Network Marketing Statistics 2021- MLM Statistics

When we take a serious look at network marketing statistics 2020 the results look rather grim. Though some organisations show better outcomes than others, industry-wide 97% of all people engaged in network marketing fail to earn a profit. So this leaves a tiny 3% of all the people ever engaging in such an opportunity who make any money.

I don’t want to scare you off if your someone who is looking for or just started a network marketing opportunity. Yes, there is a 97% probability you might fail, but if you endure becoming part of the 3% the income potential can be tremendous. Sceptics of the network marketing business model would say that these network marketing statistics are proving that the business model does not work. But if you compare the actions of those who fail in this industry to those who succeed you might come to a different conclusion.

Generally speaking, the 97% group who eventually fail to become successful in this industry, do so because one of the following two reasons. A huge group of people who get into this business commenced under the false impression that network marketing is a way of getting rich quick and easy. Fascinated by hyped-up sales pitches and overvalued e-books, signing up for a business opportunity and then sit back and expect without taking any action at all, expecting cash to roll into their bank accounts. Sooner or later these people drop out, oftentimes calling whatever they enrolled in a scam and being sceptic about network marketing in general.

Another part of the 97% group of these network marketing statistics are often very motivated and strive hard but still fail because of the lack of knowledge and skills. Because of the competitive nature of this industry, if you work an antiquated or inefficient business model it is also very dubious you will succeed. Ultimately many quit out of disappointment questioning why this does not work for them.

Now for the good news! This means that there is not just a 3% chance for you to succeed, but you determine your own statistics. It is not that 3% is the total pie we all have to strive for, and 97% will automatically be out of chance. If most people commencing in this business would be highly motivated and take the required actions using successful strategies, these network marketing statistics would be drastically different.

So how do you become part of the 3% group, or the group that I would like to see grow much more significant? My first suggestion is education! learn, learn, learn, read, watch and hear to the people who are being successful. Spend time in educating yourself before investing in anything else. And you need to enjoy this business opportunity, it is very hard to motivate yourself if the things you need to take are things you do not like doing.

So let’s all work on making these network marketing statistics come out better and better in the future, it would be a great thing for the industry and everybody involved!

Evolution of Multi-Level Marketing Business Model

Evolution of Network Marketing

The origin of MLM business is discussed, however, the most accepted theory is that it first commenced with the establishment of Avon in the USA during the year 1886.

By 1990, there were 25% of the Direct Selling Association (DSA) members accepting the MLM business model. It increased to 77.3% in 1999, and by 2009, 94.6% of DSA members were using MLM. (Source: Wikipedia )

The top Network Marketing companies, such as Tupperware, Kirby, and Avon, were all basically single-level marketing companies. Later, they started the multi-level marketing business model and became MLM.

Currently, over 1,000 firms are practicing multi-level marketing in the United States alone.

Growth of Network Marketing Business in 2021 — MLM Statistics to Look At

  • 1. MLM industry is operable in more than 100+ countries, and it is one of the largest industries to stay profitable. Now, the MLM industry is estimated at around 168 billion USD, which is supposed to reach around INR 645 billion by 2025.
  • 2. MLM Business Sales Statistics: The top MLM markets existing globally are — USA, China, and Korea. With the USA reporting the highest sale of 20%, China 19%, and Korea 9%.
  • 3. In the year 2015–2016, India’s rank in the MLM industry increased from 22nd to 20th rank.
  • 4. During the year 2015–2016, the MLM industry achieved a new record of more than $183 billion in retail sales globally. This huge number made 80% of the countries across the globe to enrol the MLM industry.
  • 5. The global average sales of each participant are about $1,800 per participant per year or about INR10,000 per month, whereas, in India, it is supposed to be about $300 per year, that is, INR20,000. This is because the networking business is generally less accepted in India.

However, things are changing. Stats show that Network Marketing Business has affected 50,000 people in India.

Explore more to find out the Growth of Network Marketing in India 2021

This credit goes to the various government schemes that have attributed to the growth of referral marketing in India. Some of those projects are Make in India, Skill India, Digital India, and more.

  • 6. Global sales were made by 118.4 million independent representatives, which is an improvement of 1.6% from 2017. This proves that the salesforce has grown at a three-year compound annual growth rate of 4.2% from 2015–2018.
  • Of this total workforce,

10.4 million are full-time, who dedicate more than 30 hours weekly

42.9 million are part-time, who dedicate up to 30 hours weekly

64.9 million others have registered recently, or desire to purchase the product at a discount, or have registered but were never active

  • 7. Out of all participants, 74% of them are women, and the remaining 26% are men.
  • 8. The number of both men and women joining MLM has developed over the year. It has enabled countless female entrepreneurs around the globe.

Winding Up

The above mentioned Network Marketing Statistics ( MLM Statistics) shows that the MLM industry is going to see massive success in the upcoming years. After all, the estimation shows that the MLM business is going to reach around $160.3 billion in 2021. Network marketing would be a great thing for the industry and everybody involved!

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