NAICS Code 541613-04 - Multi-Level Marketing

Marketing Level - NAICS 8-Digit

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NAICS CODE 541613-04
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NAICS Code 541613-04 Description (8-Digit)

Multi-Level Marketing (MLM) is a business model that involves recruiting individuals to become distributors of a company's products or services. These distributors then earn commissions on their own sales as well as the sales made by the people they recruit into the business. MLM is also known as network marketing, referral marketing, and direct selling. MLM companies typically offer a range of products or services, such as health supplements, beauty products, or home goods. Distributors are encouraged to sell these products to their friends, family, and acquaintances, as well as to recruit others to become distributors themselves. The more people a distributor recruits and the more products they sell, the higher their potential earnings. Critics of MLM argue that the business model is often exploitative and that many people end up losing money rather than making it. They also point out that MLM companies often rely on high-pressure sales tactics and make unrealistic promises about potential earnings.

Parent Code - Official US Census

Official 6‑digit NAICS codes serve as the parent classification used for government registrations and documentation. The marketing-level 8‑digit codes act as child extensions of these official classifications, providing refined segmentation for more precise targeting and detailed niche insights. Related industries are listed under the parent code, offering a broader context of the industry environment. For further details on the official classification for this industry, please visit the U.S. Census Bureau NAICS Code 541613 page

Tools

Tools commonly used in the Multi-Level Marketing industry for day-to-day tasks and operations.

  • MLM software
  • Social media marketing tools
  • Email marketing software
  • Lead generation tools
  • Sales funnel software
  • Customer relationship management (CRM) software
  • Affiliate marketing software
  • Webinar software
  • Video conferencing software
  • E-commerce platforms

Industry Examples of Multi-Level Marketing

Common products and services typical of NAICS Code 541613-04, illustrating the main business activities and contributions to the market.

  • Health supplements
  • Beauty products
  • Home goods
  • Personal care products
  • Weight loss products
  • Essential oils
  • Kitchenware
  • Clothing and accessories
  • Educational courses
  • Financial services

History

A concise historical narrative of NAICS Code 541613-04 covering global milestones and recent developments within the United States.

  • Multi-Level Marketing (MLM) has a long and controversial history worldwide. The first MLM company, California Vitamin Company, was founded in 1934, and it was later renamed Nutrilite. In the 1950s, Amway, one of the largest MLM companies, was founded. In the 1970s, MLM companies started to face legal challenges, and the Federal Trade Commission (FTC) started to regulate the industry. In the 1980s, MLM companies started to expand globally, and in the 1990s, MLM companies started to use the internet to recruit and sell products. In recent years, MLM companies have faced criticism for their business practices, including allegations of pyramid schemes and false income claims. In the United States, MLM companies have a similar history. The first MLM company, Nutrilite, was founded in the 1930s, and Amway was founded in the 1950s. In the 1970s, the FTC started to regulate the industry, and in the 1980s, MLM companies started to expand globally. In the 1990s, MLM companies started to use the internet to recruit and sell products. In recent years, MLM companies have faced criticism for their business practices, including allegations of pyramid schemes and false income claims. Despite the controversies, MLM companies continue to operate in the United States and around the world.