15.6 Million MLM/Direct Selling Reps!
Firstly, if you are in the MLM Industry, become familiar with the DSA. The Direct Selling Association provides tremendous resource, unity, and voice within an industry filled with tremendous success, while marked by tremendous failures.
For many years, the DSA has assembled useful data on the industry. This month, they released exciting numbers from 2011. I was floored when I first review it, then determined to let it sink in, while monitoring other industry indicators. They Nailed it!
While we have been in a difficult economy, I have watch a steady stream of company start ups and failures, as well as distributor successes and failures. Generally speaking, it is not much different then back in 2007 and 2008.
We used to estimate Start Ups as between 1000 and 1500/month, with 90% failing. Today, I'd say the average Start Up attempts are the same, however today, the failure rate is probably 95% and occurs within 120 days from start. Understand, that this large percent of failures are mostly represented by companies that should never have been launched, or had no real product or service. Some fail due to funding, many fail to Start Up Scams and Bait and Switch programmers who can never deliver an MLM Software system that can actually run their company.
A few are honest Start Ups, with Real Product, that don't fall for a Bait and Switch, and follow a cautious approach to managing growth of the company, distributors, inventory, and cash flow. These are the Stars who pass the huge failure rate and hope to see a 1 year, then 2 year, then 3 year anniversary. They are passionate about their product or service and compassionate towards their distributors.
Let's get back on track...
Taking a look at the 2011 DSA stats and it's right there. In 2007, we had about 15 million sellers, growing to 15.1 in 2008. 2009 tripped 16.1, 2010 15.8, and 2011..... 15.6 million sellers.
What does that tell us? Well, for starters... there's just as many people selling products through Direct Selling/MLM in 2011, as back in 2007. Slightly more, but pretty close.
It is no wonder desires to launch new MLM Businesses continue! Additionally, in 2008 about 91.1% of sellers were only Part Time. That stayed about the same for 2009 and 2010, at 92.5% and 91.1%, respectively, however 2011 went to 88.8%.
This is an interesting number. We see a drop in Part-Time Sellers, and an increase in Full-Time Sellers (11.2%).
As a rule, never quit your job... or at least, see your financial adviser first!
I believe this number (11.2%) reflects the large number of unemployed persons, turning to the MLM Industry, with the time to actually do it Full-Time.
Sum it Up! What does it all mean? On the streets, you can launch an MLM/Direct Selling Business and have no problem finding sellers. Furthermore, a significant number of the sellers are available to work Full-Time.
For an MLM/Direct Selling Company, it is about marketing a particular Product or Service, not about recruiting. Thus, a healthy number of sellers, working Full-Time means SOLID Sales!
Oh... and the numbers show that as well.
Sales increased by 4.6% to $29,870,000,000 ($29.87 Billion).
Sales actually outpaced the US GDP (Gross Domestic Product) by .7%, which only grew by 3.9%.
Again, a field of willing workers, many available to be Full-Time... this means more sales!
With Full-Time MLM & Direct Selling Reps reaching 11.2%, it is time for companies to consider adjusting their business models to reward, and support, Full-Time Sellers in new ways!
Additionally, MLM & Direct Selling Software needs to adapt. It is no longer a static website with an occasional customer. Nor is it a Part-Time rep that checks a back office once a month. New MLM Software Technologies are under way to support the daily needs of the Full-Time Distributor!
Sincerely,
Scott H Leonard
Scott H Leonard
888-221-0106
http://mlmsoftwarecentral.com/https://www.facebook.com/MLMSoftwareCentral