MLM

MLM Statistics for 2020

1. About one in 13 adults have participated in multilevel marketing (MLM).
2. There are about 6.2 million Americans actively involved in “direct selling.”
3. The MLM industry grossed $35.4 billion in 2018.
4. As of 2009, 94.2% of Direct Sellers Association (DSA) members use MLM.
5. Wellness and cosmetics/personal care are the top direct selling categories.
6. 52% of MLM participants say the company’s representation of making a profit is “not too accurate” or “not at all accurate.”
7. At least 50% of MLM participants drop out after one year.
8. It costs an estimated $25,000 to launch an MLM business.
9. 66% of MLM participants invest less than $1,000.
10. Only 25% of MLM participants turn a profit.

Multi-Level Marketing (MLM) is a marketing strategy that uses representatives to sell products or services directly to their peers, or to recruit new representatives to act as salespeople for products or services. You’ve probably heard of MLM, also referred to as direct sales or network marketing, even if you didn’t realize it at the time.

You may have heard of MLM described interchangeably with a pyramid scheme. However, MLM is not illegal on its face. As long as MLM is driven by sales, not by the recruitment of individuals, it is legal and more common than you might expect.

While MLM has frequently been portrayed in the media as get-rich-quick scams that prey on the innocent and unsuspecting, there are many, many participants in MLM and it has grown into a multi-billion dollar industry.

Do people actually make money in MLM? What is the actual likelihood of success? Here, we’ve compiled some of the most important MLM statistics for 2020 that will answer these questions and more.

MLM Statistics

1. About one in 13 American adults have participated in multilevel marketing (MLM).

One of the most surprising MLM statistics out there may be how common it is: Nearly 8% of Americans have participated in multilevel marketing in some capacity. Just because no one in your neighborhood has tried to sell a company’s product to you directly doesn’t mean it isn’t happening.

2. There are about 6.2 million Americans actively involved in direct selling.

That said, according to the DSA, there are 6.2 million Americans currently participating in MLM. That’s less than 2% of Americans, suggesting that participation rates are decreasing as younger generations come of age.

3. The MLM industry grossed $35.4 billion in 2018.

Despite declining participation, the MLM industry is still remarkably strong. The DSA reports that the industry is still worth more than $35 billion, up from $28 billion in 2009.

4. As of 2009, 94.2% of DSA members use MLM.

The most recent numbers available show that the vast majority of direct selling companies that are members of the DSA use multilevel marketing. In 1990, only 25% of member companies used MLM, which demonstrates how firmly entrenched MLM has become in the direct selling business.

5. Wellness and cosmetics/personal care are the top direct selling categories.

The most popular product categories for direct selling are what you might expect. In 2019, wellness accounted for 33.2% of sales, while cosmetics/personal care accounted for 31.2% of sales. Household goods and durables was a distant third with 12.8% of sales.