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Utah economy

Utah’s direct selling industry anchored over 38,000 jobs, accounting for over 70% of non-gold exports in 2020

Newswise — August 16, 2022 (Salt Lake City) — Utah’s established direct selling industry has anchored more than 38,000 well-paying jobs and significantly increased state and local tax revenue as part of its statewide economic impacts in 2020, according to a first-of-its-kind report from the Kem C. Gardner Policy Institute.

“Utah is a global hub for the direct selling business model,” said Levi Pace, senior research economist at the Gardner Institute and lead author of the study. “The industry includes 91 direct selling companies and 66 key suppliers. Ten of these Utah-based direct selling companies provided more than $10.3 billion in goods and services to their customers worldwide, with 6.1% of industry sales coming from everything States and countries.

The main conclusions of the report are as follows:

  • Economical consequences—The direct selling industry employed 17,487 Utah residents, and industry activity indirectly supported another 20,751 jobs.
  • High salaries—At $63,652 per employee, direct selling companies paid their Utah employees an average of 18.4% more than companies in other industries in 2020.
  • Exports—International sales of $6.3 billion from select Utah direct selling companies accounted for 71.7% of the state’s non-gold commodity exports in 2020.
  • Entrepreneurship—In 2020, Utah’s top 10 direct selling companies had 21,457 independent sales reps, mostly women. Their median self-employment earnings (before expenses) ranged from $70 to $3,000 per year.
  • business travelers—Visitors from out of state who attended direct selling conventions in Utah spent an estimated $41.6 million annually from 2015 to 2019.

“The Institute’s report reveals that Utah’s direct selling companies represent over 70% of our state’s non-mineral international exports,” said Miles Hansen, president and CEO of the World Trade Center Utah. “These Utah brands are not only known around the world, with millions of representatives outside the United States, they provide a significant boost to the Utah economy, as many of their products are made in the state, creating more stable jobs for Utah families and individuals. »

The full report and industry overview are now available online.

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The Kem C. Gardner Policy Institute serves Utah by preparing research on the economic, population, and public policies that help the state prosper. We are experts in Utah demographics, leaders in the Utah economy, and experts in public policy and survey research. We are an honest broker of INFORMED RESEARCH, which guides INFORMED DISCUSSIONS and leads to INFORMED DECISIONS™. For more information, please visit gardner.utah.edu or call 801-587-3717.

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Mary Cashion

The author Mary Cashion