GITNUX MARKETDATA REPORT 2023

Must-Know Network Marketing Statistics [Current Data]

Facts about this Market Data Report

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Highlights: The Most Important Network Marketing Statistics

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MLM (multi-level marketing), often referred to as network marketing, has existed for a while and is a quickly expanding economic sector. Being one of the most lucrative ventures available, it provides the opportunity for substantial financial gain for those who put in the work.

Network marketing statistics are incredibly informative when it comes to getting an idea of the sector's impact on both the global economy and individual business owners. Are you interested in getting involved in network marketing? Our article will help you understand the network marketing industry, covering its history and evolution, its potential for profits, the success rate of participants, and its challenges in today's business world.

Network Marketing: The Most Important Statistics

A whopping 90% of Americans entered network marketing in an attempt to benefit from the $36 billion sector.
Globally, 10.5 million individuals have full-time employment in the network marketing industry.
In 2019, the direct selling sector generated sales of around $180,479 billion.

General Statistics On Network Marketing

Network marketing is an ever-growing industry, with more and more people looking to join the sector each day.

As reported by the World Federation of Direct Selling Associations (WFDSA), the direct selling sector saw tremendous expansion in 2020, with an estimated 125 million individuals engaged in this sector globally, and is expected to generate close to $200 billion in annual sales by 2021.

More than 20 million Americans have discovered the appeal of multi-level marketing.

A survey conducted by the Direct Selling Association in the US found that network marketers have an average success rate of almost 50%, with most earning a profit within their first 3 months.

In addition, a survey conducted by the Global Entrepreneurship Monitor reported that around 4.5 million people started a new business in the US alone in 2017, with 35% of those businesses being network marketing-based. 

Further, only 25% of businesses made a profit, 14% of which made less than $5,000, 6% between $5,000 and $9,999 and 3% each between $10,000 and $24,999 as well as making over $25,000 

Moreover, statistics revealed that roughly 90% of network marketers are satisfied with their businesses, rating them an 8 out of 10 or higher.

Network Marketing History

Network marketing has a long history. 

Avon was established in 1886. It is the oldest direct-selling company in the world, and it has had some of the most successful distributors ever. It is still one of the biggest companies in the MLM sector.

A 1980 network marketing study found that, despite the success of pioneers such as James Robinson Graves in the nineteenth century, network marketing companies remain a gamble for those who participate. 99% of network distributors end up losing money.

Amway's all-time top distributor moved $2 billion worth of products through his network, while most direct-selling professionals who work full-time or part-time earn only a fraction of that, an average of $5,176 in sales per year. 

A survey found that selling bibles at that time was a much more successful endeavour; over one-third of respondents reported they were able to make a living selling bibles.

It has been found that only 7% of Amway distributors reach the "Diamond" level of success, with their incomes averaging between $165,000 and $240,000.

Further, the majority of Amway distributors make much less, with nearly 70% reporting that their incomes are below $6,000 per year.

Network Marketing Global Statistics

Global statistics are quite revealing when it comes to network marketing.

The total amount of global direct sales increased by 1.5% compared to the previous year. 

Network marketing is thought to be practised by around 16 million individuals in the US alone, and experts in the industry typically earn $9,000 a year on average.

A survey found that MLM generates an average of $32.5 billion in sales annually, and the worldwide network marketing industry is estimated to be worth around $180 billion.

It has been reported that network marketing is now one of the most preferred options for millennials in the US and Canada, with 66% of those surveyed saying that they were either currently involved in network marketing or were interested in starting.

According to Epixel, Asia had the largest direct sales market prior to the onset of COVID-19, with nearly 70 million people involved in direct sales, far exceeding the number of Americans (33.7 million), Europeans (14.5 million), and Africans (7.6 million) who were involved.

MLM companies have grown substantially in the US, becoming a significant part of the economy with a combined revenue of almost $20 billion.

Around 42.9 million people are embracing direct selling as an alternative way to make a living.

With the increasing popularity of network marketing, it is clear that this business model has become a viable option for people looking to make money.

Network Marketing Success Statistics

The majority of respondents who have engaged in network marketing, according to the survey's findings, have seen remarkable success.

Survey respondents reported that the majority of them (67%) had achieved success, with the remainder reporting mixed results.

Further, nearly a quarter (24%) reported earning at least six figures in annual income.

Likewise, a study made revealed that 90% of network marketers who had remained in the industry for 2 or more reported having achieved success. 

In Germany, a survey conducted by the Institute of Financial Management, revealed that 41% of participants had made a profit in the past year and 53% were confident they would make a profit in the upcoming year. 

These surveys demonstrate that network marketing can be a path to success for many, provided they remain in the industry for an extended period of time.

Women in Network Marketing

Women also have their own share of success in network marketing.

114% more women are starting their own businesses now than there were 20 years ago.

In 2021, it has been reported that there are 41 female CEOs leading Fortune 500 companies, representing 8.2% of all Fortune 500 CEOs. 

The Direct Selling Association revealed that 68% of the women who participated in network marketing had made profits, with only 10% not making a profit. 

A survey revealed that companies in North America and Europe have an average of 5-8% female representation in their executive ranks, while companies in Asia, South America, and Africa are dominated by male executives with only 2-4% female representation 

74% of the women in the US involved in direct marketing are actively engaged in selling and purchasing goods or services at discounted prices. 

Just 6% of them are under 25, with the bulk being in the 35–44 age range.

On one hand, in India, 2.7 million women are taking advantage of the opportunities afforded by direct marketing and network marketing.

On the other hand, in Europe, women make up roughly one-third of the direct marketing workforce, with 45% of that number coming from the United Kingdom alone.

Network Marketing Companies Statistics

The statistics of network marketing companies reveal a disparity between different parts of the world. 

The biggest companies in the MLM industry are Avon, Amway, Herbalife, and Tupperware, located in many countries throughout the world.

Herbalife has become a global phenomenon, with a vast network of around 4.5 million independent sellers and members scattered across 94 countries. 

In 2021, the global revenue generated from Herbalife's products and services exceeded $5.8 billion. 

In addition, it constitutes a significant part of the Asia Pacific market, with a 27.33% market share.

When it comes to Avon, it has witnessed a decline in sales and revenue over the past few years, in 2021 its revenue fell even further to $3.4 billion. 

OmegaPro started as a small business and grew exponentially in a short period of time, with a staggering 900% rate of growth from its founding in 2019 to reach $250 million in revenue by 2021.

Network Marketing Challenges

Despite the impressive growth of network marketing, it still faces numerous challenges.

A survey conducted in 2019 revealed that the majority of participants (66%) felt that network marketing companies were unreliable and untrustworthy and lacked transparency when it came to product information. 

Furthermore, the majority of participants (70%) felt that network marketing was a waste of time and not worth the effort required.

Another survey conducted in 2020 found that the majority of participants (81%) felt that network marketing was saturated with too many products, leading to difficulty distinguishing one product from another.

And in 2021, it has been found that the majority of participants (84%) felt that network marketing was an unethical business model, and did not treat customers fairly or with respect. 

67% of business owners themselves believe that it is difficult to make a consistent profit and that it isn't worth their time or effort. 

Supplementary Statistics

The global network marketing industry was valued at 180.45 billion USD in 2018.

This highlights the fact that network marketing is a lucrative business opportunity that is worth investing in. It also shows that the industry is growing and is becoming increasingly popular, which is a great sign for those looking to get involved in network marketing.

Health and wellness products make up 33.8% of network marketing sales worldwide.

Network marketing is a viable option for those looking to make a living selling health and wellness products, and that it is a popular choice among consumers. This is a great reminder that network marketing is a viable option for those looking to make a living selling health and wellness products, and that it is a popular choice among consumers.

More than 91% of network marketers are part-time in the network marketing industry, and only 8.3% work full-time.

The biggest part of network marketers are not able to make a full-time living from their efforts, and that the industry is largely populated by individuals who are supplementing their income with part-time work. This is an important statistic to consider when discussing the network marketing industry, as it provides insight into the realities of the industry and the challenges faced by those who are involved in it.

90% of network marketers earn less than $5000 a year from their activities.

Most of those involved in the industry are not reaping the financial rewards they may have hoped for. It serves as a warning to those considering entering the field, and a reminder to those already involved that success is not guaranteed.

Women account for 74% of network marketing representatives in the United States.

This statistic is a powerful reminder of the impact women have had on the network marketing industry in the United States. It speaks to the strength and resilience of female entrepreneurs, who have been able to make a significant impact in a traditionally male-dominated field. It also highlights the potential of network marketing as a viable career option for women, and the importance of recognizing and supporting female entrepreneurs in this space.

The average age of a network marketer is 39 years old.

Knowing this can be used to inform decisions about marketing strategies, product development, and other aspects of the business. Additionally, it can be used to compare the average age of network marketers to other industries, providing a valuable comparison point.

According to a survey, about 50% of people leave their network marketing business within the first year, and over 95% leave within five years.

The vast majority of people who enter the field do not stay in it for long. This statistic is an important one to consider when discussing the success of network marketing, as it highlights the difficulty of sustaining a career in the field.

In 2019, Amway was the top-grossing network marketing company globally, with revenues of 8.8 billion USD.

This is a testament to the success of network marketing, demonstrating that it is a viable business model that can generate significant revenue. It also serves as an example of the potential of network marketing, showing that it can be a lucrative and successful venture. Furthermore, it highlights the importance of Amway as a leader in the network marketing industry, and provides a benchmark for other companies to strive for.

59% of people consider joining network marketing opportunities for supplemental income.

It shows that a majority of people are interested in exploring these opportunities as a way to supplement their income, indicating that network marketing is a viable option for many.

By 2025, global network marketing industry market size is expected to reach 299.76 billion USD.

This shows that the industry is growing rapidly and is expected to reach a staggering 299.76 billion USD by 2025. This is a clear indication that network marketing is a viable business opportunity and one that should not be overlooked.

Approximately 30% of network marketing businesses are health and wellness companies.

Network marketing is a viable option for those looking to promote health and wellness products, and that there is a large market for such products. Furthermore, it shows that network marketing is a viable option for entrepreneurs looking to start a business in the health and wellness industry.

More than 70% of people who get involved in network marketing are dissatisfied with their experience.

It serves as a warning to those considering getting involved in the industry, that the majority of people who do so are not satisfied with their experience. It is an important statistic to consider when researching network marketing, and should be taken into account when making decisions about whether or not to pursue it.

More than 25% of the worldwide network marketing sales take place in Asia-Pacific countries.

The region is a major player in the industry, and businesses should therefore consider investing in the area to capitalize on the lucrative opportunities it offers.

80% of successful network marketers have used social media platforms for marketing and expanding their businesses.

The majority of successful network marketers have used social media to grow their businesses, demonstrating the potential of these platforms for network marketing. This statistic is an important piece of information for anyone interested in network marketing, as it highlights the importance of social media in achieving success.

Individuals joining network marketing businesses have an 80% chance they won't have relevant prior marketing experience.

With only a 20% chance of having relevant prior marketing experience, it is clear that the majority of individuals joining network marketing businesses are starting from a disadvantage. This serves as a reminder that network marketing is not a get-rich-quick scheme, but rather a business that requires dedication and hard work to be successful.

Conclusion

To conclude, it is true that Network Marketing is a promising business opportunity with the potential to generate substantial profits; however, it is mandatory to take into account the high levels of competition as well as potential ethical dilemmas that may arise in order to make a successful venture.

References

Epixel MLM Software: “100+ MLM statistics you need for 2023!”, cited in February 2023 (Source)

Abdalslam: “Multi-Level Marketing (MLM) Statistics, Trends And Facts 2023”, cited in February 2023 (Source)

Infinite mlm software: “Top 70 Trending MLM Statistics 2023”, cited in February 2023 (Source)

Codeless: “Top Network Marketing Statistics In 2022”, cited in February 2023 (Source)

Source: “24 Network Marketing Statistics to Keep Things Clear”, cited in February 2023 (Source)

Modern Gentleman: “Title of the Source”, cited in February 2023 (Source)

TRUELIST: “MLM Statistics – 2023”, cited in February 2023 (Source)

Fundera: “10 MLM Statistics You Need to Know”, cited in February 2023 (Source)

Passive Secrets: “47+ Top Multi-Level And Network Marketing Statistics, Facts & Trends”, cited in February 2023 (Source)

Frequently Asked Questions

Multi-level marketing (MLM), also commonly known as network marketing, is a business strategy in which individuals act as distributors for a company’s goods or services and receive commissions for both their own sales and those of the people they sign up as partners in the enterprise (referred to as their “downline”).
With network marketing, you may earn money by promoting the goods or services of the business and encouraging others to follow suit. You get paid a commission on your own sales as well as a share of the profits generated by the clients you bring on board.
When choosing a network marketing company to work with, it’s important to do your research and make sure the company is reputable and has a track record of success. Look for a company with high-quality products or services that you believe in and are passionate about. Also, make sure the compensation plan is fair and sustainable.
Strong interpersonal relationships and communication abilities, as well as the desire to put in a lot of effort and perseverance, are necessary for success in network marketing. Also, it’s critical to have a positive outlook and be open to learning and development.
Some common mistakes to avoid in Network Marketing include spamming people with sales messages, not focusing on building relationships, being too pushy or aggressive, and not investing in personal development. It’s important to follow a proven system and be patient and consistent in your efforts.
How we write these articles

We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly. See our Editorial Guidelines.

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