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Unlike many other businesses in the world, network marketing is not just holding its ground during the pandemic, but experiencing a rebirth. Read about the impact of the economy and the pandemic on the MLM industry and what to expect in 2022.    Network marketing evolves according to its own laws and right now, as well as during any crisis, it is on the rise. Having lost their jobs or found themselves in difficult life situations, many people started looking for new or additional sources of i

MLM in 2021. How did the world situation affect network marketing

MLM in 2021. How did the world situation affect network marketing | MLM Guide 2025

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FlawlessMLM is a leading provider of software development and consulting services for network marketing companies. With over 20 years of experience since 2004, we have launched more than 400 successful MLM projects globally.

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FlawlessMLM

Flawless Group

FlawlessMLM brand represents excellence in MLM software development and consulting since 2004

Founder of FlawlessMLM and Flawless Group. Expert in marketing, sales, and business consulting with over 20 years of experience in launching and managing successful MLM projects and corporate software solutions.

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Ivan Shaulskiy

FlawlessMLM provides comprehensive MLM software development, consulting, and business solutions for network marketing companies worldwide.

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Unlike many other businesses in the world, network marketing is not just holding its ground during the pandemic, but experiencing a rebirth. Read about the impact of the economy and the pandemic on the MLM industry and what to expect in 2022. Network marketing evolves according to its own laws and right now, as well as during any crisis, it is on the rise. Having lost their jobs or found themselves in difficult life situations, many people started looking for new or additional sources of income. MLM companies have proven to be an excellent alternative, where they will teach, tell, show, and help develop their business. Network marketing is a way of direct selling products and services through a network of distributors (without many intermediaries, directly from the manufacturer). By partnering with a network company, a person becomes its partner and has the right to attract similar sales agents to their team.During the economic downturn and forced self-isolation, many were attracted by the opportunity to work from home, set their own flexible schedule, and ultimately achieve a stable income. How Network Marketing Survives a Crisis As the world witnesses new outbreaks of coronavirus, the recession (global economic downturn) remains strong, which benefits the MLM industry. Network marketing tends to thrive when the economy is in a challenging position. For example, according to the DSA report, after the crisis of 2007–2009, the total number of network company partners increased from 15.1 million (2008) to 18.2 million (2014).Partnership companies create new jobs and provide opportunities for self-realization, successfully adapt to new promotion trends, and actively develop the industry as a whole. For example, here are a few illustrative cases that we observed over the past year: - In India, more than 122 million Indians who lost their jobs due to the pandemic have entered the network marketing niche. - Vestige (working in the Health & Wellness products niche) modified its marketing plan and developed a special support program during the pandemic.- Tupperware started hosting parties on Facebook, Zoom, WhatsApp, and TikTok, thereby attracting a new audience and increased overall profitability. - British retailer Body Shop, by incorporating network marketing methods into their business, increased company profitability by 80%.According to analysts' reports, the MLM industry's profitability has increased from $168.33 billion in 2020 to $184.64 billion in 2021 with a compound annual growth rate (CAGR) of 9.7%. By 2025, the market is expected to reach $237.63 billion with a compound annual growth rate of 6.5%. TOP current facts about network marketing Fact #1. Asia has become the most promising market for promoting network companies. In 2017, they achieved the highest growth rates in sales volume - $85 billion in total, while Europe - $38 billion, North America - $36 billion, and South Africa - $27 billion. Fact #2. The volume of global sales in the network industry in 2020 amounted to about $180 billion.Fact #3. The most profitable multi-level marketing companies were founded in the USA. These include Amway, Avon, and Herbalife with revenues of $8.8 billion, $5.7 billion, and $4.5 billion respectively. Fact #4. The annual sales turnover of co-founder and one of the leading leaders of Amway, Dexter Yager, was approximately $2 billion (he passed away in 2019). His wife, Birdie's team, reaches over 1 million distributors. Their sons, Jeff, Doyle, and Steve, also work in their parents' company.Fact #5. Networkers who use social networks as a sales tool are 51% more likely to achieve their sales goals. Additionally, they exceed the sales quota by an average of 23%. P.S.: We discussed how to attract customers and distributors through social networks in the article How to invite people to network marketing Fact #6. 62% of network company partners enter the business for additional income, but 29% of these distributors stay in the business long term.Fact #7. The Direct Selling Association (DSA) conducted a global survey and found that COVID-19 had a positive impact on the revenue of 59% of MLM companies. MLM Trends in 2021 Network marketing in 2021 is vastly different from what it was 10 years ago. Cold and pushy promotion, the strategy of involving friends and family in the business no longer work - consumer interests and thinking have changed, and seasoned networkers experience a slight sense of nostalgia for the past.Now, partners register in business online (they don't need to go to the office); hold meetings on Zoom (no need to travel to cities and countries for routine meetings); undergo training through online webinars on corporate platforms (sponsors just need to make a recording and share the link) and use Instagram and TikTok as the main promotion channels (no need to call massive databases to introduce themselves). P.S.: About current online business promotion methods, we wrote in the article Digital Trends 2022 Also, networkers themselves have changed - if in the past, students and women on maternity leave worked in this business, now people who intend to radically change their lives are joining MLM. More and more often, serial entrepreneurs and top managers of large companies are found among networkers, who have achieved a lot in life, succeeded, but continue to develop, change their professional sphere, diversify their social and financial capital. Applying their experience in promoting other businesses, these people quickly achieve success in the network marketing industry. The crisis period is the best time to launch and promote a network company. By creating a marketing plan taking into account the current interests of distributors and developing a promotion strategy for the project "in context" (based on information occasions and circumstances in which people live in a specific period), you will be able to scale your business at an enviable speed. The specialists of the FlawlessMLM team will advise on how to adapt the project to new conditions. We will also assist with software development, improving the marketing plan, optimizing work and organizational processes. To learn more about solutions for your business, contact our manager in the website chat (flawlessmlm.com)

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