Statistics for MLM

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I found this on one of my many fact finding missions and although it has been heard before, it's always good to put it on paper to see every now and again. I find this useful in keeping ahead of the game. This articl was done by Laura Shapiro


MLM Statistics: the Bad, the Worse, and the Ugly

You know about these, right? The less than encouraging statistics about the MLM industry. . .? It's too bad that the most famous MLM statistics are negative.

Some are true and some aren't. But most hear only the negative. And that's what they talk about. We'll talk about them here too just on the off-chance that you haven't yet come across these numbers. But this article will also surprise you perhaps with some positive MLM statistics, the ones that aren't famous or talked about. . .except in circles of successful network marketers.

Let's start out with the number one of all MLM statistics...the failure rate for network marketing is estimated to be anywhere from 97 - 99%.

Yes, that happens to be true and the reasons for it thus far are 1) those who enter the business aren't given the right information upfront by their sponsors 2) those who enter the business cannot afford to put in the money and/or time necessary to achieve what they would like.

And just a quick clarification, you don't necessarily need to be pouring tons of money into your network marketing business to start getting more customers and team members.

But you do need to put in consistent time and effort. You don't need to put in 40 hours a week (phew!), but you DO need to be consistent with the 10 hours that you put in.

Many people who join network marketing are told that they need no experience and/or that the business just sells itself. When they don't see that happening. . .they drop out (usually within the first year) and contribute to the 99% failure rate.

So let me give you a general idea of what you do need to be doing to profit in network marketing. Here are some MLM statistics from my network marketing company. These show the relationship between how many people need to be sponsored in order to get the corresponding annual salary.

Sponsor 10 people = $2,796 annual income

Sponsor 20 people = $11,223 annual income

Sponsor 40 people = $16,311 annual income

Sponsor 60 people = $22,028 annual income

Sponsor 125 people = $41,192 annual income

Sponsor 250 people = $59,074 annual income

Sponsor 375 people = $69,375 annual income

Sponsor 500 people = $105,591 annual income

Sponsor 750 people = $120,636 annual income

Sponsor 1,000 people = $235,419 annual income

Sponsor 2,500 people = $563,000 annual income

Obviously, the numbers will vary from MLM to MLM, but one thing is for sure. . .you will not become a millionaire by sponsoring 3 people.

Do you know those numbers for your company? And do you have a plan that allows you to reach the numbers you're looking for? Some may find this kind of information intimidating. I see it as something to set goals around.

And now for a breath of fresh air. . .some MLM statistics that shed a positive light on the industry!

Did you know that more than 56 million people are running MLM businesses in over 100 countries around the world 13.3 million people in the US alone)?

In 2008, network marketing companies earned over $100 billion in sales.

Almost 80% of MLM representatives are females.

And here's one of my favorite MLM statistics. . .

The network marketing industry has grown by 90% globally in the last ten years.

Can you think of any other industries that can say the same? Do you wonder why network marketing, which holds such a bad reputation, is seeing that much growth?

It's because people are tired of working for someone else. They are tired of working harder and longer hours and getting paid less. They are tired of not being able to spend time with their families.

And when they do have time to spend with their families, they are tired of not being able to do the things they would like to do because of lack of funds. They are looking for a way to start their own businesses without investing huge amounts of cash or keeping inventory. They are looking for a team and ready-made resources that can help them grow their businesses. They are looking for something that they can work hard at today and still earn from those efforts way into the future.

They are looking for the solutions to these problems and they are finding them in network marketing.

Those are the MLM statistics that I see every day. What MLM statistics do you see?

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About the Author: Luana Reece

Member Since: 11/05/2009

I'm a Distributor For:: Mary Kay, Inc.

Other Company: Virtual Connection Services, LLC

Industry: Telecommunications

Primary Web Site:


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