Top MLM Statistics (2024)

Direct selling business relies heavily on network marketing statistics, data, and facts to make decisions that are not based on assumptions or are prone to failure. Understanding MLM statistics is crucial for business success and informed decision-making.

The numbers offer a better understanding of industry size, growth, and participation rates. Besides all these, MLM statistics help with strategic planning, performance benchmarking, and risk assessment.

The multi-level marketing industry (MLM), also known as direct selling, has experienced rapid growth and expansion over the past decade, according to MLM statistics. Here is an in-depth look at key stats shaping the MLM landscape:

1. Regional Statistics

• In 2022, the United States dominated the global direct selling market with a 23% market share.

• In 2022, the direct selling market worldwide made 173 billion U.S. dollars in retail sales.

• When examining the primary direct selling markets in Europe for the year 2022, Germany notably emerges with an impressive figure of nearly 18 billion U.S. dollars in retail sales.

2. Distributor Statistics

• In 2022, Over 114 million independent representatives were involved in the direct selling market worldwide.

• According to AARP Foundation Research study Report, it is revealed that over four in ten (44%) MLM participants worked at least for less than one year.

3. Company Statistics

• Amway was the world’s leading direct-selling company with a global revenue of just over eight billion U.S. dollars in 2022.

• In 2022, Avon's beauty segment generated approximately 2.04 billion U.S. dollars in net sales.

• Herbalife reported global net sales of 5.2 billion U.S. dollars in 2022, which constitutes a decrease of nearly 600 million U.S. dollars in comparison to the previous year.

• In 2022, Avon's revenue was approximately 2.77 billion U.S. dollars, a significant decrease from around 9.23 billion U.S. dollars generated a decade earlier.

• Nu Skin generated approximately 2.23 billion U.S. dollars in revenue in the year 2022.

• In 2022, Nu Skin recorded 1.15 million customers globally.

Also Read: Top 100 MLM Companies in 2023

4. Product Statistics

• The global direct selling industry generated around 30 percent of its retail sales through wellness product sales in 2022.

5. Women in MLM Statistics

• About three-quarters of people involved in the direct selling community in the U.S are female.

• According to AARP Foundation Research study Report, it is revealed that 60% of MLM participants are female.

6. MLM Industry Statistics

The MLM industry statistics play a crucial role in successfully navigating through the expanding landscape of the direct selling industry. It also shows where the industry is heading and how direct-selling leaders can get the best out of it.

• Direct Selling in the United States represents $40.5 billion in retail sales in 2022.

• In 2022 the highest sales is done by the wellness category which is around 34.7%.

• The number of direct sellers decreased slightly, with 6.7 million U.S. entrepreneurs selling on a part-time or full-time basis.

7. Other MLM Statistics

• The average age of first-time MLM participants is 29 years old, with almost half (48%) falling within the age range of 18-25.

• 65% percent of MLM participants stated they felt that they would not choose to join the same MLM company again.

• The majority (75%) of MLM participants had no prior experience in commission-based sales before joining MLM.

Conclusion

MLM statistics presents an ever-changing environment full of both challenges and opportunities at the same time. Even though statistics point to issues of success rates as well as losses, it is very much essential for MLM Business to adopt the latest digital technology to be ahead of competition. Global MLM software is a powerful MLM Software, which helps in streamlining your MLM Business and scale it with the power of technology.

FAQS

1. What are the benefits of MLM statistics?

The benefits of MLM statistics are performance evaluation, industry insights, Investment decision making, Consumer awareness etc.

2. Are all MLM companies pyramid schemes?

No, not all MLM companies are pyramid schemes. Legitimate MLMs focus primarily on sales of actual products or services. Pyramid schemes focus primarily on recruiting new members without a genuine product or service.

3. What is a fact about MLM?

Multi-Level Marketing (MLM) has become increasingly popular in recent decades as a business model. In this approach, companies distribute their products through a network of independent distributors, allowing them to earn commissions not only on their own sales but also on the sales generated by those they recruit.

References
1) statista.com
2) aarp.org
3) amwayglobal.com
4) dsa.org
5) static1.squarespace.com