Main trends in the network marketing industry in 2024

Under the influence of technological progress and changing societal priorities, the direct selling industry is transforming. In the ever-changing landscape, understanding market trends and business adaptability play a key role in maintaining its competitive positions.

Network Marketing Market Trends in 2024

Network marketing remains a rapidly growing industry worldwide. Due to the industry's unlimited potential for business building, around 10,000 companies have incorporated MLM strategy into their operations. The opportunity to achieve financial independence and work flexibility attracts new distributors to network projects daily, with a total of over 182 million people involved.

According to Zion Market Research, the volume of the global network marketing market has already exceeded $223 billion. Sales in the industry are projected to grow by 6.5% by 2024.

In a prospective and competitive direct sales market, it is important to consider changing consumer preferences and current industry trends for effective business development. Analyzing the global MLM industry, we have identified the main trends that will be observed in 2024:

#1. Growing Personalization

Companies implementing a personalization strategy achieve 15% higher revenue, and their customer satisfaction level is 20% higher. Currently, consumers expect an individual approach, and personalization remains a relevant trend in the MLM business.

Effective personalization requires analyzing the preferences of specific consumers, their behavior, and purchase history. Based on this data, individual communication messages and product offers are created to maximize customer satisfaction. For personalized communication with customers, reminders of items in the cart or product recommendations are often used via email. Overall, this increases customer loyalty, ensuring repeat purchases and the profitability growth of the network project.

#2. Implementation of Artificial Intelligence

The development of neural networks is transforming the business sphere, and according to statistics, approximately 35% of companies from various industries worldwide are already using AI in their operations. According to research, artificial intelligence increases business productivity by 20%.

In the MLM industry, artificial intelligence has become a tool for collecting and analyzing large volumes of data, as well as automating business processes. AI helps to more accurately forecast market trends and necessary product stocks, simplify distributor training, improve personalization, and provide 24/7 customer service. For example, Amway Corporation managed to increase its sales volumes by using AI-based automated chatbots. Thus, artificial intelligence contributes to the desired growth of network companies.

#3. Blockchain Revolution

Blockchain is a major technological trend based on cryptographic principles. Ensuring data confidentiality, transparent information exchange, and security, this technology enhances financial services and simplifies business operations.

MLM companies mainly use blockchain technologies for secure commission payments and sales tracking. Blockchain-based smart contracts automate all transactions, helping to maintain accurate records and provide fair rewards to distributors based on their performance. Natura & Co has also created a blockchain platform where customers can track the routes of their orders. Thus, integrating blockchain into MLM software reduces the risks of fraud, strengthens trust among customers and network partners.

#4. Use of Social Networks

Approximately 60% of the world's population are social media users, and social commerce sales are rapidly growing, approaching $1.3 billion. Thus, social media is becoming powerful platforms for attracting customers and increasing brand awareness.

Among the popular social networks in network marketing are Facebook, Instagram, Linkedin, and YouTube. MLM companies use all these platforms to showcase their products and values, communicate with customers and partners, and make sales. Short product video reviews and user-generated content (UGC) have a significant impact on attracting audiences and gaining their trust on social media. A well-structured SMM strategy allows businesses to acquire numerous 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 by 2024 as innovative methods of interacting with teams and potential clients.

AR and VR enhance the efficiency of training distributors in network structures by adding excitement and interactivity to educational materials. Virtual reality transforms the direct sales process by visually familiarizing the customer with the product without geographical limitations and the ability to visualize how the product fits into their life. For example, AVON corporation used VR to allow customers to virtually try on its jewelry. VR and AR technologies provide tools to boost distributor motivation and an unparalleled level of customer service, leading to increased sales conversion.

#6. Environmental Focus

Modern society is becoming increasingly environmentally conscious, and the preservation of one's health and the planet's ecology are important factors in purchasing decisions. 72% of consumers have started buying more environmentally friendly products.

The direct sales market is expected to see an increase in demand for organic cosmetics, water and air purification systems, and other eco-products by 2024. MLM companies are increasingly directing their resources towards the production and promotion of eco-products, repositioning their branding, and supporting projects aimed at nature conservation. This way, businesses are building a positive image, attracting more customers, and increasing profitability, as 55% of buyers are willing to pay more for eco-friendly products.