Recruitment vs. sales: the 80/20 rule reinterpreted
The data show that the average income of independent sellers rose in nominal terms, but in real terms, taking inflation into account, it typically declined. The top 1% continues to dominate the commission pyramid:
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The data show that the average income of independent sellers rose in nominal terms, but in real terms, taking inflation into account, it typically declined. The top 1% continues to dominate the commission pyramid: they receive about 60% of the industry's total commission payouts. This concentration is not new historically, but due to digital transparency it is becoming increasingly visible.
Tightening regulation and the 70% rule
The tightening regulatory environment poses a challenge for many companies. The EU's 2024 Direct Selling Directive, transposed into Hungarian law, has been in force 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 2026 industry turning point was not a single event, but the emergence of a new standard. The winners will be those who adapted first.
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The rise of digital channels
The rise of digital channels is an irreversible trend.
- TikTok Shop
- Instagram Shopping
- WhatsApp Business API
These now account for 30-40% of the top MLM companies' sales, and this share is growing fast. The question is no longer whether to get involved, but how effectively.
Ethical division and the next 12 months
From an ethical standpoint, the industry remains divisive. Critics argue that the MLM model structurally favours those at the top; supporters emphasise entrepreneurial freedom, the low entry threshold and the global community. Both positions have elements backed by data; the whole truth, as usual, lies somewhere in between.
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