What is most important is that a MLM company use its time with its distributors to demonstrate great products and great service.

It has long been recognized that there is high attrition rate among MLM distributors, perhaps as high as 80-90%. The vast majority of MLM consultants are part time and they join and leave for many reasons. The fault is not necessarily with the network marketing company. In fact, a MLM company is competing for the consultant’s time. Companies often compete with the PTA, little league, another part time job, family demands, shifting duties as work, etc.

What is most important is that a MLM company use its time with its distributors to demonstrate great products and great service. Surely, it is important to try to keep distributors active; but if they do go passive, hopefully they will continue to buy products and services in the same fashion as preferred customers. Whether or not that happens is dependent on whether the distributor has truly bonded with the quality of product and service. At that point, MLM companies should take a lead from online sellers such as Amazon to determine what drives customers to continue coming back again and again. And at some point in the future, when the time is right, the passive individual, who has a continuing positive experience, may well be back again as an active distributor.

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The March 2013 issue of Direct Selling News reported early globally figures leading up to the World Federation of Direct Selling Associations’ (WFDSA) General Annual Statistical Survey (being released in June). The WFDSA’s represents more than 60 Direct Selling Associations around the world.

The Direct Selling Association took a look at global numbers in the billions from 2011 and compiled a cover story-worthy list of detailed direct selling data. Readers should reference the Direct Selling News website for a detailed explanation of how these data were collected. Direct Selling News states that the importance of the WFDSA’s statistical information will help direct selling companies determine their plans for international expansion, help get the word out about direct selling (MLM, network marketing and party plan) companies, and will help to have an economic impact in the countries that they influence, especially in countries where they demonstrate the greatest financial impact.

Here we’ve summarized a list of eight relevant (and interesting) direct selling statics about the United States and from around the globe, paraphrased from Direct Selling News:

1)      In 2011, the direct sales industry equated to $153.7 billion dollars in worldwide sales.

2)      Direct selling is best represented by 22 major countries, which reflect 90 percent of direct selling retail sales.

3)      The top five countries benefiting the most from direct selling revenues are (in order of highest achievement) the United States, Japan, China, Korea, and Brazil. These countries alone make up over 60 percent of annual direct sales, globally.

4)      The United States is the number one market for direct selling, equating to $29.9 billion and, and has held 20 percent market share for two years running.

5)      Roughly, “15.6 million direct sellers grew U.S. market sales 4.6 percent and generated $29.9 billion.”

6)      78 percent of direct sellers are women.

7)      96 percent of all compensation plans are multilevel.

8)      Products are of great importance in direct selling. The leading product lines include, “…wellness (24 percent), household goods and durable (20 percent), cosmetics and personal care (18 percent), and clothing and accessories (12 percent).” The remaining 26 percent range anywhere from fuel additives to water filtration systems.

The Direct Selling News article titled “Direct Selling’s Billion Dollar Markets” can be found at http://directsellingnews.com/index.php/view/direct_sellings_billion_dollar_markets6#.UXnru8rLvdQ

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And, as always, visit MLMLegal.com, the best MLM resource on the web. The next Starting and Running the Successful MLM Company Conference will be here before you know it! On May 16^th and 17^th, 2013 we are hosting the MLM Conference for the 25^th year! This is now our 64^th annual conference (held almost consistently three times per year over the last 24 years). All executives/owners of MLM, direct selling, network marking, and party plan companies are welcome to attend. This is the original MLM Startup Conference, hosted and perfected by direct selling industry expert, MLM Attorney Jeff Babener. Call 503-226-6600 or 800-231-2162 to register. (Can’t make this event? Keep an eye out for our October and February conferences as well.)

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