Network Marketing or MLM, multi-level marketing, is big business and worth a whopping $1.2 billion every year in the UK alone. With 500,000 active direct sellers, the UK’s love for network marketing shows no signs of slowing any time soon.
So, what is MLM?
MLM is a level playing field in that it allows people from all levels of society the same opportunities to grow their own business, work from home, and have the freedom and flexibility to make MLM a full-time income or as a supplement to a more regular job. There are two income strings commonly associated with MLM. The first is the commission from products sold and the second is commission earned from products your recruits, or team members, sell.
What are Recruits?
Recruits, or reps, are people just like you who are looking for another way of earning. They will align with the brand, believe in the products and be ready to be coached and guided by you. In turn, they may then look to build their own team and you may also earn commission from their sales. This is called your downline.
Isn’t that a Pyramid Scheme?
No, whilst the business model is pyramid shaped it is important to understand the difference between MLM and pyramid schemes. Firstly, pyramid schemes are illegal in the UK and MLM’s are not. The main difference between the two is that with an MLM there is a product to sell, and agents earn commission from sales and not just recruiting. In fact, some agents only concern themselves with sales and have no interest in building a team.
What can I Earn?
There is no guaranteed success in any chosen career and any opportunity requires hard work, grit, and determination. To succeed in MLM you need to be coachable, learn from others, take advantage of the training on offer, be consistent and, most of all, persevere.
Most agents, or distributors, give up well within the first year or flit from company to company when they do not get instant results. This is fine if you discover you do not align with your chosen company’s values or you simply do not like the products but it is important to note that the most successful people don’t give up and, in fact, network marketing has more millionaires than any other industry.
The average monthly earnings of a direct seller vary wildly with some people earning nothing and some earning astronomical figures. The most successful network marketer in the world is Omar Salazar of Mexico who rakes in approximately $19million every year. As it stands, of the Top Ten earners in Europe none of them are from the UK but could that be about to change? It is estimated that the average monthly earnings are around £300 though, due to the nature of the work, it is almost impossible to apply an average as there are people that are agents for multiple companies, full-time and part-time agents, people who only sell and people who build teams. What is certain, is that there is uncapped earning potential.
Popular UK MLM Companies
In 2022, the most popular and highest grossing MLM company was Utility Warehouse with a revenue of $2,030million. They had the biggest growth rate at an impressive 35% which is not surprising given that they aim to provide consumers with cheaper utility bills. Founded in 1997, it is only in more recent times as people look for cheaper bills that their services have been in such high demand.
The second highest grossing MLM company was Ann Summers who have become synonymous with adult toys and clothing and have been operating in the direct sales market for over 50 years. In 2022, they posted revenue of $180million. Cambridge Diet, a health and wellness company, posted the third highest revenue at $131million.