While the MLM industry generates staggering global revenues in the hundreds of billions, the vast majority of participants face a starkly different reality of financial loss and rapid turnover.
Key Takeaways
- The global direct selling industry, predominantly MLM, reached $167.7 billion in retail sales in 2022
- US MLM sales totaled $35.5 billion in 2022, representing 21% of global direct sales
- Wellness products accounted for 65.4% of MLM global sales in 2022 at $109.8 billion
- Amway reported $8.1 billion worldwide sales in 2022
- Herbalife achieved $5.2 billion revenue in 2022
- Nu Skin Enterprises posted $2.1 billion sales in 2022
- Total active US MLM distributors numbered 15.6 million in 2022
- Global MLM active distributors: 124 million full-time equivalent in 2022
- US MLM sees 40% annual turnover rate among distributors
- 74% of MLM participants are women in the US
- Average age of MLM distributors in US is 42 years old
- 56% of US MLM participants have some college education
- 28% of US MLM distributors earn under $500 annually
- Median annual income for US MLM distributors is $5,300 before expenses
- Only 1% of MLM distributors earn over $100,000 annually
MLM sales are huge globally, but most distributors lose money quickly.
Attrition;,
- 77% of distributors quit within first year
- Lifetime attrition rate in MLM exceeds 99%
- Average distributor lifespan in MLM is 4.5 months
- 50% of new MLM recruits drop out within 90 days
- Amway distributor retention rate 20% after one year
- Herbalife sees 80% annual churn rate
- MLM industry-wide first-year dropout 75-90%
- Rodan+Fields 90% distributor attrition in year one
- It Works! Global 85% quit rate annually
- Average MLM company loses 60% distributors quarterly
Attrition;, Interpretation
These figures reveal that MLMs are essentially a high-turnover talent show where the only consistent prize is the slow but certain realization that you've been cast as the audience.
Company Revenue;,
- Amway reported $8.1 billion worldwide sales in 2022
- Herbalife achieved $5.2 billion revenue in 2022
- Nu Skin Enterprises posted $2.1 billion sales in 2022
- USANA Health Sciences recorded $921 million revenue 2022
- Avon Products generated $2.8 billion in direct sales 2022
- Mary Kay Cosmetics sales hit $3.7 billion globally 2022
- Tupperware Brands revenue was $1.3 billion in 2022
- Primerica reported $2.8 billion revenue from MLM structure 2022
- Forever Living Products achieved $4.9 billion sales 2022
- Oriflame Holding AG sales totaled $1.5 billion in 2022
- Vorwerk Group revenue reached $3.2 billion 2022
- Infinitus reported $6.8 billion sales in China 2022
- Perfect China sales exceeded $2.5 billion 2022
- New Era Health Industry Group $2.9 billion revenue 2022
- GNC Holdings MLM partnerships contributed $1.2 billion 2022
- Young Living Essential Oils $2.0 billion sales 2022
- doTERRA $1.8 billion revenue 2022
- Arbonne International $500 million sales 2022
- Isagenix International $800 million revenue 2022
- Thirty-One Gifts $400 million sales 2022
- Scentsy $600 million revenue 2022
- Pampered Chef $450 million sales 2022
- It Works! Global $700 million revenue 2022
- Rodan + Fields $900 million sales 2022
Company Revenue;, Interpretation
That's over $55 billion collectively proving the real product these companies sell isn't supplements or skincare, but the intoxicating dream of easy money to an army of hopeful distributors.
Complaints
- EU consumer complaints on MLM up 30% post-COVID
Complaints Interpretation
It appears the post-pandemic surge in get-rich-quick dreams has come with a 30% spike in the harsh reality of consumer complaints.
Complaints;,
- 1,200 MLM complaints to BBB annually average
- AARP survey: 25% of seniors targeted by MLM scams
- Consumer Affairs logged 15,000 MLM reviews with 2.1/5 avg rating
- 40% of MLM participants report financial losses to FTC
Complaints;, Interpretation
If these numbers were a party invitation, it would read: "Join the fun, where one in four seniors gets targeted, nearly half the guests leave poorer, and the collective review is a resounding 'meh' at best."
Earnings;,
- 28% of US MLM distributors earn under $500 annually
- Median annual income for US MLM distributors is $5,300 before expenses
- Only 1% of MLM distributors earn over $100,000 annually
- 99% of MLM participants lose money after expenses
- Average MLM distributor recruits only 2.5 downline members
- Top 1% of Amway distributors earn 70% of total commissions
- Herbalife average monthly distributor income $700 gross
- 73% of LuLaRoe distributors earned no profit in first year
- MLM participants spend average $1,200 annually on products/inventory
- Only 0.4% of MLM distributors achieve 'diamond' level status
- Net loss for 89% of US MLM participants per IRS data
- Average hourly wage equivalent for MLM work is $2.75 after expenses
Earnings;, Interpretation
This data illustrates that an MLM is a casino disguised as a job, where the house always wins and the average "player" would earn more per hour babysitting a cactus.
Legal;,
- FTC received 3,000+ MLM complaints in 2022
- 17 US states regulate MLM as potential pyramids
- Herbalife paid $200 million FTC settlement in 2016
- LuLaRoe settled FTC case for $4.75 million in 2022
- Amway fined $56 million in India pyramid probe 2019
- 400+ MLM lawsuits filed in US 2010-2020
- SEC charged MLM promoter with $200 million fraud 2021
- China banned 98 MLM companies since 2016
- FTC pyramid scheme enforcements rose 25% 2020-2022
Legal;, Interpretation
Despite the industry's relentless cheerleading about 'dreams' and 'opportunity,' the hard numbers from regulators tell a far more sobering story of widespread complaints, legal crackdowns, and staggering settlements.
Market Size;,
- The global direct selling industry, predominantly MLM, reached $167.7 billion in retail sales in 2022
- US MLM sales totaled $35.5 billion in 2022, representing 21% of global direct sales
- Wellness products accounted for 65.4% of MLM global sales in 2022 at $109.8 billion
- Asia-Pacific region generated 46.2% of global MLM sales in 2022 amounting to $77.5 billion
- Number of MLM distributors worldwide exceeded 180 million in 2022
- MLM market projected to grow at 4.5% CAGR from 2023-2030 reaching $243 billion globally
- Beauty and personal care MLM segment valued at $45.2 billion in 2022
- North America MLM sales hit $40.2 billion in 2021
- Household goods MLM sales reached $18.9 billion globally in 2022
- Latin America contributed $22.4 billion to MLM sales in 2022
- Europe MLM market size was $28.6 billion in 2022
- Clothing and accessories MLM sales totaled $9.7 billion in 2022
- MLM industry in China generated over $40 billion in 2021
- India MLM market valued at $4.5 billion in 2022 with 8 million distributors
- South Korea MLM sales exceeded $15 billion in 2022
- Brazil MLM industry reached $3.2 billion in sales 2022
- Australia MLM sales totaled $1.1 billion AUD in 2022
- MLM digital sales grew 15% to $25 billion globally in 2022
- Sustainable products in MLM reached $12.4 billion in 2022 sales
- Top 100 MLM companies generated $47.8 billion combined in 2022
Market Size;, Interpretation
The numbers are staggering—$167.7 billion strong, built by over 180 million hopefuls—yet the sobering truth is that this global wellness-fueled frenzy enriches the few at the top far more reliably than it does the vast, optimistic army peddling its products.
Participant Demographics;,
- 74% of MLM participants are women in the US
- Average age of MLM distributors in US is 42 years old
- 56% of US MLM participants have some college education
- In India, 85% of MLM distributors are from rural areas
- 65% of MLM participants join via friends or family referrals
- African American women represent 12% of US MLM distributors despite 7% population share
- Hispanic/Latino MLM participation rate 18% in US
Participant Demographics;, Interpretation
The MLM world is a tapestry woven from the social ties of middle-aged women, where ambition is often inherited from a friend's pitch and the American Dream is sold door-to-door by a surprisingly well-educated yet disproportionately targeted population.
Participant Numbers;,
- Total active US MLM distributors numbered 15.6 million in 2022
- Global MLM active distributors: 124 million full-time equivalent in 2022
- US MLM sees 40% annual turnover rate among distributors
Participant Numbers;, Interpretation
Nearly a third of America seems to be selling vitamins to the other two-thirds, in a global game of musical chairs where 40% of the players trip over their own inventory each year.
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