Implies the opportunity direct selling provides. But from the data, it is clear that popularity isn’t the factor that makes people buy products. 2. The usage of social media around the world is ever-increasing. Except as footnoted, figures for sales and independent representatives are based on the entire industry. 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. Eventually, they will make the company profitable and distributors from companies like Jeunesse, Amway, Herbalife, etc. You must have JavaScript enabled to use this form. Full-time distributors earn an annual increment of $300. More efforts have to be put forward for younger, older generations to collectively call business as a complete world-class choice! Direct selling companies who have DSA membership follows the DSA code of ethics and offer 90% buyback on starter-kit distributors purchase. This particular group has to study a lot and at the end of the day, they go for industrial expert opinions and consulting. 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 subscription can be made for two weeks interval, a month or more and is subjected to alter. Network Marketing Company List. With over $1.935 trillion in ecommerce sales, China was the biggest ecommerce market in the world in 2019. … Companies can use the stats and customer suggestions to pull out the magnet and thereby acquire more customers. The entrepreneurs have to look into the system deeply from industrial history to the consumers’ reaction over the products. 91% of GenZers are interested in flexible income earning opportunities. Now, they’ve expanded their networks across multiple countries. 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. However, Avon’s search interest began to decline after reaching its maximum. The best time is NOW!!. Not to mention, face-to-face meeting is vital to establish a strong relationship with your … It reached 100 points in November 2015. Overall, the network marketing industry will witness top-notch growth in the years to come. 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 marketing world is dynamic and ever-changing — trends, technology, and tactics are never stagnant. In 2019-20, wellness products shared 35.6% of sales contribution globally. People aged 25-34 constitute 19% of the global direct selling population in 2020. Amway has employed 3,000,000 distributors with average revenue of $2,800 per distributor. People also find the industry a good choice after the retirement period. Here are those:-. Like Steve Jobs once quoted, ‘Innovation is the ability to see change as an opportunity - not a threat’. Epixel MLM Software anchored 200+ network marketing companies to success through their business process automation in more than 88 countries. 44.2 million people find it interesting to consider direct selling as a part-time career option. It has always served as the easiest way to effectively communicate with them, and to build a bond of trust. A decline of 6.5% in revenue growth from 2018- 19 is observed this year. Products will be manufactured at a low cost, which will increase the scope of profits on their selling prices. Launched into the world of yummy and healthy food manufacturing in 2009, the success rate of the “graze box” went up in no time. Her husband had the same doubt when they were having the discussion about it. 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. Basically, they sell a box of nutritious snacks with various combinations with a view of making people love healthy food. Graze is a UK-headquartered food manufacturing/selling company who implemented a graceful marketing model. The strategy is only provided in network marketing and not for a direct customer who enters the website and makes a regular order. 27.9% of direct selling companies prefer party plans, 7.5% prefer direct orders as their business models. There are thousands of direct selling enterprises that are striving hard to reach those exceptional sales figures. By continuing you consent to our privacy policy. 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 … 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. The most important ingredient in the industry that connects every group is the product. Here are staggering network marketing statistics. Let’s see some interesting stats that might help you to analyze if the industry is suitable for you or not. 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. Millions of brands are becoming actively ready to partner with network marketing companies. 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. Somewhere in the world, a new home-based business kick starts every 10 seconds. 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. The following statistics and insights show the entrepreneurship opportunities offered in the direct sales industry. Avon steals the trending deal out of every competitor's trend volume. 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. A study can be made to find the cause and how to overrule it as a perfect solution which remains stable for the future. In 2016, 31% of consumers find direct selling highly favorable in the USA. Start building your Network Marketing business with brand new Epixel MLM Software®. Based on the above stats, it is but obvious that as an industry, network marketing will have a great future. China is the largest marketplace for … Social Media Marketing 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% … Amway has reported a 5% revenue decline for 2019. MONAT Wellness reports a record-high sales of $10 million in the first 24 hours. Distributors or salespeople in the industry have a major role to play and they choose this role either as a career or as a secondary income source. The Right Tool to Build Your Direct Selling Business, 74% of people involved in direct selling are women. Currently, there are several companies operating as established players in the network marketing industry. Sales figures are expressed at Estimated Retail level and exclude Value Added Tax. After all, the meaning and the goal of this business model is to sell products and if the product selling is not the goal then you have to take a close on it as it falls under illegal pyramid schemes. Marketing is an important aspect which has to gain enough boost in the digital world. According to leading international trade reports, it has been estimated that the overall valuation of the network marketing industry had surpassed US$ 150 billion by the third quarter of 2019. 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. 63.5% of direct selling companies use person to person selling methods and find it beneficial. As an entrepreneur, you can use the data above to find and sketch a pattern that lets you dominate the business, no worries! 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. dsa.org wfdsa.org ipsos.com businessforhome.org directsellingnews.com *DSA 2020 Consumer Attitudes and Entrepreneurship Study conducted by Ipsos. 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. 1. I love this type (...), Thank you for these informative blogs! In such a context, if we evaluate the direct selling industry, things are pretty different. Herbalife operates in 94 countries through a network of approximately 4.5 million independent distributors and members. In 2017, record-breaking statistics have been witnessed in the industry with 116.7 million distributors. China is the largest marketplace for MLM, surpassing the US in the recent past. The Distributors. 99% of direct sellers are high school graduates, and 52% among them are degree holders or college graduates. for 1+3, enter 4. In 2018, Amway has made 2.3% growth in terms of annual revenue compared to that of 2017 revenue. The plan that attracts every health enthusiast with a graze box! The economically-progressive country is spearheading the global marketplace for network marketing with its compliant trade policies and customer protection laws. I am very (...). Top 10 Must-Know Network Marketing Industry Statistics of 2020! The second-largest ecommerce market in the world … Proper use of every marketing channel, consistently engaging with the customers is the key! Impressive! They renamed later into Southwestern advantage and the revenue they generated in 2019 is around $138M. Over 6,400 salespeople work for Avon product selling alone in the US regions. The average cost-per-click in Google Ads across all industries is $2.69 on the search network … 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. 25% among the direct sellers were from the age group 45-54. 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. Direct selling representatives spend an average time of 30 hours per week. About 10% of distributors earn over $100 a week through their marketing efforts and skills. The working or marketing style varies from one another in direct selling and normal sales. (‘19). The world is moving to a new normal. The MLM company to hit the maximum points with peak popularity is Avon. 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. 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. We can help you with that part and make you clear with more facts. *, 69% find supporting small businesses as an appealing attribute of direct selling. Back in 1999, Avon appointed Andrea Jung as their first female CEO. 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. South Korea is also among the top countries to witness stimulating growth in the direct selling industry. Clara is now all set with the list of pals from her friends circle to initiate sales pitching !!. Hearing this, Clara, who was already in search of a product to kickstart her direct selling business, now knew what it should be. But in a situation like what we have now, marketing that happens in such a fashion has drastically reduced. The time at which she entered the industry and her choice of product elevated professional growth. So it is important to be informed about these possibilities to get your business through this hard time. … About 75% of the customer/direct sellers are women and 25% are men. However, when it comes to the network marketing model, the first box so referred is free of cost, isn’t that interesting? Not only that, it has been successfully able to provide an alternative income to many who lost their jobs during this destructive pandemic. *, 79% of Americans consider direct selling as an attractive option for entrepreneurial opportunities. The three countries bring in close to $90 billion in revenue. The COVID-19 pandemic has had a severe impact on every business. 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. 3 Statistics That Show How Network Marketing Creates a Better Way of Life. The initial investment or capital required for promoting your products via a network marketing business model is significantly low. 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. 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. Many people are not able to believe that network marketing works. China, US, and South Korea are the top markets. According to the surveys, 25% of participants made money through network marketing. 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. Best regards, PPC. 3,500 salespeople work for Mary Kay in the USA. Germany and Japan hold 4th and 5th positions in the list with $17.4 billion and $15.6 billion respectively. In 2019, wellness products marked 45% sales and cosmetics 28% sales in Australia alone. The turn is now yours. Several direct selling companies, who were emerging successful, were compelled to be shut down due to the growing misrepresentation of this business model as a pyramid scheme. Among the products, there exist many categories and direct selling is the best available business model to reach them to the end-users, i.e the consumers and then the customer-distributor conversion that helps product selling companies to make products distributorship revenue. Source: eMarketer. That's why it's critical that your business stays up to date with new developments in the industry — … To give more insights to her partners, and to help them in their journey along with her towards developing a successful business, she was also ready with some important data. Now the plan is fixed. Wasn’t it prodigious to know that like any other industries in the world, direct selling too has companies that generate billions of dollars every year, and that the competition among them is pretty tight? In 2020, network marketing businesses from around the world are slated to bring in an estimated US$ 200 million every day. 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. From there, her journey to successful home income began. In 2020 and beyond, the network marketing industry is slated to remain one of the highest-earning industries in the global economic diaspora. 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. Direct selling is one of those industries that could turn the crisis into opportunity. Why Is Direct Selling Profit Is More Than Any Other Business? Your email address will not be published. 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? The top MLM … They do find this method very useful. Let’s focus on network marketing profession and statistics. This particular point has been constant trouble for direct selling companies and those who attained customer retention have survived for long. Let’s see some more interesting facts about the distributors and some motivational facts. 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. It is one of the most trusted ways of generating customer base. Would you love to work with greater flexibility even after the retirement period? 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. Even though 74% of people involved in direct selling belong to women, there is something missing from their side. 58% 58% of the affiliate purchases was made on a mobile device in 2018. In late 2017 a study was performed by Mckinsey Global … With that consistent increase in audience, email continues to be one of the most productive advertising mediums. MLM & Direct Sales Software for Health & Wellness, Top 100 Business Earners in Network Marketing World! Network marketing is prevalent on all continents and is widely operated in developing and developed countries. With its initial success in the West, especially in the US, network marketing soared to new heights as a top-grossing business vertical. Nowadays, it is the … It was to demonstrate what are the consumer trends in the market and how customers around the world felt about direct products. The average conversion rate in Google Ads across all industries is 3.75% on the search network and 0.77% on the display network. 10 Most Important Influencer Marketing Statistics for 2020. agree to this point with ample earners as couples. 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. This comes as no surprise, as up to 70% of internet traffic comes from mobile devices and 39% … Let's look into a few possible changes the direct selling industry has to incorporate in order to suit the ‘NEW NORMAL’. Different age groups have different levels of criteria that make them pick a product from different available brands. Network marketing global statistics show that the industry has massive potential, with the top three players being the USA, China, and Korea. 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. Implies the ease with which direct selling can be initiated. 23% of the direct sales consumers belong to the age group 55 and above. In the past decade, however, the business of network marketing has faced considerable flak from the public and the regulatory institutions. Online campaigns, co-branding, point of purchase (POP) marketing etc. Their motive and business model was perfect and offered stable growth. Email Marketing. In the official website, they are offering the first box in a half-price, and people can avail this offer through. Fill up and remark your valuable comment. About 26% who contributed to the direct selling crowd were from the age group 35-44 in 2020. Being the mother of a two-year-old, it was difficult for her to be in a full-time job and fulfill her responsibilities as a mom at the same time. ('17), 74% of the new customers are women and 26% from men. 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. It has been reportedly forecasted that the network marketing industry can witness a year-on-year growth of over 20% in the coming years. Most of such talks happened during social gatherings and similar occasions. The numbers also suggest motivation among people who choose direct selling as a profession. 64% of individuals find product discounts as a motivational factor to choose direct selling as a career. It’s without a doubt one of the most popular online activities that users engage in. Regional network marketing statistics 2017 worldwide industry sales were $189.6 billion—up 1.6% (adjusted to 2017 USD). 23% of the organizations in the network marketing industry focus on health and wellness… The betterment in technology has also made this approach seamless. To answer this concern at first place, she needs to know about how good her choice of product is doing in the market. Fast forwarding, Clara’s career transformation from being a mere homemaker to a successful direct selling entrepreneur was smooth and swift. Top 100 MLM Companies in the world 2020 | The 2020 List of Network Marketing Company, Who Will Be The Highest Earner in Network Marketing? 36.6 million customers have bought products/services from the network marketing model. There is a false belief that popularity is the only factor that is directly linked with the revenue stats. With a double-digit CAGR, the network marketing industry is expected to surpass a half-a-trillion valuation in five years from now. Affiliate marketing is a global industry worth well over $12 billion. With their efforts and effective routines, they have been able to transform their lives as well as many others’ too. 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. Right from the time direct selling flourished, most of the marketing part was done offline through word-of-mouth. With the influence of AI in consumer behavior analysis, the network marketing activities are also likely to be modernized in the near future. When the talent unites with flexible timings, good understanding, and other aspects, companies hire or employ couples as their distributors. Almost every home has at least one product or received a service from the network marketing industry. Primerica, founded in 1977 has employed 100,000 distributors with an average of $22,000 per distributor. Statistics, facts, data and insights from the Direct Selling Association regarding the direct selling industry. 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. Social media is yet another tool to perform sales and reach. 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 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. Influencer marketing is gaining more traction and investment than ever before. *, U.S. consumers have positive perceptions towards direct selling and this has remained stable over the past 10 years. Retail sales of an average direct seller was $5176 in 2019. 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 … Education is not a barrier in marketing but customer acquisition with a proper set of presentation ability is a must-need skill to acquire. Clara has started her journey to top the list with her masterful network of distributors. SMEs are preferring the distribution of their goods through network marketing companies, primarily due to low investment and comparatively high returns. In addition to this, technological adoption and network marketing software have made these businesses more cost-effective. Clearly we see, people are into direct selling as distributors, and it is welcomed as a profession by the multitude. Not to mention, face-to-face meeting is vital to establish a strong relationship with your distributors as well as customers. E.g. 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