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By Jeffrey A. Babener - Updated June 2016
Hard Facts About a Growing Industry
MLM: AN OVERVIEW OF AN EXCITING INDUSTRY
MLM consultant practice tips: The following tips are geared to help answer quick questions that are often asked by MLM companies. To summarize, in the MLM startup company, MLM sales tax issues must be addressed to avoid liability for taxes and penalties. Nexus for MLM Sales and Use Tax represents a unique analysis that involves activity by distributors in promoting, recruiting and training in a state. MLMLegal.com and Babener and Associates provides expert MLM consulting advise on MLM corporate, MLM software, MLM compensation, MLM taxes, and much more. MLM consulting is an important component for MLM startup. Careful choice of MLM software is another component of MLM corporate development. A qualified MLM consultant and MLM lawyer is a vital part of the MLM startup team. MLM compensation must be reviewed by a MLM consulting and by a qualified, experienced MLM attorney.
Proper MLM capitalization (funding) is essential to the MLM startup and MLM corporate business. The need for capital is in inverse proportion to the ability of the MLM company to recruit key distributors. MLMLegal.com and Babener and Associates provides expert MLM Consulting advice on how to start and run a direct selling company.
Excerpted from the book Network Marketing: What You Should Know book, Jeffrey Babener, Legaline Publications.
20.2 million people were involved in direct selling in 2015 alone.
Every week, more than 55,000 people in the United States alone sign up as network marketers - 150,000 per week worldwide.
In excess of 103 million people globally are distributors for network marketing companies.
In the United States, sales in the network marketing industry are in the $36.12 billion range. 2015 revenues were higher than any other year in history.
27 percent of direct sellers report making $1,000 in the last 12 months of work. 51 percent report making between $1,000-$49,999. 15 percent make $50,000 or more.
77.4 percent of all network marketing distributors are women. Men account for 22.6 percent. (These numbers likely reflect the demographics of long-dominant companies like Avon and Mary Kay. Recent growth in the industry has been among newer companies that have a more even balance between male and female distributors.)
Approximately 93.9 percent of networkers are part-time and 6.1 percent full-time people who work 30 hours a week or more in their business. For the vast majority of networkers, it is a "second job," with the hope of $300 to $500 per month in auxiliary income.
93 percent of direct sellers report earning income in the last 12 months. Seven in ten customers of direct selling report having a positive experience.
The most popular products sold through direct selling fall into the wellness category at 30.1 percent. Services and “other” sell at the second highest rate at 23.1 percent.
About 10.8 percent of direct marketers are African-American; almost 19.9 percent are Latinos; 4.9 percent are Asians; and about 0.6 percent are Native Americans.
Approximately 20.5 percent of distributors are between ages 25 and 34. Another 24.9 percent fall into the 44 to 54 age bracket. Seniors over the age of 65 account for about 4.9 percent of direct sellers. The largest group of direct sellers are between the ages of 35 and 44 at 28.2 percent.
71.5 percent of all products sold through direct selling are sold through the individual/person-to-person sales strategy.
Other Pages of Interest
The library is full of articles, case studies, statutes and other material useful as a resource to those interested in network marketing. This index is designed to help you find information on a category-specific basis.read more »
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