Direct Selling Secrets ARPU
[private_platinum]
Do you know the ARPU in your company or downline?
What is ARPU?
ARPU stands for Average Revenue Per User / Distributor usually abbreviated to ARPU and is a measure used by networking companies. It is the total revenue per year divided by the number of distributors or users.
This provides TOP Earners a granular view at a per user basis and allows it to track revenue sources and growth. Around $1,000 is a Direct Selling standard. Below $1,000 you might have a problem.
If a Direct Selling companies disclose it's distributor numbers it might be inflated, therefore you better can take a close look to the ARPU.
Let's have a look to some Direct Selling Companies:
Distributor Numbers Per Company:
Rank Rank Company Year Origin Public Rev 2008 Rev 2009 Members 2009 ARPU 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Forever Living Products claims to have 9,5 million distributors however if you look to the ARPU it is only $316 per user per year. Suppose you have a downline of 1,000 guys and girls your annual revenue over that group would be $316,000. On an average 5% payout you could qualify for, you will earn $15,800. Nice, but not very exiting…
So you better can look for a higher ARPU, if we sort the same figures on the highest ARPU, Amway is king with an ARPU of $2,800 per year. 1,000 distributors will bring you $140,000 commission… However, maybe it is easier to build up a Forever Living Products downline then an Amway downline, but that is an other discussion…..
For a larger ARPU list click here
Average Revenue Per User
Rank Rank Company Year Origin Public Rev 2008 Rev 2009 Members 2009 ARPU 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
[/private_platinum]