Network Marketing by the Numbers

27 Network Marketing Statistics You Need To Know

Eric Worre, the author of Go Pro: 7 Steps to Becoming a Network Marketing Professional, is well-known in the network marketing industry. 

His book and teachings provide valuable insights and strategies for individuals looking to succeed in network marketing.

Email marketing is one of the most powerful tools any network marketer can use to grow their business.

Let's think of Ryan Holiday, for example. How easy would it be for him to create an empire of network marketing with his 1M+ email subscribers? Or what if Morning Brew would invite its 6M+ readers to join a networking business?

It turns out to be something very showy for email marketers who can join MLM (Multi-Level Marketing) businesses that resonate with them and their audience.

This article will cover the fundamental aspects needed to succeed in MLM and which statistics you should consider before jumping into network marketing. 

Table of Contents

Go Pro or Go Home

Eric Worre wrote one of the most successful books about network marketing. 

He advocates the "Go Pro" mindset in MLM because it underscores the industry's importance of professionalism and commitment.

Going “pro” means treating MLM as a legitimate business and acquiring the skills necessary for success.

Network Marketing by the Numbers

Worre believes that by embracing this mindset, individuals can rise above the misconceptions and challenges that often plague MLM.

It encourages personal development, consistent effort, and focusing on long-term results rather than quick fixes.

By adopting a professional approach, one can build trust with prospects, attract like-minded individuals, and ultimately achieve sustained success in MLM's dynamic and competitive world.

Below are some of the skills and mindset Worre shares with anyone who wants to "Go Pro" in network marketing.

Professionalism: Eric Worre emphasizes the importance of professionalism in network marketing. This includes treating your network marketing business as a legitimate profession. 

In email marketing, professionalism is equally essential. Your professionalism is gained when you are consistent with your message, brand, and value delivery.

Also, this means using professional language, adhering to email marketing regulations (e.g., CAN-SPAM Act), and ensuring that your emails are well-designed and error-free.

Skill Development: Worre encourages network marketers to develop their skills continuously. 

In email marketing, this translates to improving your email copywriting, design, and understanding of email analytics. A skilled email marketer is more likely to create effective campaigns.

Building Relationships: Network marketing is built on relationships, and Worre stresses the importance of building and maintaining solid relationships with your network.

In email marketing, this can be applied by segmenting your email list and sending personalized, relevant content to different segments. Building relationships is the core key of every professional email marketer and any network marketer. 

Connecting with your email subscribers can lead to higher engagement and conversion rates.

Providing Value: Worre advocates giving value to your network rather than just selling. 

This means sending content that educates, entertains, or solves problems for your subscribers. 

Don't just send sales pitches; provide valuable information that your subscribers will find helpful.

Consistency: Consistency is key in network marketing, and it's equally important in email marketing.

Establish a consistent email marketing schedule to keep your audience engaged and expecting your emails.

Follow-Up: Network marketers are often encouraged to follow up with prospects. 

In email marketing, follow-up can be automated through email sequences. Set up automated follow-up emails to nurture leads and encourage conversions.

Leadership: Worre teaches that successful network marketers should strive to become leaders and mentors to their teams.

In email marketing, you can establish yourself as a leader in your industry by sharing valuable insights, expertise, and thought leadership through your email content.

Goal Setting: Worre emphasizes setting clear goals in network marketing. In email marketing, have specific goals for your email campaigns, such as increasing open rates, click-through rates, or conversions, and use analytics to track your progress toward these goals.

Duplication: In network marketing, duplication is teaching your team members to replicate your success.

In email marketing, you can create templates and guidelines for your team to maintain a consistent brand image and messaging in their email campaigns.

Also, it means working with others to increase your word of mouth and get more referrals from them.

While network marketing and email marketing are distinct disciplines, many of the principles taught by Eric Worre can be adapted and applied to email marketing to enhance its effectiveness and professionalism.

The key is to focus on building relationships, providing value, and consistently improving your skills in the email marketing realm.

Network Marketing Statistics You Must Know

Network Marketing by the Numbers

Doing your share is just half the equation to succeed in network marketing. The other half is to know some information about the network marketing industry.

Here is some of the most relevant information you can use to decide if MLM is the right move for you:

  1. Global Industry Size: Network marketing is a thriving multi-billion-dollar industry, boasting staggering annual global sales surpassing $180 billion.

    This substantial economic footprint underscores its significance as a prominent business model worldwide, attracting millions of entrepreneurs seeking opportunities within its expansive ecosystem. One of its top benefits is creating a multinational network and trusting the consistency of the MLM business around the globe.

  2. Number of Network Marketers: The number of network marketers varies by continent, with Asia-Pacific being a hotspot for this industry, hosting over 118 million distributors. In North America, the figure exceeds 21 million, while Europe and South America each have millions of network marketers. Africa is also witnessing growth in this field. 

    The top five countries with the largest network marketing populations are the United States, China, India, Indonesia, and Brazil. These nations not only represent vast markets, but also highlight the global reach and appeal of network marketing as a pathway to entrepreneurship and financial independence.

  3. Direct Selling Companies: Approximately 6,000 direct selling/network marketing companies are globally. You should always consider which company offers the service that resonates more with you. If you believe in the services or products from a network marketing company, you will be more likely to bring others with you.

  4. Top Companies: Out of the 6,000+ networking companies, 10 have been selected as the best and most profitable ones in the last few years: Amway, Market America, Avon, Herbalife, Nu Skin, Infinitus, Vorwerk, Natura, Pharmaex, Coway.

  5. Global Growth: The network marketing industry has experienced consistent global growth over the years, with expansion into emerging markets. The global network marketing industry has experienced consistent growth over the past several years, with an annual growth rate of around 6-8%, which is above average for the industries in the market.

  6. Earnings Potential: The income potential in network marketing varies widely, but only a tiny percentage of distributors earn substantial income. This is one of the big lies of the industry, where they promise that everyone who works hard will become rich.
    MLM business statistics reveal that just 25% of participants manage to turn a profit.
    Among this group, 14% earn less than $5,000, 6% make between $5,000 and $9,999, 3% fall into the $10,000 to $24,000 range, another 3% reach earnings of $25,000 or more, and a mere 0.05% attain incomes exceeding $100,000. The odds of achieving substantial income through MLM are pretty low. 
    That is why you need to “Go Pro” if you really want to make your share.

  7. Success Rates: The success rate in network marketing is often low, with estimates suggesting that only 1-5% of distributors achieve significant financial success.
    Most of the people fail because they want to make MLM their primary income, but that is rarely the case. If you look at it as a side hustle, you will have more chances to win in the long term.

  8. Part-Time Involvement: Many network marketers participate part-time, alongside other jobs or responsibilities. Approximately 500,000 individuals have embraced network marketing as their primary occupation, while 42.9 million see direct selling as a part-time endeavor.
    An expansive workforce of more than 64.9 million operates as independent distributors within the MLM industry. Network marketers dedicate approximately 13.3 hours per week to their business pursuits.

  9. Women in Network Marketing: A significant percentage of network marketers are women, with many network marketing companies targeting female entrepreneurs.
    Do you remember your mom's friend who always had those magazines with her offering products to her friends? Women lead the majority of demography on network marketing. Around 69.9% of people involved in direct selling or network marketing are women.

Network Marketing by the Numbers
  1. Startup Costs: One thing that attracts most people to network marketing is the low-cost entry it has. Joining a network marketing company typically involves an initial investment, which can vary greatly depending on the company and product, but usually is very affordable for almost everyone.
    Any person can become an MLM consultant and start selling regardless of whether or not they have sales experience, as long as you can afford the starter kit, which typically costs $50 to $300.

  2. Retention Rates: Many network marketing companies need help retaining distributors, and the industry faces challenges with attrition.
    This usually happens with network marketing businesses that are just starting or need to offer better compensation plans. In the initial year, at least 50% of MLM representatives tend to discontinue their involvement.


    Within five years, 90% of representatives usually exit the field. By the tenth year, only those positioned near the pinnacle of the hierarchy remain, indicating that approximately 95% of representatives have stepped away from the business.

  3. Product Categories: Network marketing companies sell various products, including health and wellness, cosmetics, supplements, and household goods. Almost every product in the market is used by a network marketing business.

  4. Training and Support: Successful network marketing companies often provide extensive training and support to their distributors. 
    One key indicator of how good an MLM company is the kind of training it offers to its people.

  5. Legal Challenges: The industry has faced legal scrutiny in various countries due to concerns about pyramid schemes and deceptive practices. A good rule of thumb is to research how many years the network marketing company has been in the market. Usually, go for at least 20 years of existence.

  6. Social Media Impact: Social media platforms have become important tools for network marketers to reach a wider audience. Social media has a significant role in driving the growth of network marketing. Up to 72% of marketers who utilize social media to connect with prospects surpass their sales targets by nearly 23%.
    This same percentage outperforms those who do not incorporate social media into their sales strategies. Additionally, 54% of individuals surveyed have successfully closed deals by engaging with prospects on social networks.

Network Marketing by the Numbers
  1. Regulatory Compliance: Network marketing companies must comply with various regulations, such as the Direct Selling Association's Code of Ethics in the United States.
    According to the Federal Trade Commission, at the most basic level, the law requires that an MLM pay compensation based on actual sales to real customers rather than mere wholesale purchases or other payments by its participants.

  2. Compensation Plans: Network marketing companies use various compensation plans, such as binary, unilevel, and matrix structures, to reward distributors. If you want to learn more about the different type of plans and how each work, here is a fantastic article about compensation plans in MLM.

  3. Product Quality: The quality and effectiveness of network marketing products can vary, and some distributors face challenges with product claims. There is no mystery that the best MLM companies worldwide offer the best quality. Without an excellent product, you can't be in this game for a long time.

  4. Online Marketing: Many network marketing companies use online marketing techniques, including websites, blogs, and email marketing, to promote their businesses. However, according to Eric Worre in his book Go Pro, only 1 out of 10 network marketers use online marketing strategies to increase their network.

  5. Income Disclosure Statements: Some network marketing companies provide income disclosure statements to show the earnings potential for distributors at different levels. The Income Disclosure Statement is prepared after a company has been in business for at least nine months to a year.
    That is why the longer the company has been in the market, the more reliable its disclosure statements will be. If a company doesn't provide a disclosure statement, run away.

  6. Skepticism: The industry often faces skepticism and negative perceptions due to the prevalence of scams and unethical practices.
    According to the U.S. Securities and Exchange Commission: "If a program primarily focuses on recruiting others to join the program for a fee, it is likely a pyramid scheme. Be skeptical if you will receive more compensation for recruiting others than for product sales."

  7. Consumer Protections: Some countries have introduced regulations to protect consumers and distributors from fraudulent network marketing schemes.
    This is one of the greatest downfalls of all MLM companies. None of them offer consumer protections. Some big companies, such as Nu Skin, have been in court because of a lack of consumer protections.

  8. International Expansion: Network marketing companies frequently expand into new countries and regions to tap into new markets. 56% of the top 100 MLM companies are U.S.-based, followed by 12% in China. Because of the legal requirements for an MLM to operate in the U.S., they could be easily used in other countries worldwide.

  9. Product Innovation: Companies in the industry continually introduce new products and innovations to attract distributors and customers. MLM companies that don't innovate disappear. On average, a new MLM company is launched every week. These rapid changes create a dynamic field that recreates itself every year.

  10. Entrepreneurial Opportunities: Network marketing provides entrepreneurial opportunities to individuals who may not have access to traditional business resources.
    Robert Kiyosaki feels that "the knowledge one gains by being a part of this industry is nothing short of life transforming. It's not just about investing some money and building a business.
    It's about eliminating personal fears, learning proper skills, and working with different kinds of people to build a thriving organization. No wonder this industry produces millionaires on a consistent basis."

  11. Peer Recommendations: Word-of-mouth marketing and recommendations are significant in network marketing. Indeed, more than 95% of the people who enter MLM do so because someone else brought them.

Network Marketing by the Numbers
  1. Motivation and Personal Development: Many network marketing companies emphasize personal development and motivation as key components of success. Network marketers learn a lot about communication, sales, leadership, planning events, and follow-up. These skills are necessary in every field.

Conclusion

Network marketing has a lot of criticism and a bad rap among certain people. However, millions still believe in the MLM businesses, which users grow daily.

There are important considerations that need to be addressed before jumping on network marketing.

The fusion of network marketing and email marketing emerges as a potent force in today's digital landscape.

By leveraging the personal connections cultivated in network marketing, email marketing gains a trusted platform for reaching potential customers.

Email campaigns can provide valuable product information and exclusive offers to a receptive audience. Simultaneously, email marketing bolsters the network marketer's reach, facilitating seamless communication with a growing network.

Together, they create a dynamic synergy, enhancing brand visibility and fostering genuine relationships.

This combination empowers entrepreneurs to build robust businesses while nurturing a loyal customer base, making it a compelling strategy for those seeking success in the modern marketing realm.

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