17 Biggest MLM Companies in the World
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In this article, we will take a look at the 17 biggest MLM companies in the world. If you want to see more companies in this selection, go to the 5 Biggest MLM Companies in the World.
Multi-level marketing (MLM) companies are involved in selling products and services by bringing into use a non-salaried workforce in a commission system that is pyramid-structured. These companies are also usually referred to as referral marketing or network marketing companies. According to a report issued by Grand View Research, the size of the MLM industry stood at $189.71 billion at the end of 2021. The industry is set to compound annually at an average rate of 6.1% during the 2022 to 2028 period to reach a size of $286.7 billion. The Asia Pacific region holds the biggest market share of 45% in the industry as of 2021. MLM companies are gaining market share in leading economies like China, India, and Indonesia. Customers prefer customized suggestions on health and beauty from a salesperson, as skincare products with natural ingredients are gaining rapid market traction in the Asia Pacific region.
The growth outlook of the MLM industry depends on increased awareness amongst consumers to check and verify products before buying. Improvement in internet penetration has resulted in the rise of newer business models and has also resulted in a change in customer requirements. Numerous businesses have now developed direct-to-consumer (D2C) distribution channels. The size of the MLM industry can be gauged by the fact that according to the World Federation of Direct Selling Associations (WFDSA), over 125 million people globally were involved in the industry in 2020. The rise of virtual meetings has been a positive development for MLM companies as it has provided them with a new platform to recruit new partners.
Some experts commonly refer to MLM companies as a pyramid scheme that also recruits people to expand their businesses. However, in a pyramid scheme, there are no actual products or investments, and payments are made when they bring in downline members. As more members are involved, the scale of the pyramid scheme expands. A famous skeptic of a renowned MLM company was billionaire hedge fund manager Bill Ackman. He had a bearish stance on Herbalife Nutrition Ltd’s (NYSE:HLF) stock for more than five years as he believed that the company was operating a pyramid scheme. The founder of Pershing Square Capital finally closed out his put positions in June 2019 and lost nearly $1 billion on his short bet on the company. On the other hand, famous hedge fund manager Carl Icahn was bullish on Herbalife Nutrition Ltd (NYSE:HLF) and increased his stake in the company to 26%, which resulted in a profit of over $1 billion. In addition to Herbalife Nutrition Ltd (NYSE:HLF), Amway, Natura & Co, and Vorwerk are also some of the biggest MLM companies in the world.
Content retrieved from: https://finance.yahoo.com/news/17-biggest-mlm-companies-world-144157353.html.
Amway followed by Herbalife are the biggest MLMs in the world. But most people that participate in MLMs make very little money and many lose money. IMO Amway could be called Scamway.