Only 0.8% of Salespeople Earn Over 30 Million Won Annually Through Multi-Level Marketing
Fair Trade Commission Announces Key Information on Multi-Level Marketing Sellers
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Last year, 8 out of 10 multi-level marketing (MLM) salespeople never received any sponsorship commissions. Only 0.8% of salespeople earned more than 30 million KRW annually from sponsorship commissions.
On the 30th, the Korea Fair Trade Commission (KFTC) announced the "2023 Key Information on Multi-Level Marketing Operators" containing these details. According to the KFTC, the number of MLM salespeople last year totaled 7.2 million, a 2.1% increase from the previous year (7.05 million).
The total amount of sponsorship commissions paid to them was 1.6558 trillion KRW, a 10.7% decrease from the previous year (1.8533 trillion KRW). Only 1.24 million salespeople (17.4%) received sponsorship commissions at least once last year.
Among those who received sponsorship commissions, 82% earned less than 500,000 KRW annually, and only 0.8% earned more than 30 million KRW per year.
The top less than 1% of salespeople by sponsorship commissions earned an average of 71.08 million KRW annually, while those in the top 1?6% earned an average of 7.345 million KRW. Salespeople in the top 6?30% earned an average of 810,000 KRW, and the remaining 70% received an average of 80,000 KRW, showing a significant disparity among salespeople.
The number of MLM operators last year was 112, one more than the previous year (111). The total sales amounted to 4.9606 trillion KRW, with the top 10 companies, including Korea Amway and Atomy, accounting for about 78% of sales.
The Door-to-Door Sales Act prohibits sponsorship commissions exceeding 35% of sales to prevent excessive MLM sales.
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A KFTC official emphasized, "It is necessary to refrain from engaging in transactions recklessly without considering one’s economic situation due to greed for receiving high sponsorship commissions."
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