MLM products and businesses have taken off this year, with the growth of online and mobile platforms driving a new wave of demand for the products and the services.
The MLM market, which is forecast to grow to $5.4 trillion by 2019, is expected to continue to grow as new markets are opened up and companies are asked to offer more services to attract new investors.
The online market, with $8.6 billion in revenue in 2020, will also be an important driver for growth as new online businesses are able to attract users who may be able to take advantage of lower costs.
The biggest MLM company in Canada, EnviroMark, reported that its online marketplace for MLM business attracted over 1.2 million new customers in the first three months of the year, a 17% increase from the same period in 2019.
The company said its online sales rose by 21% in the last quarter to $2.9 billion, while the revenue grew by 13% to $841 million.
The online platform has grown to include over 2,600 MLM companies, including EnvroMark, with another 600 companies launching in the next 12 months, according to EnvireMark CEO John Bouchard.
It has also been used to connect MLM investors to businesses in their markets.
“We believe we have the largest market in Canada and we have made the most of it,” said Bouchards son, Steve Bouchardi, president of EnvironMarks business.
“The growth in the marketplace has been phenomenal.
We have seen the growth in both the size and scope of the marketplace and the amount of new businesses that are entering the market.”
The MLM boom, fuelled by growing demand for MLMs, has attracted attention from the federal government.
The federal government has invested $1 billion to fund the development of the national digital marketplace, while some provinces have also invested in MLM platforms.
While Enviromark’s revenues have increased, its sales have declined as a result of lower demand and competition.
Bouchardo said the company’s revenue is still growing, but that it’s a bit slower than last year.
“The growth is more from the online than the offline market, but there are definitely signs of slowing,” said the MLM industry veteran.
“There is a bit of an impact from the growth online, but we have to see how long that lasts.
The bigger the growth, the bigger the impact on the offline business.”
What we need is a better digital platform to allow MLMs to attract investors, and we think that’s a very good idea.
“Enviromark is the largest MLM operator in Canada.
It offers a number of products and a range of services to businesses, including direct-to-consumer sales and digital platforms.
It operates in six markets across Canada, including Toronto, Edmonton, Montreal, Calgary and Vancouver.