Driven by technological advancements and changing societal priorities, the direct selling industry is transforming. In a variable landscape, understanding market trends and business adaptability plays a key role in maintaining its competitive position.
Network marketing market trends in 2024
Network marketing is still a fast growing industry across the globe. Due to the unlimited potential of the industry to build business, about 10 thousand companies have already implemented MLM strategy in their operations. Also the opportunity to gain financial independence and flexibility in work daily attracts new distributors to network projects, the total number of which is more than 182 million people.
According to Zion Market Research, the global network marketing market has already surpassed the $223 billion mark. The industry's sales are projected to grow by 6.5% in 2024.
In the promising and at the same time highly competitive direct selling market, it is important to take into account changing consumer preferences and current industry trends for effective business development. Analyzing the global MLM industry, we have identified its main trends that will be observed in 2024:
#1. Growing personalization
Companies that implement a personalization strategy generate 15% higher profits and their customer satisfaction levels are 20% higher. Consumers now expect personalized attention and personalization remains a hot trend in MLM business.
Effective implementation of personalization requires analysis of specific customer preferences, behavior and purchase history. Based on this data, customized communication messages and product offerings that maximize customer satisfaction are created. E-mail is often used for personalized customer communication, shopping cart reminders or product recommendations. All of this generally increases customer loyalty, ensuring repeat purchases and increasing the profitability of the network project.
#2. Adoption of artificial intelligence
The development of neural networks is transforming the business sphere and statistically, about 35% of companies from different industries around the world are already using AI in their operations. According to a study, artificial intelligence increases business productivity by 20%.
In the MLM industry, artificial intelligence has become a tool for collecting and analyzing large amounts of data, as well as automating business processes. AI helps to more accurately predict market trends and necessary product inventories, facilitate distributor training, improve personalization and provide 24/7 customer service. For example, Amway Corporation has been able to increase its sales by using AI-based automated chatbots. So, artificial intelligence is contributing to the desired growth of MLM companies.
#3. The blockchain revolution
Blockchain is a major technological trend based on cryptographic principles. By guaranteeing data privacy, transparent information exchange and security, this technology improves financial services and simplifies business.
MLM companies use blockchain technology primarily to securely make commission payments and track sales. Blockchain-based smart contracts automate all transactions, helping to keep accurate records and ensure fair rewards to distributors based on their productivity. Natura & Co Corporation has also created a blockchain platform where customers can track the routes of their orders. In this way, integrating blockchain into MLM software reduces fraud risks and builds trust with customers and network partners.
#4. Social media utilization
Approximately 60% of the world's population are social media users and social commerce sales are growing rapidly, approaching $1.3 billion. This is how social media is becoming a powerful platform for customer engagement and brand awareness.
Among the popular social networks in network marketing are Facebook, Instagram, Linkedin and YouTube. MLM companies use all of these platforms to showcase their products and values, communicate with customers and partners, and make sales. The greatest influence on attracting an audience and gaining its trust in social networks is the short video reviews of products and user-generated content (UGC). The right SMM strategy allows a business to get many customers from different countries and enter the international market.
#5. Popularization of virtual reality
Augmented reality (AR) and virtual reality (VR) technologies will become a widespread trend in business in 2024 as innovative ways to interact with your team and potential customers.
AR and VR are improving the effectiveness of distributor training by adding excitement and interactivity to training materials. Virtual reality is changing the direct sales process by visually familiarizing customers with the product without geographical boundaries and allowing them to visualize how the product will fit into their lives. For example, AVON Corporation used VR to allow customers to virtually try on its jewelry. VR and AR technologies provide tools to enhance distributor motivation and unrivaled customer service, resulting in higher sales conversion rates.
#6. Environmental orientation
Today's society is becoming more environmentally conscious, and preserving our own health and the planet's ecology are important factors in our purchasing decisions. 72% of consumers have started buying more eco-friendly products.
Demand for organic cosmetics, water or air purification systems and other eco products is expected to grow in the direct sales market in 2024. MLM companies are increasingly directing their resources to manufacturing and promoting eco products, reorienting their positioning and supporting projects aimed at preserving nature. In this way, the business builds a positive image, attracts more customers and increases its profitability, as 55% of customers are willing to pay more for eco products.
Despite whether you are an experienced MLM company owner or just planning to create one, adapting to the trends of the network marketing sphere will help your project to grow dynamically in 2024. If you want to build a growing network marketing business, contact our experts for advice. Our FlawlessMLM team with 20 years of experience in successfully launching MLM projects will help you create an MLM company according to the specifics of the market or integrate modern direct sales tools to scale your existing business.
