Network Marketing in Australia

Network Marketing in Australia represents a great business opportunity for any entrepreneur looking to capitalise on growing business trends both in Australian and overseas.

The Australian network marketing industry is governed by the Direct Selling Association of Australia (DSAA), formally known as the National Association of Direct Selling Organisations which was founded in 1967 with just 5 company members. Today the Australian membership has grown to represent 75 companies and more than 620 000 independent salespeople nationwide. This equates to at least 1 direct selling business in every 12 households in Australia.

Of the 75 represented direct selling companies in Australia, 28 of them are network marketing companies. Other members include Party Plan companies such as ‘Tupperware’ and Door to Door Catalogue companies such as ‘Avon’ and ‘Homecare’.

Although it is not a requirement for all network marketing companies to become members of the Direct Selling Association, it is estimated that about 90% of all Australian network marketing distributors are members of represented companies.

The direct selling industry currently contributes about 1.3 billion dollars into the national economy and has had consistent growth over the past decade. The industry embraces a broad range of products, with a growing presence in the areas of cosmetic and health-related products.

The following table helps to show a breakdown of the main types of products that are sold through the direct selling industry in Australia.

Source: Table constructed from data published at www.dsaa.asn.au (2008)

It is interesting to note that 3 out of 4 (74%) independent direct selling business operators in Australia are female. Such a dominant female industry can be contributed to a large proportion of female orientated products highlighted in the table above.

Whilst the industry is predominately female orientated there has been a recent increase in the number of males starting a network marketing business as a result of the increasing number of companies now offering unisex products, such as those in the health and wellness industry.

Our Predictions for Network Marketing in Australia

The Australian population typically enjoy a high standard of living, but it does come at significant cost with the price of housing in the major cities amongst the most expensive places to live in the world.

In particular recent reports suggest that the younger generations (Gen X and Y) are unlikely to be able to afford to buy a house in the major cities unless there is a significant change in wages and the cost of housing.

Currently, network marketing in Australia is healthy but not yet widely accepted across the majority of the population. This offers entrepreneurs a great network marketing opportunity to position themselves towards the start of a growing trend.

Network marketing in Australia is predicted to have rapid growth in the next 10 years as more and more Australians look for alternative strategies to help fund their desired lifestyles. Coupled with the recent global economic events and the expected rise of unemployment rates in 2009, now’s a great time to be looking at network marketing opportunity in Australia.

For more information about Network Marketing in Australia or the direct selling industry in please visit the DSAA website.