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Multilevel Marketing in Malaysia

Multilevel Marketing in Malaysia represents one of the greatest business opportunities for any entrepreneur looking to capitalise on this well accepted and growing business trend in both Malaysia and overseas.

Multilevel Marketing in Malaysia

Malaysia the second most dominate Multilevel Marketing country in the world!

Author's Note: Throughout this website we typically refer to the term 'Network Marketing', however given that in Malaysia the term 'Multilevel Marketing' is more widely accepted, it is more appropriate to use this term here.

When Network Marketing Business School recently conducted research into the international multilevel marketing industry, Malaysia was a stand out.

Typically across the industry, countries are ranked by the World Federation of Direct Selling (WFDSA) according to their annual sales figures (US dollars). In 2008, Malaysia was listed in 10th place with their annual sales revenue exceeding 2 billion US dollars.

Whilst these figures can be very useful, they should not be used to reflect the strength of the industry in any given country as it does not take into consideration the strength of the local currency or the local population.

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What impressed us about multilevel marketing in Malaysia is that there are over 4 million direct selling distributors across the country. This averages out to be approx 1 direct selling business for every 2.5 households in the country (most of which are multilevel marketing distributors). This makes Malaysia the second most dominate multilevel marketing country in the world (per head of population*), the number 1 title going to Taiwan.

To put this into perspective whilst the United States is recognised by the WFDSA as the leading network marketing country by annual sales revenue, there are approximately 15 million direct selling distributors in the US which equates to 1 direct selling business for every 8 US households. As you can see per head of population multilevel marketing in Malaysia is much more widely accepted.

The Direct Selling Association of Malaysia (DSAM) represents 59 companies (90% of which are multilevel marketing companies) and has just celebrated its 30th birthday.

When Malaysia (population of 27 million) is compared to other direct selling countries that are similar in population such as Australia (21 million), Malaysia has 6 times the amount of direct selling business operators. Additionally when you consider that direct selling industry has only been in the Malaysia for 30 years, compared to Australia’s 50 years, this helps to highlight the strength and rapid growth of Multilevel Marketing in Malaysia.

This is not to undermine the strength of network marketing industry in places such as Australia and the US but instead it should help to demonstrates some of the cultural differences and the wide acceptance of the Multilevel Marketing business model in Malaysia.

Our predictions for Multilevel Marketing in Malaysia?

Given that Multilevel Marketing is so widely accepted in Malaysia, this industry will continue grow and provide a significant contribution to the local economy.

One thing to consider about the long term sustainability of multilevel marketing in Malaysia is that given this business model is so widely accepted and commonly used, companies that promote essential and/or quality products are more likely to do well than those promoting novelty and/or non essential product items.

If your network marketing company is about to open a new market in Malaysia our advice is not to leave your run too late. Get in early and do your pre-launch homework, a good campaign will ensure you profit handsomely.

Malaysian Network Marketing Directory - This Malaysian Network Marketing Directory includes a list and contact details for all the Network Marketing companies registered with the DSAM.

For more information about network marketing in Malaysia or the direct selling industry please visit the DSAM website.

Learn about other global network marketing opportunities by clicking here.

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