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Network Marketing. Numbers and Facts

Turnover and number of distributors in different countries around the world. Data from the World Federation of Direct Selling Associations.

The network industry has become one of the important components of the global economy. Over the past ten to twelve years, MLM has demonstrated not only viability but also stable growth in terms of sales volume and the number of distributors involved in this business. 
 
Since 1980, a real MLM boom has begun. Thousands of companies have started using network marketing to promote their products to the market. Networkers offer a wide range of products - insurance policies, household chemicals, plastic cards, jewelry, tableware, computers, mini-tractors, and much more. The principles of multi-level marketing have been adapted by major companies such as FORD, Colgate, Master-card, Canon, Lipton, Coca-cola, Toyota, Panasonic, and other business giants.

 

 

 
MLM has become not only an economic but also a social phenomenon in most developed countries in the world, influencing the perception of society as a whole, governments, and legal institutions. 
 
There is no need to prove that MLM, as a complex mechanism for entrepreneurial activities involving huge masses of people not only as distributors but also as consumers, absorbs and transforms a wide range of human relationships and aspirations. Moreover, MLM helps its participants not only to acquire material goods and achieve success but also leads to new ideological standards. 
 
The turnovers of network companies grow annually by 20-30%, and the number of distributors has already exceeded 100 million people. 
In the USA, about 15 percent of the population are engaged in network marketing. In many countries around the world, this figure is currently within 5-7 percent. 
By the beginning of the 21st century, there were already more than 3000 network marketing companies worldwide. 
 
Of these, 2000 companies started their business in the USA. The MLM industry is one of the fastest-growing economic systems in the world. In the USA, 20% of dollar millionaires have made their fortune through network marketing. US economists suggest that in our century, 70 percent of all companies in the world will operate using the network marketing concept. Currently, network marketing is thriving in more than 170 countries on all continents. 
 
Statistics on official sales volumes and the number of distributors of network companies in some countries: 
(according to the World Federation of Direct Selling Associations): 
  

<table align="center" border="1" cellpadding="10" cellspacing="0" style="height:400px;width:600px;">
	<tbody>
		<tr>
			<td style="width: 40%; text-align: center;">Country</td>
			<td style="width: 20%; text-align: center;">Year</td>
			<td style="width: 20%; text-align: center;">Revenue in $</td>
			<td style="text-align: center;">Number of Distributors</td>
		</tr>
		<tr>
			<td style="text-align: center;">Australia</td>
			<td style="text-align: center;">2007</td>
			<td style="text-align: center;">1.2 billion</td>
			<td style="text-align: center;">610,000</td>
		</tr>
		<tr>
			<td style="text-align: center;">Canada</td>
			<td style="text-align: center;">2006</td>
			<td style="text-align: center;">1.22 billion</td>
			<td style="text-align: center;">538,475</td>
		</tr>
		<tr>
			<td style="text-align: center;">Germany</td>
			<td style="text-align: center;">2006</td>
			<td style="text-align: center;">115 million</td>
			<td style="text-align: center;">60,000</td>
		</tr><tr>
			<td style="text-align: center;">Italy</td>
			<td style="text-align: center;">2007</td>
			<td style="text-align: center;">3.58 billion</td>
			<td style="text-align: center;">335,000</td>
		</tr>
		<tr>
			<td style="text-align: center;">France</td>
			<td style="text-align: center;">2007</td>
			<td style="text-align: center;">2.393 billion</td>
			<td style="text-align: center;">223,000</td>
		</tr>
		<tr>
			<td style="text-align: center;">Japan</td>
			<td style="text-align: center;">2007</td>
			<td style="text-align: center;">20.39 billion</td>
			<td style="text-align: center;">2,700,000</td>
		</tr>
		<tr>
			<td style="text-align: center;">Russia</td>
			<td style="text-align: center;">2007</td>
			<td style="text-align: center;">2.78 billion</td>
			<td style="text-align: center;">3,375,849</td>
		</tr>
		<tr>
			<td style="text-align: center;">Ukraine</td>
			<td style="text-align: center;">2007</td>
			<td style="text-align: center;">449 million</td>
			<td style="text-align: center;">708,347</td>
		</tr><tr>
			<td style="text-align: center;">England</td>
			<td style="text-align: center;">2006</td>
			<td style="text-align: center;">3.564 billion</td>
			<td style="text-align: center;">419,500</td>
		</tr>
		<tr>
			<td style="text-align: center;">USA</td>
			<td style="text-align: center;">2006</td>
			<td style="text-align: center;">32.18 billion</td>
			<td style="text-align: center;">15,200,000</td>
		</tr>
		<tr>
			<td style="text-align: center;">Thailand</td>
			<td style="text-align: center;">2006</td>
			<td style="text-align: center;">1.363 billion</td>
			<td style="text-align: center;">4,100,000</td>
		</tr>
		<tr>
			<td style="text-align: center;">Total (according to WFP)</td>
			<td style="text-align: center;"></td>
			<td style="text-align: center;">111 billion</td>
			<td style="text-align: center;">67,862,439</td>
		</tr>
	</tbody>
</table>

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