21 MLM Statistics 2022- Facts and Trends in the Industry

Are you thinking of joining the growing number of entrepreneurs that seem to be making it in the MLM industry? Then you’ve come to the right place.

First things first, MLM, short for multi-level marketing, is not a pyramid scheme. Even though it involves a network of people, real products are sold to and the profit made from them are used as the basis of payment. 

Nevertheless, it involves a lot of hard work. Gathering recruits can be challenging especially for beginners. However, the fact that you are on this page means you’re ready for the work.

Of course, there is money in it which is why big companies like Herbalife and Amyway are a force to reckon. But you have to know at least a bit of what to expect from it and so this page has been dedicated to providing the facts and trends. Read on.

General MLM Facts and Statistics 2022

1. It costs an estimated $25,000 to launch an MLM business.
2. 66% of MLM participants invest less than $1,000.
3. Only 25% of MLM participants turn a profit.
4. About one in 13 adults have participated in multilevel marketing (MLM)
5. Surveys revealed 25% of participants made money from multilevel marketing.
6. 90 – 99% of distributors in multilevel marketing only receive a couple of hundred dollars commission per year.
7. 10% of people manage to make over $100 a week using MLM.
8. The wellness category is particularly promising with 24.1% of total sales by category.
9. Reputable MLM companies will buy back as much as 80% of unused stock.
10. 27% of those taking part in an AARP Foundation Study only broke even with MLM.

MLM Growth Over the Years

11. The MLM industry is operable in more than 100+ countries, and it is one of the best industries to stay profitable. 
12. The top MLM markets globally are — USA, China, and Korea. With the USA recording the highest sales of 20%, China 19%, and Korea 9%. 
13. Global sales were generated by 118.4 million independent representatives, which is an increase of 1.6% from 2017. 

This shows that the salesforce has increased at a three-year compound annual growth rate of 4.2% from 2015-2018.

14. MLM statistics clearly show that the multi-level marketing business model is growing fast. The industry is making massive progress in terms of technology too.
15. Wellness and Cosmetics/Personal Care are the top-selling categories. Cosmetics/Personal Care has historically high sales of 31.2%, and Wellness has seen an increase in sales by 3.4 percentage points since 2014. Its sales record is 33.2%.

What Percentage of MLM Make Money?

16.   27% of those taking part in an AARP Foundation Study only broke even with MLM.
17.  90 – 99% of distributors in multilevel marketing only receive a couple of hundred dollars commission per year.
18.  MLM business plans usually have a failure rate of around 95%.
19.  10% of people managed to make over $100 a week using MLM.
20. According to MLM industry statistics, 30% of Fortune reps make no money.
21. 53% of people make money by participating in multilevel marketing.

MLM Success Stats

The wellness category of MLM is particularly promising, with 24.1% of total sales by category, statistics about multilevel marketing revenue reveal.

23. Reputable MLM companies will buy back as much as 80% of unused stock.

24. According to multilevel marketing statistics, reps working for the Forever brand must shift 75% of their stock before ordering more.

25. 50% of people drop out of MLM within their first year, MLM statistics reveal.

Stats on People that Lose Money in MLM

26. 47% of people lose money by participating in multilevel marketing.

27.  The top 1% of Amway employees lose almost $1,000 per annum.

28. 94% of NU Skin sellers lose money.

29. According to research at the FTC, a whopping 99% of recruited sellers lose money in an MLM venture. That means just 1% turn a profit.

30. The AARP Foundation found that only about 25% of those it surveyed made a profit with MLM, 27% broke even, and about half of them lost money.

Conclusion 

And that’s how we wrap up the facts and trends in the MLM industry. Given the facts you’ve come across, would you consider going into it? I want to hear from you.