Written by: Dorothy M. Neddermeyer, Ph.D., Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
With the major shift in the economy it is projected that the solopreneurship trend is expected to continue growing, with a projected 42 million self-employed individuals in the U.S. by 2026 [Statista] The rise of the gig economy, advances in technology, and changing attitudes toward work are all contributing factors to the growth of solopreneurship.
Are you curious about the success of multi-level marketing millionaires? Have you wondered what statistics are behind the booming multi-level marketing business plan? In this article, I will reveal multi-level marketing eye opening facts and figures.
Although the majority of people believe they know the facts about Multi-level Marketing (MLM) the majority of people receive the information from either friends, family or acquaintances. However, for one to know about the minute details is a farfetched assumption. For instance, do you know the top distributor with Amway made approximately $12 million in a year. Or do you know the first marketing model to have incorporated multi-level marketing was Avon. Avon, an MLM company, was established in 1886 by David H. McConnell and headquartered in London, United Kingdom. McConnell's first product was a gift box of 5 different flower fragrance perfumes. McConnell developed the fragrances himself single handedly in his kitchen. The second MLM company was Amway in 1959 Jay Van Andel co-founded Amway Corp with his good friend and business partner, Rich DeVos. As a lifelong advocate of free enterprise both Van Andel and DeVos launched Amway, a business model fueled by the power of relationships. The first product—Liquid Organic Cleaner or L.O.C. ™—was one of the first biodegradable and environmentally conscious cleaning products, as Amway founders commitment to excellence continues. Their flagship product is still being sold today.
Now that you know that a MLM business has been in existence longer than anyone reading this, I will begin with how many people make over $100,000 a year through Multi-level Marketing, the first-year attrition rates for those in an MLM business, total number of participants worldwide and more.
Important statistics
82% of women making over $100,000 a year do it through multilevel marketing
No way, you say.
This statistic is a powerful testament to the potential of MLM as a lucrative business decision for women. It attests that with dedication and effort, women can make a substantial income through MLM marketing. Furthermore, this statistic is an example of the success that can be achieved through MLM marketing, and it serves as an inspiring reminder that anyone can become a millionaire through the MLM business model.
The first-year attrition rate for multi-level marketing ranges from 50-80%
The high first-year attrition rates for MLM is a reminder that dedication and perseverance to achieve success in this field is no different than any start-up.
Approximately 10% of startups fail within the first year. According to the United States Bureau of Labor Statistics. The startup failure rate increases over time, and the most significant percentage of businesses that fail are younger than 10 years. Over the long run, 90% of startups fail. Which is significantly higher than the MLM marketing failure rate. However, it is the MLM start-up business model that is held as the black-eye of business start-ups. Disparaging and denigrating without merit, wouldn't you say?
One of the reasons MLM business owners have a higher rate of attrition the first year than a traditional start-up or kitchen table startup is because an MLM model is often compared to a Pyramid scheme a.k.a. Ponzi scheme. Therefore, people are reluctant to be involved. “I’ll be the laughing stock of my family and friends.”
Multi-level Marketing, a.k.a. Network marketing and a Pyramid/Ponzi scheme has only one similarity between the two business models. They both are a person to person business model. Pyramid/Ponzi scheme does not have a product or service. The business model is individuals who pay for the opportunity to promote an exchange of money... there isn't a product or service. The most recent high profile Pyramid/ Ponzi scheme was executed by Bernard (Bernie) Madoff an American financier who masterminded the largest Ponzi scheme in history, worth about $64.8 billion. He was at one time chairman of the Nasdaq stock exchange.
Subsequently, Madoff decided he could promote an investment idea, whereby he would provide superior investment strategies that would yield higher returns, no matter what the NYSE, i.e., New York Stock Exchange; NASDAQ, i.e., the Nasdaq Stock Market, and the Chicago Stock Exchange were yielding. Madoff's plan required people to keep their investment in the market for a period of time he designated. For a long time, Madoff invested the money. Because the high yield he set was above the trending market it was difficult to maintain the above market payout as people decided to take their original investment money out. Therefore, in order to cover the shortfall, Madoff needed to convince current investors to invest more or new investors to invest. This became more difficult to manage. Therein lies Madoff’s decision to resort to a Ponzi scheme. Madoff’s Ponzi scheme defrauded thousands of investors out of tens of billions of dollars over the course of at least 17 years, possibly longer.
Lastly, one other false perception that is repeated by the MLM business model naysayers, “people lose money”. That fact is no different than any startup or major corporation. In 2022, there were 13,125 cases of business bankruptcies filed nationwide in the United States. The number of business bankruptcies in the United States has been in decline, reaching a peak in 2009. A clear case of the kettle calling the pot black.
Multi-level marketing/network marketing has a favorable record of providing excellent products or services. The products or services are of superior quality than retail buying, such as membership clubs and wholesale outlets.
Multi-level marketing millionaire statistics
The average work hours for MLM sums up to 13.3 hours per week. Approximately 116 million people around the world are involved in multi-level marketing as their full-time income. Another 42.9 million consider their MLM business as part-time for income in addition to their 8-5 job.
Approximately one in every 545 U.S. citizens receives income from multi-level marketing
This statistic is a testament to the size and scope of the MLM industry. It reveals that MLM is a global phenomenon, with millions of people around the world taking part in it. This statistic is a powerful reminder that MLM is a viable and lucrative business opportunity. Furthermore, it is testimony that it is possible to become a millionaire through multi-level marketing.
There are 36 million multi-level marketing millionaires around the world
This statistic is a powerful testament to the potential of MLM as a viable source of income. It shows that, despite the challenges and diligent work associated with the industry, it is possible to achieve financial success through an MLM. This statistic is a reminder that, with the right strategies and dedication, anyone can become a MLM millionaire.
This statistic is a powerful indicator of the potential of MLM to generate income. It shows that, even in a country as large as the U.S., a significant number of people are able to make a living with the MLM business model. This statistic is a testament to the success of MLM and the potential it has to create millionaires.
68% of multi-level marketers are women
This statistic is significant in the context of Multi-level Marketing Millionaires Statistics because it highlights the fact that women are increasingly becoming successful in the multi-level marketing industry. It shows that women are not only capable of achieving success in the MLM business model, it reveals that they are also actively pursuing it. This statistic is a testament to the fact that women are increasingly becoming empowered to take control of their financial futures and are achieving success in the multi-level marketing business model.
Multi-level marketers who have been in the industry for over 5 years make an average of $110,000 per year.
This statistic is a testament to the potential of MLM as a wealth path. It shows that with dedication and diligent work, it is possible to make a substantial income over the long-term. This statistic is a great example of the success that can be achieved in MLM, and it serves as an inspiration to those who are considering or starting out as an MLM business model.
14% of multi-level marketers have been in the business for 3-4 years
This statistic is a telling indication of the potential longevity of MLM. It suggests that those who have been in the business for 3-4 years have found success and are continuing to reap the rewards of their work. Does your 8 to 5 job have this potential? This statistic is a testament to the fact that MLM is a viable and rewarding wealth path for those who are willing to step out of their comfort zone.
People aged 35-44 years old make up the largest demographic of multi-level marketers, comprising 30% of the market
This statistic is significant in the context of a blog post about Multi-Level Marketing Millionaires Statistics because it highlights the potential of this age group to become successful in the MLM business model. It suggests that those aged 35-44 have the highest chance of achieving millionaire status. The MLM business model is an ideal target audience for those looking to get involved. Furthermore, it indicates that this age group is the most likely to have the resources and experience necessary to make it in the world of multi-level marketing.
Direct selling companies generated over $3.9 billion in retail sales in the U.S. in 2019
This statistic is a testament to the success of MLM companies in the U.S. in 2019. It shows that these companies have been able to generate a significant amount of retail sales, which is a clear indication of their success and the potential for multi-level marketing millionaires.
Direct selling companies generated over $42.7 billion in retail sales and 7.3 million new entrepreneurs in the U.S. in 2021
This increase of $38.8 billion in sales in two years is a loud and clear indication of the success of MLM and the resourcefulness of 7.3 million people who engaged in a MLM business during a major negative upheaval in the U.S. sickness care industry. When many people were laid off, furloughed or lost their jobs.
What drives the success of multi-level marketing companies?
Success in MLM comes from treating it like any other business in which you focus on the people who want what you have to offer. That means deciding who the target market is for your products/services, as well as the business opportunity.
79% of people believe that attending events makes them more engaged with their product or business.
This statistic is a powerful indicator of the effectiveness of events in engaging people with a product or business. It suggests that events are an invaluable tool for multi-level marketing millionaires to reach out to potential customers and build relationships with them. This statistic is a testament to the power of events in creating a strong connection between a business and its customers, and it is an important factor to consider when planning a successful MLM strategy.
Multi-level marketers aged 18-23 represent 8% of the entire industry
This statistic is significant in the context of Multi-level Marketing Millionaires Statistics because it highlights the potential of young people to become successful in the MLM business model. It shows that even those who are starting out in their careers can make a name for themselves in MLM and become millionaires. This statistic is a testament to the power of ambition and diligent work, and serves as an inspiration to those who are starting out in the MLM business model.
Conclusion
Multi-level marketing is a lucrative business opportunity that has seen tremendous growth over the past few years.
With 82% of women making over $100,000 annually through multi-level marketing and 36 million millionaires around the world, it’s clear the reason many people are drawn to become entrepreneurs in the MLM industry.
Despite high first-year attrition rates ranging from 50-80%, there are still 116 million people involved in MLM worldwide with approximately one in every 545 US citizens receiving income from it.
If an MLM venture wasn't successful transitioning from an unsuccessful MLM business to be a successful solopreneur is not guaranteed. Success in business is complex and multifaceted. The reasons for the lack of success in the MLM business needs to be carefully analyzed, and lessons learned need to be applied to the new venture. Additionally, seeking advice from mentors, business coaches, or industry experts can provide valuable insights and guidance.
Ultimately, success as a solopreneur will depend on the individual's ability to adapt quickly, learn, and apply their experiences to a new business venture, as well as their dedication to building a sustainable and ethical business model.
Overall sales within MLM have grown significantly since 2013 and Asia-Pacific accounts for 44% of global total sales. Mahhy people who have been in the industry for more than five years make an average of $110,000 per year while only 3% reach top tier compensation structures.
The U.S., which makes up 20% of global market share, generated over $3 billion dollars in retail sales alone in 2021; customers also received nearly 25 billion dollars worth of commissions via MLM during 2019 as well.
In 2020 33 percent operated part time while 14 percent had been working at their company between three and four years – 35 to 44 year olds made up 30 percent overall demographic wise – 79 percent believe attending events increases engagement with product or business – 8 % were aged 18–23 – 1 % was annual growth rate globally.
It’s evident that despite its challenges such as high attrition rate and low success percentage among those reaching higher tiers on their companies’ compensation structure like these can be incredibly rewarding both financially but also personally when done right. However, that is the case with any start-up or small business. If you are averse to earning more than an 8 to 5 job or becoming a 6 or 7 figure income per month earner, an MLM business isn't for you. Having a second income of $1,000+ per month might be the best scenario for you. Nothing wrong with either goal.
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Dorothy M. Neddermeyer, Ph.D., Executive Contributor Brainz Magazine
Dorothy M. Neddermeyer, Ph.D. is a successful influencer in the public and private sectors, as a consultant, coach, and keynote speaker. She has 30 plus years of global experience in leadership development, behavioral change, and enhancing human potential ‒ i.e. you can achieve more than you think. Dr. Dorothy is passionate about developing great leaders. She works with senior and emerging executives to amplify their leadership skills and drive viable/sustainable organizations with relevant, adaptable, centered, and authentic skills. Her areas of expertise are:
Leadership/Sales Development
Behavioral Change
Business Strategy
Communication Skills
Diversity Coaching
C-Suite, Senior, and High Potential
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