The Future of Multi-Level Marketing

Recently, a couple of companies in the MLM industry switched their compensation structure and plan to a model that is more direct sales or affiliate based, dropping the team based payments by the wayside in favor of the majority of the company salesforce that wasn't team building as a part of their daily or weekly business.

This has had quite a few people ask me about what I think about the industry as a whole and where it's going.

Let's start with this fact. TWO companies made a change.

There are thousands of direct sales, network marketing and multi-level marketing companies out there.

This means that less than a tenth of a percent of companies made this switch.

MANY companies quickly released statements or made announcements during their summer company convention that they are keeping the MLM model.

So now, let's check in on some facts* on the industry as a whole.

• Global Market Size: The global MLM market was valued at $201 billion in 2022 and is expected to grow to $329 billion by 2030, with a compound annual growth rate (CAGR) of 6.5%. This growth is driven by increased demand for health, wellness, and personal care products (Zion Market Research).
• Revenue Leadership: The United States leads the global MLM market with $40.2 billion in direct sales as of 2022, reflecting the significant role of MLM in the U.S. economy (TrueList).
• Job Creation: MLM provides a significant source of income for millions of people worldwide. In the U.S., Avon, one of the largest MLM companies, has a direct salesforce of 6.4 million people, followed by Herbalife with 4.5 million participants (TrueList).
• Part-Time Opportunity: A survey revealed that 83.87% of people consider direct selling a good part-time work opportunity, allowing them to supplement their income while maintaining flexibility (TrueList).
• Female Empowerment: Women dominate the MLM industry, comprising 75% of all direct sellers in the U.S. This shows the industry's role in empowering women by providing them with income opportunities (TrueList).
• Technological Advancements: The MLM software market is projected to grow at a CAGR of 8.3% from 2021 to 2029, reflecting the increasing use of technology to enhance sales management and expand market reach (TrueList).
• Health & Wellness Focus: The health and wellness segment, which includes products like nutritional supplements and personal care items, accounted for 34% of the MLM industry's revenue in 2020, highlighting the sector's alignment with global health trends (TrueList).
• Positive Revenue Growth: Approximately 68% of the top 100 network marketing companies recorded positive revenue growth in recent years, demonstrating the resilience and profitability of the MLM business model (TrueList).
• Global Reach: Asia-Pacific is expected to remain the leading region in the global MLM market, driven by rising consumer demand for personalized health and beauty products. This regional strength underscores the global appeal of MLM (Zion Market Research).
• High Earnings Potential: Amway, one of the top MLM companies, reported a revenue of $8.8 billion in 2023, underscoring the potential for significant earnings in this industry. Amway's diverse product portfolio contributes to its sustained success (TrueList) (Epixel MLM Software).

As you can see, the industry is projected to continue to grow in many areas, and has a global economic impact.

*Facts were compiled using ChatGPT and sites were checked for veracity of information.