DirectSellingStar

Money & math

Average vs median

Why an average income figure overstates what most participants earn.

Also: mean vs median

An average (mean) adds all earnings and divides by the number of participants. Because direct selling earnings are extremely skewed, a handful of six-figure earners lifts the average far above what a typical participant sees. A median ignores the extremes.

Example: nine participants earn $100 and one earns $50,000. The average is $5,090; the median is $100. Both numbers are true. Only one describes the group.