle to make ends meet. They argue that MLM relies on continuously recruiting new members to sustain the structure, leading to ethical concerns about exploiting relationships for financial gain. Furthermore, the emphasis on recruitment can overshadow the actual sale of products, leading to a focus on building a network rather than providing value to consumers.

The success or failure of an individual in an MLM company often depends on factors such as personal motivation, social network size, and timing in the market. While some people may thrive in an MLM environment, others may face significant financial losses and emotional distress. It is crucial for individuals considering joining an MLM company to carefully research the company’s products, compensation plan, and reputation to make an informed decision about their involvement.

In conclusion, MLM can provide opportunities for individuals to achieve financial success and personal growth, but it also comes with inherent risks and challenges that deserve consideration. Ultimately, the usefulness of MLM is subjective and dependent on the individual’s goals, values, and circumstances. It is essential for individuals to approach MLM with caution, skepticism, and a critical mindset to navigate the complex landscape of network marketing effectively.

Reference


  1. due – https://due.com/blog/3-mind-blowing-statistics-about-mlms/
  2. wikipedia – https://en.wikipedia.org/wiki/Multi-level_marketing
  3. wiley – https://onlinelibrary.wiley.com/doi/full/10.1002/cfp2.1137
  4. webinarcare – https://webinarcare.com/best-multi-level-marketing-software/multi-level-marketing-statistics/
  5. aarp – https://www.aarp.org/aarp-foundation/our-work/income/multilevel-marketing/
  6. epixelmlmsoftware – https://www.epixelmlmsoftware.com/blog/100-mlm-statistics-2019
  7. forbes – https://www.forbes.com/advisor/investing/multi-level-marketing-mlm/
  8. fundera – https://www.fundera.com/resources/mlm-statistics
  9. liveabout – https://www.liveabout.com/the-likelihood-of-mlm-success-1794500
  10. nih – https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8291665/
  11. slader – https://www.slader.com/discussion/question/successful-companies-such-as-amway-herbalife-and-nuskin-employ-multilevel-marketing-mlm-schemes-to-d/

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