Tax-free commissions? - International MLM structures, legally

The state of play in 2026

The network marketing industry consolidated further in 2026: the top 25 companies together generated more than 84 billion dollars in global turnover, while most companies ranked below the top 100 stagnated or declined. The industry's internal dynamics suggest that product quality alone is not enough to reach a leading position: a digital platform, compliance capacity and a global logistics chain are together a necessary condition.

Details and figures

On the Hungarian market the picture differs somewhat from the global one. According to a recent NAV analysis, the combined revenue of the top 10 MLM companies active in Hungary was 178 billion forints in 2025, an increase of 8.3% over the previous year. The engine of this growth is Herbalife and Forever Living, both of which build on a strong Hungarian distributor base.

"The 2026 industry turning point was not a single event, but the emergence of a new standard. The winners will be those who adapted first." - industry analyst

What does this mean for the market?

The tightening regulatory environment poses a challenge for many companies. The transposition of the EU's 2024 Direct Selling Directive has been in force in Hungary since September 2024, and the so-called 70% rule (namely that at least 70% of sellers' income must come from actual product sales) is now a legal obligation, not just a recommendation.

The next 12 months

Sharpening competition also brings a restructuring of compensation plans. Several leading companies have adjusted their compensation schemes over the past 12 months, generally in order to improve the motivation of active sellers and to filter out passive free riders. The changes typically affect the mid-level ladder the most.