Direct Selling Secrets ARPU
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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
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Ted
Hey this is GREAT INFO !!!! Don’t know where you get it, but can you do it on some more companies?
Thanks
Sabina
A larger ARPU list is here: https://www.businessforhome.org/mlm-500-companies-revenue/distributor-numbers-per-company/
It is great to see you publish these figures. At a corporate leadership level these are called Productivity Levels.
The challenge is comparing ‘like with like’.
The term ‘distributor’ is not defined so numbers are not credible. They could be ‘preferred customers’, ‘retailers’ or ‘networkers’. The important figure is ‘Revenue per Networker’.
The other challenge is ‘margin’. You cannot compare low margin telecoms to high margin health and beauty. Thus Amway’s figures are high through low margin ‘transfer buying’.
Great discussion points.
Ed
Ed,
Let’s compare Nu Skin and Oriflame. Both in Health and Beauty and approx. $1,300 million revenue. ARPU Oriflame $377 versus $1,749 for Nu Skin. I would prefer Nu Skin as a Direct Selling distributor…..
In Oriflame you have to build up a 5 times larger downline then in Nu Skin… As both are public companies I expect the distributor numbers are correct.
GROSS COMPANY INCOME PRODUCTION PER DISTRIBUTOR
THIS TELLS YOU NOTHING ABOUT WHAT THE COMPLAN PAYS OUT.
IT IS JUST A MEASUREMENT OF â??HOW TO PACK THE COMPANY PIPELINE OFFERING BETTER.”
LOVE YA… BUT NuSKIN IS OVER A BILLION IN SALES! ORIFLAME IS OFF TOO THIS LOOKS LIKE THEIR RUSSIAN SALES…..?????
https://www.mlmwatchdog.com/Li_Directory_MLM_Companies.html
ROD COOK
Ted,
Seems like a great way of comparing companies. I always find it difficult to interpret the figures however. Especially if you compare the numbers of two companies, say Amway and Forever Living. I know that Amway only reports the number of active distributors, since inactive distributors are removed from their database after some time. Forever Living keeps all their distributors in the database for life, although many of them are inactive. I don’t know how many active distributors they have but it’s definitely far less than 9,500,000.
Always be carefull with statistics and make absolutely certain that you know what those figures represent.