How Network Marketing is growing effectively in USA?
In 2020, when the whole world was suffering from the outbreak of coronavirus, the direct selling industry maintained a steady growth.
Did you know
According to DSA (Direct Selling Association) 2020 report, $40.1 Billion retail sales were held in the direct selling industry of USA which is 13.9% higher compared to 2019.
While the GDP of most countries was declining in 2020, the direct selling industry has shown a positive ray of light.
In this post, we are going to discuss How the network marketing business is growing effectively in the USA. What makes USA direct selling pioneer and keys factors behind impressive stats?
How Network Marketing is Growing Effectively in USA?
Before moving forward to the reason behind the growth of direct selling business in the USA. Let’s look at some jaw-dropping combined facts about direct selling and United States.
Did you know
As per Direct Selling Association(DSA):
- Over more than 7.7 Million direct sellers are present in the USA. 6.8 of them do direct selling part-time and 0.9 million do it full-time.
- Record-breaking $40.1 Billion was a total turnover of the US direct selling industry in 2020.
- US direct selling market is dominated by women. Out of the total direct seller, 75% are women in the industry.
- 50% of direct sellers are between the age of 35 to 54 years.
Most direct sales generating states in the USA.
| States | People Involved in Direct Selling | Retail Sale |
|---|---|---|
| California | 1,939,010 | $5.3B |
| Texas | 1,532,302 | $4.3B |
| Florida | 1,321,051 | $2.3B |
| New York | 747,934 | $2.1B |
According to Direct Selling News Global List:
Out of the top 20 direct selling companies in the world, 13 companies are from the USA.
| Sr No | Company Name | Revenue 2020 (In Billion USD) | Origin | Year Founded |
|---|---|---|---|---|
| 1 | Amway | 8.50 | USA | 1959 |
| 2 | Natura Cosmeticos | 7.16 | Brazil | 1969 |
| 3 | Herbalife | 5.54 | USA | 1980 |
| 4 | Vorwerk | 4.40 | Germany | 1883 |
| 5 | Infinitus | 3.95 | China | 1992 |
| 6 | Avon Products | 3.50 | USA | 1886 |
| 7 | Coway | 2.80 | South Korea | 1989 |
| 8 | Mary Kay | 2.70 | USA | 1963 |
| 9 | Melaleuca | 2.70 | USA | 1985 |
| 10 | Nu Skin | 2.58 | USA | 1984 |
| 11 | Forever Living | 2.31 | USA | 1978 |
| 12 | Young Living | 2.20 | USA | 1993 |
| 13 | Primerica | 2.20 | USA | 1977 |
| 14 | DoTerra | 1.89 | USA | 2008 |
| 15 | eXp Realty | 1.80 | USA | 2002 |
| 16 | PM International | 1.70 | Germany | 1993 |
| 17 | Tupperware | 1.70 | USA | 1948 |
| 18 | Perfect China | 1.60 | China | 1994 |
| 19 | Rodan & Fields | 1.57 | USA | 2002 |
| 20 | JoyMain Int | 1.50 | China | 2009 |
Entrepreneurial Mindset
With the above facts, DSA (Direct Selling Association) also released a study on Consumer Attitudes & Entrepreneurship.
That study shows that 77% of Americans are interested in flexible entrepreneurial income opportunities and exactly for this network marketing is known for.
The study compared the start-up cost of direct selling with other businesses. Direct selling businesses have $82.50 starting costs which are the lowest among other opportunities.
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Low starting costs and flexible working make direct selling a lucrative opportunity not only for Americans but everyone who wants extra income.
Also read,
Strong Roots
The USA maintained the number one spot in the direct selling industry. From the beginning, the direct selling market is largest in the USA and has a strong grasp from start.
Like most countries, MLM is also controversial in the USA but an entrepreneurial mindset population loves to rise in the direct selling business.
Most of the richest network marketers are in the USA.
Powerful Companies
In global top direct selling companies, more than half of the companies are from the USA.
USA-originated direct selling companies’ scale their business to different continents efficiently compare to any other country.
Following the trends every year new direct selling giants take birth in the USA and move across the world.
If you are also aiming to build a direct selling company to rule over your country, continent or whole planet, then you will need an adequate system to scale.
Ventaforce is an MLM software that provides complete management to your fingertips. You can directly reach us and take a free demo to understand more about our MLM software Ventaforce.
Working Women
Women have played a vital role in direct selling especially in developed countries like the USA.
Did you know
75% of working professionals in the USA direct selling industry are women.
American women seek an independent lifestyle and direct selling provides them the opportunity to grow according to their skills.
Person from any gender, age group, religion, background, and qualification can become a successful direct seller. It required a passion to get succeeded.
American women have built their own legacy by proving dominance in direct selling.
More about wellness
Americans are more civilized and wealthy compared to most countries on planet earth. It allows Americans to spend more on themselves.
As we know direct selling industry mostly sells health and wellness products. Americans can easily purchase these personal care products for themselves and start work with any direct selling companies without paying extra.
When they find the products of MLM companies useful and effective, they can promote these products to others or make other parts of their downline to earn passive income on each downline purchase.
Regular purchase from active downlines increase their commission exponentially.
Part-time opportunity
Out of 7.7 Million Americans, 6.9 Million do direct selling part-time. Various people want an extra source of income from their free time. Therefore direct selling offers work and time flexibility.
Direct sales can be made at any place. Students, housewives, retired person or at any stage of life, people can opt for direct selling and earn based on their skillset.
Direct selling is an open market and anyone can make a hand in it.
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