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Old 07-07-2004, 12:23 AM  
herbal logic
Confirmed User
 
Join Date: Feb 2004
Posts: 1,172
preface:

sources = various, reliable data. Including http://w3.excel.com/us/index.asp

which has several, large lucrative contracts with major US companies.

Alot of this data (I believe) applies to webmasters in many shapes and forms.



bad attitudes towards MLM have been around since day 1. Consider one of the most successful:

bad attitudes were held about franchising in the 1950?s when anyone could buy a McDonald?s franchise for around $900. Franchising came within a few votes in the United States Congress of being made illegal. We all know that today a huge percentage of business is done through franchising.


A tremendous amount of goods and services are sold by Direct Selling, most of that is MLM. The growth of MLM is etraordinary. I?ve pastedsome of the 2002 figures below.


I know many people who have been extremely successful in MLM. Saying that, I just saw a presentation by one of the most successful people who said (I would suspect that the numbers are guesses but probably within the ballpark) the following:


44% of new people in MLM quit when they get their first no

22% ? ? ? ? ? second no

16% ? ? ? ? ? third no

12% ? ? ? ? ? fourth no

7% of new people in MLM are successful


The Direct Selling Association (DSA) 2003 Survey Results have arrived. A few notes:



2002 U.S. Retail Sales $28.69 Billion (up 7.5%)

2002 Global Retail Sales reached $85.04 Billion

2001 - 2002 Growth Rate in sales of sales aids and materials to salespeople increased 19.5%

2001 - 2002 Growth Rate in International Retail Sales of U.S. Direct Selling Firms increased 6.7%

2001 - 2002 Sales Force Recruitment and Attrition

Percentage change in number of salespeople recruited increased 9.0%

Percentage change in number of salespeople dropped 1.3%



Percent of US Sales by Product Group

33.5% Home/Family care (cookware, appliances, etc)

28.2% Personal care (cosmetics, jewelry, etc.)

15.5% Services/other

15/4% Wellness (weight loss products, vitamins, etc)

7.4% Leisure/educational (books, videos, toys, etc.)



Percent of US Sales by Location/Medium

76.1% Face to Face Selling

15.1% Over the phone

8.2% Internet

*I'll bet a pretty dollar that the internet column is due for a dramatic increase.



Percent of US Sales by Sales Strategy (Party Plan vs. individual vs. direct order)

68.7% Individual (person to person)

28.8% Party Plan/Group

2.1% Direct order

0.4% other



2002 Sales People = 13.0 Million (up 6.6%)

2002 Global Sales force size = 47.3 Million



Percent of US Salespeople by Distributorship Type

66% one-person, female

15.8% one-person, male

15.6% two person distributorship

2.6% multi-person distributorship



Percent of US Salespeople by hours worked

8.1% 40 Hours or more per week

7.6% 30 - 39 hours per week

84.3% Fewer than 30 hours per week

*fairly accurate for those who have established themselves.



Percent of US Sales People by Gender

74.2% Female

25.8% Male

*this is almost a direct reverse of the online community.


thoughts?
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