Individual direct sellers’ earnings have always created a controversy. Some people strongly argue that it is not possible to make even a part-time income in direct sales, let alone a yearly six-figure income. On the other end of the spectrum, there are others who claim it is so easy to get rich.
The truth obviously lies somewhere, but where exactly? To shed light on this whole issue and help educate the beginners, I think we should just take a look at the real picture. Below are some facts from 10 major direct selling companies’ income disclosures for 2021:
A typical Amway IBO’s (Independent Business Owner) average earnings in the U.S. was $766 in 2021.
In 2021, 33% of U.S.registered IBOs did not earn any compensation from Amway and 62received a payment from Amway in at least one month.
Of those who received a payment from Amway, the Top 1% earned $87,901 the top 10% earned $14,537 and the top 50% earned $3,414 on the average.
Amway IBOs at the “Founder Platinum” level made $45.338 and those at the “Platinum” level $19,691 in 2021.
Click for Amway’s compensation report.
An Arbonne “Independent Consultant” in the United States averaged $250 in 2021 in commissions and overrides. This group was 61% of Arbonne’s total sales force.
Arbonne District Managers’ annual average was $1,836, Area Managers’ $10,452, Regional Vice Presidents’ $44,656, and finally, National Vice Presidents earned $187,791 in 2020. National Vice Presidents made up 1% of the field force.
Click for Arbonne’s compensation report.
In 2021, about 166,000 of Herbalife’s U.S. Distributors earned money from their sales and the sales of those they sponsored.
50% of first year Distributors earned more than $190 in a month. Top 10% in this group earned more than $1,636 and top 1% earned more than $8,912 in a month.
50% of all other Distributors earned more than $241/month. Top 10% earned more than $3,925 and top 1% earned more than $18,176 in a month. Herbalife’s top 1% Distributors are typically President’s Team members and the time it took them to reach President’s Team typically is between 5-11 years, the company reports.
Click for Herbalife’s compensation report.
94% of Mannatech’s field force in the U.S. averaged $2.10 / month in 2021. Those at the Gold Associate level were 2% and made $39.20. 0.5% were at the Silver Executive Director level and earned $1,215.
Silver Presidential Directors made $15,188. 2-Star Platinum Presidential Director was the highest level of achievement, and these made $67,682 / month in 2021.
Click for Mannatech’s compensation report.
In the United States, NSP had approximately 14,752 Active Consultants in 2021, representing approximately 45% of all Consultants. An “Active Consultant” is a Consultant who had at least one other Consultant or Customer in their personally sponsored downline during the year.
In 2021, the number of Active Consultants who earned commissions was 9,567, representing approximately 65% of the Active Consultant base. 27% of the Actives earned less than $100 annually and 4% more than $10,000.
Click for Nature’s Sunshine’s compensation report.
In 2021, Nu Skin paid approximately $207 million in sales compensation to Brand Affiliates residing in the United States.
On a monthly basis, an average of 22% of U.S. Active Brand Affiliates earned a sales compensation payment.
“Brand Affiliates” who made up 13% of Active Brand Affiliates earned $37 / month on the average. Brand Representatives (4%) made $635 and Diamond Directors (0.15%) $9,670.
Blue Diamond Directors were at the highest level (0.24%) who averaged $39,066 in 2021 in the United States.
Click for Nu Skin’s compensation report.
20% of Optavia’s Independent Coaches in the U.S. had no earnings in 2021 and 7% made between $0.1-100 annually.
Yearly average incomes of approximately 13% of coaches were between $1,000-2,500 whereas about 2% of the field force made $7,500-10,000. Those who earned more than $200,000 made up 0.24% of Optavia’s coaches.
Click for Optavia’s compensation report.
A typical R+F’s paid Consultant earned $420 annually in 2021.
90% of those who ordered R + F products in 2021 in the U.S. were strictly customers.
7% were “Product Ambassadors” and were paid between $20 and $45,737. “Business Builders” constituted the remaining group of 3%. Among this group, “Developing Business Consultants” made between $20-29,114, “Evolving Leaders” $2,192-147,088 and “Advance Leaders” $14,461- 2,933,919.
Click for Rodan + Fields’s compensation report.
Scentsy divides its Consultants into two groups in its earnings disclosure: Group 1 consists of Consultants who were with the company for all 12 months of 2021 and Group 2 with less than 12 months.
There were 59,736 consultants in Group 1 whose yearly average earning was $2,925 (minimum $133, maximum $ $1,311,053). Group 2 composed of 152,021 consultants. They were paid between $0 and $71,510 (average $300)
Click for Scenty’s compensation report.
In 2021, there were a total of 30,375 active USANA Associates in the United States. Actives are those who made at least one purchase in 2021.
USANA reports its Associates’ earnings in “net profits”. It defines net profits as “the sum of (i) all commissions, bonuses, and other compensation paid by USANA to an Associate, minus (ii) non-commissionable purchases (e.g. sales aids, welcome kits, event registrations) made by an Associate and shipping and taxes paid by Associates.
29% of USANA Associates in the U.S. did not make any net profits in 2021. 43% made between $0 and $250. 5% made between $1,000-2,000 and 0.1% above $200,000.
Click for USANA’s compensation report.
There are several significant takeaways from these figures. To me, these statistics once again show three important things:
1) It is actually possible to achieve really high income through direct selling.
2) Not everybody reaches those high levels.
3) In fact, “1” and “2” above are public information that everyone has access to.
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