The USA is the largest network marketing market in the world, where global standards of quality, ethics, and innovation for MLM companies were formed. So, how is the network business developing in the country today, and what market features should be considered to achieve success? You will learn about all this in this article.

Dynamics of the Network Marketing Industry in the USA

The history of network marketing originated in the United States when in 1934, Carl Rehnborg founded California Vitamins and began promoting his dietary supplements through distributors. California Vitamins quickly reached a turnover of $7 million without any investment in advertising. Since the 1930s, the MLM industry in the country continues to grow dynamically, and more and more entrepreneurs are using this business model. (Banner: MLM companies in the USA had a total sales volume of $36.6 billion in 2023. Source: WFDSA)

The active development of network marketing in the USA is now facilitated by a stable economic environment with a high level of consumption, widespread popularity of social networks, and an entrepreneurial culture. Americans highly value independence and flexibility, the ability to work for themselves, and control their income level. All this allows MLM companies in the country to quickly expand their network with motivated partners and increase sales volumes.

According to the World Federation of Direct Selling Associations (WFDSA), about 13 million distributors are involved in network business in the USA. Additionally, 70% of Americans are interested in the career development opportunities that MLM companies offer, or regularly purchase their products.

The network market in the USA is also characterized by its diversity, where you can easily find the perfect niche for building your own business. However, there are several categories that consistently enjoy high demand. Among them:

1. Wellness products: dietary supplements, vitamins, and sports nutrition make up 33% of total sales.

2. Home goods: cleaning products, household appliances, and other home goods account for 15% of sales.

3. Financial services: insurance, investment solutions, and other financial services occupy 15% of the industry's total turnover.

4. Cosmetics: skincare and hair care products, decorative cosmetics, and perfumes make up 10% of sales.

Regardless of the niche, the reputation and profitability of MLM business in the USA are now significantly influenced by its level of environmental friendliness and corporate social responsibility. According to Cone Communications, 87% of Americans prefer brands that care about nature and society. Furthermore, to ensure the transparency of your network project and strengthen trust among the local population, it is extremely important to comply with all requirements of American legislation.

MLM Legislative Regulation in the USA

Network marketing in the United States is recognized as a fully legal business model, which is clearly regulated by legal norms to prevent fraudulent financial schemes and protect the rights of consumers and distributors.

The main body that regulates the activities of MLM companies in the country is the Federal Trade Commission (FTC). Each state also has its own laws and anti-pyramid statutes for additional regulation.

Among the key rules that every network business in the USA must adhere to are the following:

1. The income of the company and its partners must be based on the sale of real products to end consumers, not on recruiting new participants.

2. MLM projects must have a buyback policy that allows distributors to return unsold products at a price of no less than 90% of their original cost.

3. All information about products, marketing plans, and the average income level of partners must be transparent and truthful. The FTC actively combats deceptive advertising claims.

4. The company cannot compel distributors to purchase large volumes of products to receive bonuses or maintain their status.

MLM businesses must also be registered in the state where you plan to conduct your activity. To promote cosmetics, dietary supplements, or other health products, you will also need the appropriate license.

Top MLM Companies in the USA

According to Business for Home, 55% of the top 100 network companies in the world were founded in the USA. We have compiled a selection of 5 American corporations that are successfully developing both domestically and internationally:

1. Amway

The undisputed leader among MLM companies. It sells dietary supplements under its own Nutrilite brand, Artistry cosmetics and personal care products, household chemicals, and various home goods. The company is known for the high quality and eco-friendliness of its products, strong partner support, and constant innovation. Amway products are already promoted in 100 countries through a partner network of more than 3 million participants, and its income in 2023 was $7.7 billion.

2. Herbalife

Specializes in dietary supplements, sports nutrition, and skincare products. Its goal is to help people live better through scientifically based products and the opportunity to build their own business. The company also founded Nutrition Clubs - unique clubs where clients can get nutrition advice and share experiences, and distributors have an additional sales channel. All these aspects helped Herbalife achieve revenue of $5.1 billion in 2023.

3. eXp Realty

A real estate brokerage company, the main feature of which is the cloud platform eXp World. The platform allows company agents to interact with clients and their team, learn and manage their business without any geographical restrictions. Combining unique cloud technologies and advantageous partner bonuses, eXp Realty has already attracted more than 87,000 agents and is actively developing in 24 countries, where its revenue in 2023 amounted to $4.3 billion.

4. ​Primerica

One of the largest MLM companies in the USA, operating in the financial services niche. It strives to help ordinary families learn to manage their finances and create a stable future through life insurance, pension plans, investments, and other financial instruments. Thus, Primerica already serves more than 5 million clients and has about 150,000 partners in its structure, and its revenue in 2023 reached $2.81 billion.

5. DoTerra

Specializes in the production of essential oils and related products: dietary supplements, face and body care. The company's main product is therapeutic-grade essential oils, each of which undergoes multi-level quality checks according to the patented CPTG standard. Now DoTerra products are sold through 2+ million Wellness Consultants in different corners of the world, and its revenue in 2023 amounted to $1.5 billion.

Summary

Thus, network marketing in the USA continues to develop stably thanks to the high level of public trust, a large consumer base, and advanced technologies. All this opens up boundless opportunities for entrepreneurs to launch and scale MLM companies. However, to achieve true success in the American network market, it is important to offer high-quality and eco-friendly products, create a competent and transparent marketing plan, clearly understand all legal norms, and have reliable software.