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.
We have conducted research to identify the companies that are operating as a pure play in the MLM industry and those that have established a strong MLM division. We have considered the product portfolio and the growth potential of each MLM company by evaluating their future plans, market trends, and the potential for new product development. These companies have been ranked in ascending order of their 2021 revenue. However, it must be noted that the revenue generated by some of these companies is not solely from MLM sales, as they also have other revenue streams.
17 Biggest MLM Companies in the World
17. The Body Shop
2021 Revenue: $1.1 billion
The Body Shop, a retail brand that sells beauty and personal care products, offers a direct selling opportunity through its The Body Shop At Home program.
The Body Shop At Home program has been functioning successfully for the past 26 years in the UK and Australia. Through the program, individuals can become independent consultants for The Body Shop and sell its products directly to their personal network. Consultants earn a commission for the products they sell, as well as bonuses and incentives through the program. The Body Shop At Home offers a flexible, self-employed opportunity through the MLM distribution method for those interested in selling beauty and personal care products.
16. Oriflame Holding AG
2021 Revenue: $1.1 billion
Oriflame is a Swedish global corporation that focuses on offering beauty and personal care products through a sales force consisting of self-employed representatives.
Oriflame's products are marketed and sold directly to consumers through a multi-level marketing approach, where independent sellers utilize their own personal networks to sell the products. Established in 1967, the company has expanded its operations worldwide, serving more than 60 countries. The company's product line includes skincare, cosmetics, perfumes, personal care, and wellness items. The company’s objective is to be a forefront research and development center in the beauty industry that utilizes direct sales, offering beauty and wellness products that are inspired by nature and advanced by cutting-edge science.
15. Tupperware Brands Corporation (NYSE:TUP)
2021 Revenue: $1.6 billion
Tupperware Brands Corporation (NYSE:TUP), previously referred to as Tupperware Corporation, is an American multinational corporation that offers a variety of household products such as kitchen utensils, preparation tools, containers for storage, and serving items for both the kitchen and home.
Tupperware Brands Corporation (NYSE:TUP) markets its products through a network of self-employed sales consultants who use the MLM strategy. With a strong brand reputation and a rich history dating back to the 1940s, the company has established itself as a household name. Tupperware Brands Corporation (NYSE:TUP) achieved several notable results in 2021 at its company-owned manufacturing facilities. The company was able to divert 75% of its waste from disposal, reduce water withdrawal by 18% per ton of product, reduce the use of polybags for product packaging by 16.5%, and resell, recycle, or repurpose 95% of returned products. These achievements demonstrate Tupperware's commitment to sustainability and environmental responsibility.
“During the quarter we only had one detractor, Tupperware Brands Corporation (NYSE:TUP) whose share price was down more than 30%. The company is in a midst of a multi-year transformation focused on enhancing their global direct selling business, expanding their omnichannel presence, exiting non-core assets, rolling out new product innovation and enhancing the company technology and supply chain. Tupperware’s revenues have been adversely impacted by significant market weakness in Europe and China along with the company experiencing weaker volumes from implementing recent price increases. Management has undertaken a $100M cost reduction program and with the recent price actions beginning to offset commodity price pressures, the company should see profitability and cash flow generation improve over the coming year. In addition, management continues to make incremental investments in the business to further expand their omni-channel efforts and modernize their infrastructure. While it will take longer for the company to complete the turnaround plan, we believe the current share price has limited value for successfully completing the transformation.”
14. Forever Living Products
2021 Revenue: $2 billion
Forever Living Products is a Tempe, Arizona-based, privately owned MLM company founded in 1978 by Rex Maughan. The company has a presence in over 160 countries and a distributor network of over 9.3 million members.
Forever Living Products is involved in the manufacturing and selling of aloe vera-based beauty and wellness products globally. The company owns its aloe fields, research and development (R&D) facilities, and quality control laboratories and allows extra income through its attractive benefits and incentives structure. On January 13, Forever Living Products announced the appointment of Aidan O'Hare as its new President. He is a company veteran with experience working at Forever Living Products for over 26 years.
13. Young Living
2021 Revenue: $2.20 billion
Young Living is a Lehi, Utah-based privately held MLM Company established in 1994 by D. Gary Young. The company started out as a small firm making and selling essential oils, but it has now grown into a global MLM business that sells a range of goods, including household goods, dietary supplements, and personal care products. Young Living has farms all over the world, including Canada, Hawaii, Mexico, and the US.
12. PM International
2021 Revenue: $2.38 billion
PM International is a Luxembourg-based family-owned distributor of advanced health, fitness, and beauty products with a presence in 71 countries through the FitLine brand, which is manufactured in Germany. The company was founded by Rolf Sorg, who is currently serving as the CEO of the company. PM International has sold over 800 million products through its three-decade journey. The company claims that its exclusive nutrient transport concept (NTC) can deliver nutrients where they are needed on the cellular level that aid the user in combatting everyday challenges more effectively and efficiently. PM International offers natural flavors that are free of preservatives and have natural sweeteners.
11. Mary Kay
2021 Revenue: $2.60 billion
Mary Kay is an Addison, Texas-based MLM Company that was founded by Mary Kay Ash in 1963 as “Beauty by Mary Kay,” with one foundation and four skincare products in its portfolio.
The company currently produces more than 200 products that include cosmetics, dietary supplements, fragrances, skin creams, and other personal care items. Mary Kay products are sold in over 40 countries across the world. The company has an independent sales force of over 3.5 million people. Mary Kay is ranked at the 205th position in the Forbes list of largest private companies as of 2022.
10. Nu Skin Enterprises, Inc. (NYSE:NUS)
2021 Revenue: $2.69 billion
Nu Skin Enterprises, Inc. (NYSE:NUS) is a Provo, Utah-based distributor of nutritional and skin care products founded in 1984 with a presence in over 50 countries.
Nu Skin Enterprises, Inc. (NYSE:NUS) sold over 80 million products in 2021 through its portfolio of more than 20 premium brands. The company is focused on reducing the environmental impact of all its product in 2023 and achieving sustainable packaging that is renewable, recyclable, and reusable for all its product by the end of this decade. According to London-based market research firm Euromonitor, Nu Skin Enterprises, Inc. (NYSE:NUS) has been the number one brand for beauty device systems for the last five back-to-back years.
2021 Revenue: $2.70 billion
Melaleuca is an Idaho Falls, Idaho-based wellness company founded in 1985 by Frank L. VanderSloot. The entity is involved in manufacturing and selling pure essential oils, home cleaning, laundry, supplements, foods, and personal care and beauty products.
Melaleuca uses word-of-mouth and referral as its primary marketing tool. Ecosense, Peak Performance, seibella, Renew, MelaPower, and GC Control are some of the brands that fall under the umbrella of Melaleuca. The company claims that its entire customer base of one million has been referred by someone who uses Melaleuca products. Furthermore, the company claims that 9% of its customers have referred one to eight customers.
2021 Revenue: $3.20 billion
Coway is a South Korean company that sells water purifiers and other home appliances and accessories through a multi-level marketing (MLM) business model. The company was founded by Yoon Seok-geum in 1989 and presently has a headcount of over 6,500 employees.
The water purifiers manufactured by Coway use various filtration technologies such as activated carbon, reverse osmosis, and UV light to remove impurities from water. The company provides a wide range of appliances that have advanced filtration technologies. Coway has partnered with the popular South Korean band BTS to promote its products as its brand ambassadors since November 2021.
7. Avon Products
2021 Revenue: $3.40 billion
Avon Products is a London, UK-based cosmetic, fragrance, skincare, and personal care company founded in 1886 by David McConnell, who was a traveling book salesman. Presently, the company has more than 6.4 million active representatives working globally. The company was listed publicly on the NYSE until 2020 before its merger with Sao Paulo, Brazil-based cosmetics company Natura & Co Holding SA. Avon Products has always focused on product sales and less on downline recruitment. Avon Products also has a mobile app to help millions of microbusiness owners run their operations while on the go. Following successful app trials in the UK, "Avon On" was introduced in 17 markets throughout the world.
6. eXp World Holdings, Inc. (NASDAQ:EXPI)
2021 Revenue: $3.80 billion
eXp World Holdings, Inc. (NASDAQ:EXPI) is a real estate brokerage company that has operations in 24 countries across the world and has over 86,000 real estate agents attached to the company. The company recently launched its operations in Dubai, UAE, in December 2022.
eXp World Holdings, Inc. (NASDAQ:EXPI) was founded in 2009 by Glenn Sanford. Sanford returned as the CEO of the company earlier this month during these uncertain times as benchmark interest rates, and rising inflation is adversely impacting the real estate sector. eXp World Holdings, Inc. (NASDAQ:EXPI) splits the commission with its agent in an 80/20 ratio with a cap placed at $16,000 and a per-month fee of $85.
East 72 shared its outlook on eXp World Holdings, Inc. (NASDAQ:EXPI) in its Q1 2022 investor letter. Here’s what the firm said:
“Investors don’t like listed real estate brokers – at all. There are three significant US listed residential real estate brokers or franchisors (which includes) eXp World Holdings (EXPI: market capitalisation US$3.03billion less $108m in cash) with 72,000 agents connected via the eXp World and Virbela platforms; EXPI earned ~$41million in operating profit in 2021, after $144million in stock based compensation!”
In addition to eXp World Holdings, Inc. (NASDAQ:EXPI), Amway, Natura & Co, and Vorwerk are also some of the biggest MLM companies in the world.
Click to continue reading and see the 5 Biggest MLM Companies in the World.
Disclosure: None. 17 Biggest MLM Companies in the World is originally published on Insider Monkey.