39 Network Marketing and MLM Statistics

With over 20 million Americans engaged in multi-level marketing (MLM), this model has become vital to today’s business landscape.

Network marketing, the strategy of distributing goods and services through a network of independent distributors, is widespread and impactful, driving significant revenue worldwide.

MLM and network marketing provide various products and services, from wellness to personal care, popularized by their unique business approach.

The industry is marked by a dynamic mix of demographics, with many participants boasting higher education degrees.

In this article, I thoroughly discuss 39 top Network Marketing and MLM Statistics. With a broad range of earnings and experiences, understanding the statistics behind this industry gives insight into its complexities and successes.

1. The direct selling market was valued at USD 207.3 billion in 2022 and is predicted to grow to USD 392.6 billion by 2032, with a CAGR of 6.7%.

(Source: DataHorizzon Research)

This consistent rise reflects the increased acceptance of direct selling and its resilience in the dynamic marketplace.

This sector’s performance represents a compounded interplay of innovative marketing strategies, direct customer relations, and personalized selling experiences.

Your grasp of these dynamics can be critical in harnessing the potential within the direct selling landscape over the coming decade.

2. Network marketing is a booming industry with an estimated global market size of $180 billion.

(Source: Gitnux)

Network marketing, often synonymous with multi-level marketing (MLM), represents a significant segment of the global economy.

These statistics should be more than just numbers; they reflect the dynamic nature of network marketing and its capacity for growth and resilience in fluctuating markets. Your awareness of these trends positions you better for making informed decisions within the MLM landscape.

3. The global MLM market was valued at $201 billion in 2022, and it is expected to reach $329 billion by the end of 2030, with a CAGR of almost 6.5% between 2023 and 2030.

(Source: Grandview Research)

Your involvement in MLM during this period could mean capitalizing on the market’s positive trajectory.

The trend indicates an opportunity for entrants and veterans alike to find continued or new success. Keep abreast of market trends and innovations to ensure you can make informed decisions in this evolving space.

4. Approximately 116 million people are involved in direct selling worldwide.

(Source: Gitnux)

This robust community consists of independent representatives who engage in personal selling, often away from a fixed retail location. These individuals form the backbone of many companies, commonly recognized under the multi-level marketing (MLM) structure.

Here’s how this immense force is distributed internationally:

• Asia Pacific: The most significant contributor with expansive network marketing engagement.
• Americas: Notably, there are high levels of participation, but recent trends suggest shifts in numbers.
• Europe: A significant portion of direct sellers are resilient in market presence.
• Africa & Middle East: Emerging markets with potential growth in direct selling roles.

These numbers are not stagnant in terms of demographics.

You should note that participation has seen an overall increase in recent years, reflecting the flexible nature of this kind of employment and its appeal to those seeking non-traditional job roles or supplementary income.

5. The average age of a network marketer is 35-44.

(Source: Wifi Talents)

This demographic is a core part of the workforce, reflecting the experience and maturity they bring to this sector.

This age group’s distribution isn’t just an isolated statistic. It ties into broader trends in the workforce and the evolving career paths that many are choosing in the modern economy.

You are certainly not alone if you’re in this age range and considering a foray into network marketing. Your age bracket is regarded as one of the most active and thriving in the industry.

6. Network marketers have an average success rate of almost 50%, and most earn a profit within their first three months.

Your entry into network marketing is accompanied by notable optimism, as current data indicate a promising outlook for new marketers.

About half of those who venture into network marketing report success relatively early in their endeavors. This means you have a substantial chance of seeing profit from your network marketing activities, potentially within your first quarter of engagement.

7. Over 60% of Network Marketers Have a College Degree.

(Source: True List)

Education plays a significant role in the network marketing landscape.

This statistic indicates the industry’s intellectual capital and suggests that higher education may contribute to the effectiveness and savvy of those involved in this business model.

Remember, while a degree can give you a good foundation, your success in network marketing will also hinge on your ability to apply what you’ve learned, engage with your network, and stay current with industry trends.

8. The most popular product categories in network marketing are wellness, beauty, and personal care.

(Source: Direct Selling Association)

Your involvement in these sectors means you are at the heart of network marketing’s most engaging and highest-revenue-generating areas.

Within wellness, you will discover many products ranging from vitamins and supplements to weight loss solutions. This category caters to consumers’ ever-increasing health consciousness. It’s a realm that thrives on a dedication to improving personal well-being.

Moving on to beauty and cosmetics, skincare, makeup, and haircare are key sales drivers. Your entry into this segment leverages the persistent demand for products that enhance personal appearance and grooming standards.

As for personal care, this category remains robust with items essential for everyday hygiene and self-maintenance. By focusing here, you tap into a market where products are often seen as necessities, leading to repeat purchases and customer loyalty.

9. The average annual income for a direct seller in the US was $2,400 in 2011.

(Source: Direct Selling Association)

This figure indicates the earnings one might expect, yet it’s crucial to acknowledge that income can vary widely. Factors influencing this variation include the level of effort, the amount of time invested, and the specific MLM company’s compensation structure.

Consider this income as supplementary rather than a primary source. The majority of direct sellers treat this endeavor as a part-time job or a way to earn extra money on the side.

Remember, these figures are averages and not guarantees. Your income may be higher or lower based on your personal sales strategy, the network you build, and the time you dedicate to your direct selling business.

10. About one in 13 adults have participated in multilevel marketing (MLM).

(Source: Fundera)

Your experience with MLM may be closer to home than you realize. Evidence suggests that approximately 8% of American adults have been involved with multilevel marketing endeavors at one point or another.

11. Over 80% of network marketers use social media to promote their businesses.

Social media is a pivotal platform for promotion and customer engagement in the fast-paced network marketing environment.

Leverage the social media platforms that align with your target market. Instagram and TikTok could be incredibly effective if your audience is predominantly young adults. For a more general audience, Facebook’s vast user base offers unparalleled reach.

Why is social media so popular among network marketers?

Social media’s extensive user base allows you to connect with a broad audience quickly and efficiently. Many social media tools are free or low-cost, making them accessible even to newcomers.

Platforms offer sophisticated targeting options to reach specific demographics, and you can foster and maintain customer relationships and create a loyal community around your brand.

12. Jessie Lee Ward from the USA had established herself as the top earner in network marketing worldwide, with an estimated annual income of $18,000,000.

You may be interested in how she climbed the ladder to become the global leading earner. Her financial achievements are notable in an industry known for its variable income scale.

Her ascendancy in multi-level marketing (MLM) is characterized by a remarkable ability to build a strong network of sellers. Indeed, her income reflects the culmination of strategic business practices and an expansive reach within the industry.

Additionally, you may find it impressive that Ward’s influence extended beyond economic success. As a mentor, she recruited and trained many sellers who attribute their MLM achievements to her guidance.

13. Network marketers work an average of 13.3 hours per week.

(Source: Beehiiv Blog)

Time management is crucial when you engage in network marketing. This statistic indicates the part-time nature of these roles for many network marketers.

It is essential to understand how these hours translate into income. While the hours worked provide a framework for your potential earnings, they do not guarantee a specific income level.

14. As of 2022, the United States was the leading direct-selling market in the world, with a market share of 23 percent. Korea, Germany, and China followed at around 10 percent each.

(Source: Statista)

The United States established itself as the dominant force in the direct selling industry. This significant proportion underlines the country’s primary role in shaping the direct selling landscape.

Not far behind, key players such as Korea, Germany, and China each maintained a robust presence.

These countries have harnessed the effectiveness of direct sales and substantially impacted their respective regions.

In the broader picture, additional countries like Japan, Malaysia, and Brazil also marked their importance in the direct selling market. Their contribution shows the industry’s diverse and global nature, underpinning its growth and international reach.

15. The estimated total pay for a Network marketer in the United States is $82,693 annually, with an average salary of $75,467 annually.

(Source: Indeed)

This figure includes your base pay plus any additional compensation from commissions, bonuses, or other incentives typical for the industry.

Remember that this average encompasses a range of experience levels, market sizes, and individual performance metrics. Your salary might differ based on location, an affiliated company, and personal sales and recruiting success.

In network marketing, your income is often directly tied to your ability to sell products and services and recruit and train new distributors.

This structure means that proactive professionals with strong networks and effective strategies often find themselves on the higher pay scale, while those just starting or working part-time may earn less.

16. The Asia-Pacific region accounts for 45% of global network marketing sales, while companies’ annual sales range from $300 million to over $5 billion globally.

(Source: Gitnux)

The Asia-Pacific emerges as a cornerstone in the network marketing domain, commanding a significant slice of worldwide sales.

This reveals the vast potential and the vital foothold network marketing establishments have secured within this diverse market.

17. 70% of network marketers are dissatisfied with their experience in the industry.

You might enter network marketing with high hopes of earning significant income. However, the reality often falls short of these expectations, leading to disappointment.

The hours you need to put into network marketing can be substantial. If the return on your time investment isn’t adequate, it can be a source of dissatisfaction.

As a network marketer, you’re typically encouraged to recruit others. The pressure to grow your network can be intense and isn’t a comfortable role for everyone. The products you are trying to sell or the recruitment of team members can be challenging in a saturated market, making it hard to find success.

By being aware of these common issues that lead to dissatisfaction, you can approach network marketing with a realistic perspective and mitigate potential disappointments.

18. 90% of network marketers who had remained in the industry for two or more years reported having achieved success.

In network marketing, time and perseverance play significant roles in defining success. For you, as a network marketer or someone considering this path, understanding this can be pivotal.

Remember, these statistics imply a correlation between tenure in the industry and success, not causation.

Your results can vary widely based on factors like the company you’re with, market conditions, and personal efforts. Always perform due diligence and approach network marketing strategically and informally.

19. 74% of network marketers are female.

(Source: Direct Selling Association)

This statistic reflects the Direct Selling Association data in 2022 and underscores women’s important role in this industry.

Your participation in network marketing places you within a majority female-driven workforce. This prevalence could be attributed to several factors, such as the flexibility network marketing offers, which often complements a work-life balance sought by many women.

Additionally, the products and services offered through MLM are frequently targeted toward a female consumer base, creating a natural alignment for women to excel as network marketers.

Your understanding of and connections within these consumer segments can be a distinct advantage in building a successful network marketing career.

20. The most prominent companies in the MLM industry are Avon, Amway, Herbalife, and Tupperware, which have offices in many countries worldwide.

Multilevel Marketing (MLM) is a global phenomenon, and understanding its landscape is incomplete without recognizing the significant players.

With origins dating back to the 19th century, Avon has stood the test of time by adapting its direct-selling model to suit modern-day consumers. It boasts a significant presence worldwide, catering to beauty and personal care markets.

You might be familiar with Amway due to its extensive product range, which includes health, beauty, and home care. Amway enjoys a substantial international market share and is synonymous with the MLM model.

Nutrition is at the heart of Herbalife’s offerings, and it’s widely recognized for its weight management and wellness products. Its global outreach has led to a diverse consumer base that’s continually growing.

Known for its plastic storage and kitchenware products, Tupperware has carved a niche for itself in the MLM domain. It’s a brand that has become part of household vocabularies, a testament to its widespread acceptance.

21. Health and wellness products comprise 33.8% of network marketing sales worldwide.

(Source: Wifi Talents)

The diverse landscape of network marketing includes an extensive array of products and services. However, health and wellness products are significant in this sector’s global sales.

Your involvement in this sector capitalizes on current trends and responds to a broader shift towards preventative health care and natural products.

Remember that while the industry provides opportunities, success often requires thorough knowledge of the products, commitment to the business, and an understanding of your customer’s needs.

22. Adopting advanced technologies like AI and Data Analytics in network marketing has led to a 15-20% increase in sales efficiency.

(Source: Infinite MLM Software)

Your network marketing business has entered a new era of technological sophistication. Integrating artificial intelligence (AI) and data analytics is no longer an option; it’s a strategic imperative that has proven its value in driving sales efficiency.

When you deploy AI, you gift your business the ability to predict customer behaviors, personalize outreach, and streamline operations.

These advanced technologies interpret vast datasets to give insights into what your customers truly want.

23. The most successful network marketers have strong communication and leadership skills.

(Source: FasterCapital)

Your ability to convey messages clearly and listen actively helps recruit and retain team members. Crafting a clear message about your products or business opportunities is essential.

Remember, effective communicators are also adept listeners, a trait that helps to understand and resolve team concerns.

As a network marketer, you are at the helm of your enterprise. This requires you to inspire confidence, set goals, and guide your team towards achieving them. It’s not merely about managing people; it’s about being a role model others aspire to emulate.

These skills are not innate but can be developed through consistent practice and self-reflection.

24. 14% of network marketers have been in the business for 3-4 years.

(Source: Gitnux)

Looking at the network marketing landscape, it becomes clear that experience varies widely among participants.

This tenure suggests a level of commitment and persistence, yet it’s essential to recognize it as a middle-ground in terms of experience.

It is crucial to interpret this with a neutral viewpoint; it neither defines success nor failure. This statistic sheds light on a typical stage in the network marketing journey you may be approaching.

As you encounter fellow marketers within this range, remember that their experience level embodies a blend of learned skills and ongoing development within the industry.

25. 80% of those involved rated their direct selling experience as excellent, very good, or good, and 73% of direct sellers would recommend direct selling to others.

(Source: Direct Selling Association)

In the direct selling landscape, your experience and the satisfaction you derive from it are significant. Notably, most direct sellers have rated their direct selling experience positively—ranging from good to excellent.

This paints a promising picture for those considering direct selling as a professional venture.

The likelihood of recommendations from current direct sellers further reinforces the high approval rating.

26. Most of the 18.6 Million people involved in direct selling in the U.S. spend less than 30 Hours a Week on direct selling activities, and 4.1 Million people engaged in direct selling Are discount buyers.

(Source: Direct Selling Association)

The 18.6 million individuals involved in direct selling participate in a nuanced landscape of direct selling.

Most individuals engage in direct selling activities for less than 30 hours weekly. This indicates that, for many, direct selling is a part-time commitment or a supplement to other professional endeavors.

Moreover, within this ecosystem, a significant portion identifies as discount buyers. These people are involved in direct selling predominantly to purchase products at a reduced rate for personal use rather than to emphasize the business or entrepreneurial aspects of direct selling.

27. 99% of MLM participants are high school graduates, and 52% hold a degree or have graduated from a college.

(Source: Infinite MLM Software)

Educational backgrounds vary in multi-level marketing (MLM), but many participants have completed high school. This high rate reflects the accessibility of network marketing to those with at least a baseline level of formal education.

Beyond high school education, over half of MLM participants hold a post-secondary degree or have experienced college education.

28. At least 50% of network marketers depart within a year of starting. 90% give up after five years of starting. In ten years, 95% give up, with just those near the top remaining.

(Source: Passive Secrets)

When entering network marketing, you’re faced with a significant churn rate.

This departure could stem from various factors, such as unmet income expectations, a lack of support, or the inherent challenges of building a network marketing business.

As you progress past the one-year mark, the attrition rates climb steeply. This suggests that persistence in this industry dwindles over time, and only a fraction of participants maintain their commitment.

Moving forward to the ten-year mark, a further reduction is witnessed. At this stage, it becomes evident that longevity in network marketing is rare, and the competitive landscape often favors those at the upper echelon.

29. In 2022, the direct selling industry made $172.8 billion in retail sales.

(Source: World Federation of Direct Selling Associations)

This figure reflects the total revenue of all direct-selling activities across various markets. Despite a prevailing growth trend, this 2022 benchmark signifies a slight decrease from the industry’s peak of $175.5 billion the previous year.

These numbers let you understand the direct selling industry’s health and trajectory.

The decrease from 2021 to 2022 suggests that you are experiencing a market that, while slightly contracting, still maintains a significant economic footprint.

30. 73% of persons participating in network marketing possibilities lose or make no Money.

(Source: AARP Foundation)

When you engage in network marketing, you’re confronted with varied outcomes and must be aware of the statistical reality. A significant proportion of participants encounter financial setbacks.

You might lose money due to the need to purchase starter kits, inventory, or monthly fees that exceed your sales revenue.

Additionally, the structure of network marketing often means you are competing against other sellers in your network for the same pool of potential customers.

31. Four out of ten respondents reported that the company misled them about their chances of achieving financial success.

When you join a multi-level marketing (MLM) company, understanding the reality of your financial prospects is crucial. However, many participants report unmet expectations based on the companies’ descriptions.

By being aware of these statistics and practices, you can approach MLM opportunities with a more prepared and realistic perspective.

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

(Source: Direct Selling Association)

You’ll find a significant trend towards part-time engagement within the network marketing landscape. This approach allows you to maintain flexibility, which is often crucial for those balancing various commitments, be it another job, education, or personal responsibilities.

In contrast, only a tiny % of the industry dedicates full-time hours to network marketing. As a full-timer, you would typically consider committing more than 30 hours per week to your network marketing business. T

his level of commitment may require significant experience, a built-up network, and enough income to replace a traditional job.

33. 82% of women making over $100,000 annually do it through network marketing.

(Source: Gitnux)

When you look at the landscape of high earners, particularly women who earn more than $100,000 annually, it may surprise you that a large portion achieve this through network marketing.

This statistic indicates a trend and an overwhelming representation of women in network marketing as a path to financial success.

The implication is that for women seeking substantial earnings, network marketing presents a viable and lucrative channel.

34. Network marketers who have been in the industry for over five years make an average of $110,000 annually.

(Source: Brainz Magazine)

Your experience in the network marketing industry significantly influences your earning potential. This statistic highlights the possibility of a lucrative outcome for those who dedicate time and effort to their network marketing ventures.

As you continue to invest in your network marketing career, understanding industry trends and maintaining a solid network base will be crucial to achieving and possibly exceeding average income levels.

Remember, these figures are averages, and individual results can vary widely based on numerous factors, including your network’s size, engagement level, and market conditions.

35. People aged 25 to 34 accounted for 23% of the worldwide network marketing population in 2022.

(Source: Lead MLM Software)

In the network marketing landscape during 2022, your age group, if you were between 25 and 34 years old, represented a significant portion of the industry’s demographic.

This statistic indicates robust participation from the Millennial cohort, showcasing their tendency towards entrepreneurship and flexible business opportunities presented by network marketing.

36. 79% of people believe attending events makes them more engaged with their product or business.

(Source: Gitnux)

When you engage with an event related to network marketing or multi-level marketing (MLM), you are among the majority who find value in this practice.

This engagement isn’t superficial—it often translates into a deeper understanding and a stronger connection with the business model and its products.

Regularly participating in related events, you stay at the forefront of network marketing and MLM industry developments, which might affect your business success. Remember, this is a strategic move leveraged by many to maintain momentum and growth within their business endeavors.

37. Direct sellers in the UK earn $605 a month on average.

(Source: Direct Selling News)

This figure represents an average, which means that while some direct sellers may earn more, others might earn less.

This income often serves as a supplemental revenue stream, which is consistent with the fact that a significant portion of direct sellers in the UK treat direct selling as a side hustle.

Direct selling allows flexible working hours, making it a popular choice for those seeking to balance it with other responsibilities.

The UK’s direct selling landscape predominantly comprises women, with 96% of the workforce being female. This demographic dominance speaks to the appeal of direct selling within these communities, offering opportunities adaptable to diverse lifestyles.

38. In the UK direct selling industry, about 500,000 people work as independent direct sellers.

(Source: Direct Selling News)

The direct selling industry in the UK encompasses a significant population of entrepreneurs. This sector thrives on flexibility and accommodates your schedule, enabling you to manage your business alongside other commitments.

The evenings, mainly after 7 p.m., have emerged as the preferred working hours. However, many direct sellers also operate between 9 a.m. and 2:30 p.m. The choice of working hours illustrates the industry’s inherent flexibility.

From this role, you can expect a career path that adapts to your lifestyle while providing a potential financial boost.

The direct selling industry in the UK is tailored to fit around your life, giving you control over when and how you work.

39. 64% of the direct sellers work for a side hustle.

In the network marketing and multilevel marketing (MLM) landscape, many individuals are engaged in direct selling on the side.

This is a considerable proportion, indicating a diverse demographic partaking in MLM opportunities for various reasons, such as supplementing their income.

Your involvement might be similar to that of most direct sellers who choose MLM to financially support themselves beyond primary employment. It is essential to understand that this does not typically represent a full-time career but rather a supplemental activity.

Final Thoughts on Network Marketing and MLM Statistics

As you reflect on the statistics of network marketing and MLM, remember that this industry’s growth is evident. In 2020, the network marketing industry’s worldwide retail sales exceeded $194 billion, highlighting its expansive potential.

Your chances of profiting from MLM, however, hinge on various factors. Roughly 25% of MLM participants make a profit, indicating that success requires dedication and strategy.

The industry demonstrates a clear gender trend, with women comprising 75% of direct-selling participants in the US. While less represented, men still play a vital role in the industry.

Growth forecasts suggest that the global multi-level marketing software market will expand at an 8.3% CAGR between 2021 and 2029. This implies that technological advancements will increasingly shape the industry’s future.

As you navigate network marketing, stay informed and approach opportunities optimistically and practically. Your success can align with the industry’s growth if driven by informed choices and persistent effort.