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Hard Facts and Statistics about the Direct Selling Industry – Updated for 2015

Charity — Tue, 07 Jun 2016 19:38:31 +0000

The Direct Selling Association released the MLM statistics for direct sellers for 2015. The numbers are riveting:

2 million people were involved in direct selling in the U.S. during 2015.
Those people sold an estimated $36.12 billion dollars in retail sales, an increase of 4.8% from 2014.
2015 revenues were higher than any other year in history.

In 2014, 18.2 million people were involved in direct selling. In 2015, that number increased by 11% to 20.2 billion people. Of those people, 28.2% were between the ages of 35 and 44. 24.9% were between the ages of 44 and 54. 20.5% of those involved were between the ages of 25 and 34. Women represent 77.4% of participates, while men represent 22.6% in 2015.

The direct selling industry continues to grow. In 2014, U.S. retail sales were $34.47 billion, and in 2015, that number increased by 4.8% to $36.12 billion. The highest sales in product group belongs to wellness products, at 12 billion dollars in 2015, around 10 billion in 2014, and roughly 9 billion in 2013. Services were the second major group of products sold with roughly 8 billion in 2015.

Geographically, the South held the highest sales at 35.7%. The West held 26.2%. The Midwest held 20.3% and the Northeast 17.5%.

Read the detailed charts for yourself at the DSA’s website.

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World Federation of Direct Selling Associations released global direct selling statistics for 2014

Charity — Tue, 23 Jun 2015 17:25:17 +0000

The largest direct sales markets globally include the United States (19% of global sales), followed by China (17% of global sales), Japan (9% of global sales), Korea (9% of global sales), and Brazil (7% of global sales), totaling just over 60% of global sales.

To summarize some of the statistics, the number of direct sellers rose globally to 100 million, up 3.4% from 2013.

Independent business owners worldwide join the direct selling salesforce for many reasons; to earn extra part-time income at home, to learn new skills and build self-esteem, to fight for a social cause, and to make new friends. The press release reports that most independent distributors started out as customers, and in many cases, joined the opportunity to receive a discount on products, not necessarily to sell to others.

Industry retail sales hit record highs, the press release reports, saying, “Retail sales rose 6.4% to US$182.8 billion in 2014. So the steady growth curve in Direct Selling continues, now with a 3-year compound annual growth rate of 6.5% for the period from 2011-2014.”

Read the full press release.

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Common Questions from MLM Executives: What do I do with distributors who go passive?

Charity — Fri, 18 Oct 2013 18:17:30 +0000

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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