Utah’s direct selling industry anchored over 38,000 well-paying jobs and added significantly to state and local tax revenues as part of its 2020 statewide economic impacts, according to a new report from the Kem C. Gardner Policy Institute at the University of Utah.
“Utah is a global hub for the direct selling business model,” said Levi Pace, Gardner Institute senior research economist and lead author of the study. “The industry comprises 91 direct selling companies and 66 key suppliers.{mprestriction ids="1,3"} Ten of these Utah-based direct selling companies provided more than $10.3 billion in goods and services to their customers around the world, 6.1 percent of industry sales from all states and countries.”
According to the report, the direct selling industry employed 17,487 Utah residents, and industry activity indirectly supported another 20,751 jobs. At $63,652 per employee, direct selling companies paid their Utah employees an average of 18.4 percent more than companies in other industries in 2020.
International sales of $6.3 billion from selected direct selling companies in Utah made up 71.7 percent of the state’s non-gold commodity exports in 2020.
In 2020, 10 large direct selling companies had 21,457 independent sales representatives in Utah, predominantly women. Their median self-employment earnings (before expenses) ranged from $70 to $3,000 per year.
With so many direct sales companies based in Utah, out-of-state visitors who attended direct selling conventions and meetings in Utah spent an estimated $41.6 million annually from 2015 to 2019, the report said.
“The Institute’s report reveals Utah’s direct selling companies represent over 70 percent of our state’s non-mineral international exports,” said Miles Hansen, president and CEO of World Trade Center Utah. “These Utah brands are not only known around the world, with millions of representatives outside the U.S., they provide a significant boost to the Utah economy as many of their products are manufactured in the state, creating more stable jobs for Utah families and individuals.”
The full report can be accessed at the Gardner Institute website www.gardner.utah.edu.{/mprestriction}
