Network Marketing Industry Growth Continues
Network marketing is growing in the global economy – are you growing with it?
According to research and statistics compiled by Networking Times in 2016, the network marketing industry’s upward growth continues in the United States. It will grow for at least two more years. How has network marketing managed to grow at such an unprecedented rate in a turbulent global economy? Why is it predicted to continue growing over the next several years? Factors contributing to the spike in network marketing recently include the personal touch network marketing provides, technological advancements and the freedom afforded by entrepreneurship.
Network Marketing Is Larger Than You Think
Eighty percent of global network marketing sales come from the world’s top ten countries for the industry. These include the U.S., China, Korea, Germany, Japan, Brazil, Mexico, Malaysia and the U.K. Network marketing flourishes around the world.
In 2015, global retail sales reached $183 billion, marking a 7.7% increase over 2014. Additionally, 103 million people were involved in network marketing globally in 2015 (a 4.4% increase from the previous year). A significant factor contributing to this growth is, in both retail sales and the amount of people involved, the global rise of entrepreneurship.
For example, in the United States, 85% of people hold positive attitudes toward entrepreneurship. Network marketing provides the means to be in business for yourself, the ideal market for a budding entrepreneur. The number of people involved in networking marketing in the United States grew from 18 million in 2014 to 20 million in 2015 – an 11% increase.
What’s So Special About Network Marketing, Anyway?
Customers get a more intimate experience during the buying process with network marketing, compared to just buying a product off the shelf in a store. Estimated network marketing retail sales in the U.S. reached about $36 billion in 2015, which was a 5% increase over 2014. U.S. network marketing sales growth outpaced overall retail sales (1.6%) and gross domestic product (3.5%) growth. Not only can a network marketer showcase the benefits of their products, they also act as guides. They help customers stick to their resolutions and experience success in their new business ventures.
With increased online interaction and more information readily available, consumers constantly seek validation from reference groups, peer reviews and their community when identifying with a brand. Network marketing’s value proposition provides just that – instant validation and confirmation about the quality of the product.
This Industry Is Just As Flexible As You
In recent years, technological and e-commerce platform advancements allow network marketing companies to give distributors tools to easily grow their business. It’s easier than ever for a network marketer to succeed. Online ordering, 24/7 access to training and no need for inventory make network marketing the ideal industry for entrepreneurs.
Social media is a huge driving force behind business growth as well. The proliferation of social media platforms and online person-to-person communications positively impacts the industry. Many former/current employees feel empowered in their ability to become true entrepreneurs through online communications.
Network marketing also capitalizes on macro trends globally. The wellness sector accounts for the largest share of network marketing sales. It is the fastest growing sector of network marketing. For example, in the U.S., the network marketing industry is in the ideal position to tap into trends such as an aging population and obesity.
Due to strong macroeconomic conditions, an increasing trend toward entrepreneurship, an ability to adapt to consumer trends and advances in technology, networking marketing continues to experience yearly growth. The business sector will grow in the U.S. 3 to 5%/year for the next two years.