(image: Pexels)
SEJONG, July 27 (Korea Bizwire) — Most multi-level marketing (MLM) sales representatives in South Korea earned no commissions based on their sales performance last year, data showed Wednesday.
According to the Fair Trade Commission, the total number of MLM sales representatives in South Korea last year was 7.05 million, marking a 3.4 percent decline from the previous year.
The aggregate value of commissions earned last year amounted to 1.85 trillion won (US$1.45 billion), showing a 4.5 percent increase year on year.
MLM sales representatives typically receive commissions from sales agents based on the sales records of their recruits lower down in the pyramid.
Only 1.37 million sales personnel received commissions more than once last year, constituting 19 percent of the total.
Among those who received commissions, a significant 81 percent earned less than 500,000 won (US$393) in total. Conversely, the share of those who earned more than 30 million won was estimated at a mere 0.8 percent.
The top 1 percent of salespeople earned an average of 72.7 million won last year, while the upper 1 to 6 percent earned 7.4 million won.
In contrast, the sales representatives in the upper 6-30 percent earned an average of only 830,000 won, while those in the remaining group had average annual earnings of just 85,000 won, highlighting a significant gap among them.
Ashley Song (ashley@koreabizwire.com)
