Does it seem like everyone is part of Multi-Level Marketing these days? From clothing to kitchen gadgets to toys to make-up to jewelry to health products to gourmet foods....MLMs are a way doing business that shows no signs of slowing. Here are some stats I've gathered on this modern day trend:
- Network marketing, or multi-level marketing, is one of the fastest-growing business models of the past few decades. Between 1993 and 2003, total direct selling revenues grew by 7.1% annually, dramatically above the rate of growth of the economy -- and of total retail sales (according to the Direct Selling Association).
- The most prominent examples of direct selling companies include Amway, Avon, Mary Kay, Nu Skin, and Herbalife, which recently went public. In 2003, U.S. total direct selling sales totaled more than $29 billion, or almost 1% of the over $3,397 billion for total U.S. retail sales (U.S. Census Bureau).
- 20% of American adults reported they are now (6%) or have been (14%) a direct selling representative -- defined as "the sale of a consumer product or service, person-to-person, away from a fixed retail location." In 2000, 55% of American adults reported having, at some time, purchased goods or services from a direct selling representative.
- In 2002, 79.9% of the direct selling sales force was female. 56% completed only a partial college education, technical or trade school, or have only a high school education.
Source: Lessons from Network Marketing From David Teten & Scott Allen
Check out the Direct Selling Association