Profitable network marketing. What business to open

Hello! Today we’ll talk about network marketing. We will just tell you about it, but this does not mean that we encourage you to do it. This article is just a review of the tool, nothing more.

It is difficult to say what network marketing is in a nutshell. Some people call this earning scheme a real “scam”; others talk about the only opportunity to open your own business without investing tens of thousands in its development. This article will collect the most detailed information, after considering which you will come to certain conclusions and decide for yourself whether it is worth looking for a job in network marketing or whether it is better to leave this area to others.

What is network marketing and what is its essence?

Network marketing- a way to promote a certain product with the help of a network of people who, in turn, receive a percentage of the sale of the product and rewards for attracting new people to the network. A person tells his friends about it, who, in turn, tell their friends, and the result is a kind of network in which it is very easy to distribute the product.

For each person invited, he receives a percentage of his profit. Of course, to attract people to network marketing, various psychological techniques are used. Not for everyone this work seems profitable, so before explaining to a person the essence of the technology for distributing goods, they work with him for a very long time and explain the benefits that he will lose if he does not agree to this work.

Network Marketing - Pyramid

Some people compare network marketing to financial pyramids. Yes, the scheme is a little similar, but in the case of network marketing, no one forces a person to invest huge amounts of money and just sit and wait for a miracle. If you work, constantly increasing your base, you can first break even, and then turn into a plus. Unfortunately, in large networks you will already be too far from the top, so you shouldn’t expect exorbitant fees and life in the Maldives, but a couple of tens of thousands in salary increases is quite possible.

Network marketing system and principles of its functioning

  • Any network system must somehow serve the distribution of a product, good, or specific service that a company or group of people provides;
  • If the flow of goods or services stops for even a few days, money stops flowing and the system collapses completely;
  • The system must have many representatives of the lowest level, because otherwise the scheme does not make sense at all.

If you decide to get into network marketing

It all starts with a banal interview, during which specially trained managers talk to potential buyers, describing all prospects in vivid colors. There may be exaggeration (for example, about the highest income in the first couple of months - even if you are super active and all your friends immediately connect to the network, large sum you will not receive it in the first month).

If you agree to register, some companies may require you to pay an entry fee into the online business. Of course, they will not provide you with any documents, or they will give you something that has no legal force. True, only young and unscrupulous network companies are guilty of this; masters who have been on the market for several decades will never do this, their reputation is too important to them.

After this, the work itself begins. That is, a constant search for new sellers whom you can connect to the network after yourself and make a profit from them. The money is received after the sale of the goods, but some companies additionally set a certain payment day, before which it is impossible to receive the full amount. In the latter case, you should strain yourself - often these are scammers who work for a couple of months, after which they disappear along with the money they earned, leaving behind an empty office and a girl manager in a pre-heart attack state.

How to make money with network marketing

There are three ways to make money in such a company:

  • Resale of products. To do this, a certain product is bought at a wholesale price and sold from friends at the market price. The percentage markup varies from 15 to 30%. This method even has a name: margin;
  • Receiving bonuses for some actions performed within the framework of work in the company. Typically, bonuses are based on the number of sales, although there are certain exceptions. Such earnings greatly depend on the company in which a person works - some do not offer anything at all for exceeding the plan, while others very generously reward for every important figure;
  • Receiving funds from interest that drips from employees who were invited directly by you and your friends. The more such people you have under your command, the greater the amount. If you stand at the beginning of a large network, you don’t have to work at all - but you need to spend a lot of time and effort on building it, in addition, if some of the distributors get disappointed and leave, you will have to come back again to expand the network to an acceptable level of earnings for you.

All these methods require one thing from you: you must work. Work hard, constantly disseminate information, look for new clients. Be prepared for misunderstandings, for the fact that you will simply be banned from in social networks, to the point that you will be trolled and sent in personal correspondence - unfortunately, not all network users react adequately to network marketing on the Internet.

Network marketing on the Internet

If possible, you can sell goods. Or a website to attract people. True, this will require certain resources, and promotion will take a lot of time (unless, of course, you are an expert in).

Among other things, to succeed in network marketing, an employee is required to have certain character traits. First of all, he must be very persistent, not accept refusals, try to prove his point of view - and, at the same time, be able to retreat if he understands that the situation is taking an unfavorable turn for him. Confidence in this list should probably come first: if people feel that you know what you are doing and have no doubts, then they will follow you and work in the same company, generating income - or they will simply buy something -the quantity of goods.

Are people today interested in network marketing?

Despite the large number of standard “scams” ​​and a small percentage of truly successful people, everyone who surfs the Internet has at least once thought about this way of making money. Modern leaders network marketing, like Oriflame, Avon, Faberlic, Vision, Amway, LR, Tian De and Siberian Health, are still in the top requests, according to special service, which determines what words and in what quantities and combinations users usually Google.

Before moving on to specifics, I would like to consider the main advantages and disadvantages of network marketing.

Pros of Network Marketing

  • You can make a lot of money if you really try. To achieve your goal, it is enough to create a close-knit team that will gradually help you make a profit.
  • Financial independence from the company and other people. In other words, you decide for yourself when to sell the product and receive your own revenue; the employer does not monitor this moment at all. Well, a bonus is financial independence from loved ones, for example, from a husband or parents. But complete financial independence cannot be achieved - all risks associated with force majeure will remain.
  • Having your own business. This is not exactly a business, at least at the very beginning of the development of your particular network. In a year or two things will get better, and you will be able to call yourself a small businessman. Investments, by the way, will also be required, so all those who tell you about the complete absence of investments are either lying or do not fully understand the principle of operation of such systems.
  • Close-knit team. There won’t even be any nasty “buts” here - in network marketing they pay attention to this Special attention. The people there are quite friendly, but not everyone is ready to go beyond the boundaries of communication limited to work. There have been cases when very interesting people turned into workers who were no longer interested in anything but profit. It shouldn't come to this.

Cons of Network Marketing

  • Earnings are completely unstable. No one guarantees you that that woman who bought all the goods you purchased this month will do the same next month. If you suddenly get sick, miss a meeting with a client, or simply don’t like someone, you’ve lost money and now you won’t get it back. In general, this is a rather inconvenient scheme that requires constant work and saving in an emergency reserve.
  • The moral burden associated with constant communication with clients. Even if you are extremely sociable and friendly, people will not always be happy to see you. Not all potential clients with whom you communicate will behave appropriately, and if you gather in person for a meeting, you may get injured or damaged equipment and goods.
  • Material investments at all stages. They may be insignificant, but this is not so important - the main thing is that you still have to spend money. And it’s not a fact that the purchased product will pay for itself, so at first distributors try to buy something that they themselves can later use. A few thousand rubles is the normal price to start a career in network marketing. If they are not currently available, we suggest that you familiarize yourself with the information.
  • Responsibility for the people whom you invited to work according to the same scheme. Basically, if moral principles a person is not the highest, he may not pay attention to this point. So, he will train a couple of people and forget about them until they leave and his income drops a little.

Myths and fictions about network marketing

This paragraph contains the most common myths about network marketing and short description facts that debunk them. Read carefully, and if after this you are not disappointed and are ready to start working, proceed to reading the next paragraph.

Myth: The network is the best way to quickly and practically without initial capital open your own business, stopping working “for someone else.”

Reality: Since you will be at the very end of the network, you will have to do a lot of work. Constantly look for interested people, monitor bonus programs and discounts, in general, for the first six months at least life will not seem like sugar. Then you will either be completely tired or reach a more or less normal level of earnings. At the same time, you will still not earn mountains of gold.

Myth: Online shoppers love it when products are offered to them by online retailers rather than official stores.

Reality: Not everyone is comfortable buying such products from online sellers. If you are going to sell such products to your friends and family, you risk ruining your relationship with them. No one will like it if someone decides for him that now he needs just such a shower gel, and no other.

Myth: The whole world will soon abandon trading through regular stores and switch to online trading.

Reality: Pure nonsense. Companies of this kind appeared in the United States in the early 1960s, and until now even a percentage of all sales are not sales in networks. Thus, in the near future you don’t have to worry about regular trading.

Myth: With the help of network marketing, you will free up a lot of time, you will be able to change your lifestyle and just be happy.

Reality: Never trust motivational posters and videos because they often tell lies. In addition, energetic and constantly developing people are unlikely to like sitting at a computer all day and selling a useless product to strangers.

Myth: Trading online allows you to maintain peace of mind.

Reality: There is absolutely no connection. Moreover, if you are a fairly irritable person and cannot calmly respond to rudeness and remark, any call to clients will most likely bring you out of your state of mental balance.

Myth: You don’t even need to look for a permanent network of clients, because you have your friends and acquaintances - they will provide a constant income.

Reality: Now let’s imagine ourselves in the place of such a person: he has lived a conscious life, choosing the means and things that are convenient for him, and then bam - a salesman comes who offers to throw the years of selection into the trash and start buying completely different, untested products.

Myth: You practically do not work, spending only an hour or two a day on sales.

Reality: No no and one more time no. Selling in the initial stages will require a lot of time, which many people probably don’t have. At the same time, you will have to look further, since combining network marketing with your main job is simply unrealistic - if you want to get at least something.

Myth: The employees who are already online are interested in your successful work and development. Working in network marketing allows you to strengthen your spirit and understand that you can run your own business and not depend on anyone.

Reality: Many people play on this, saying “why work for someone if you can open a business right now.” Remember, business and network marketing - different concepts, and such a scheme hardly has anything to do with personal freedom.

What to do if you are still interested in network marketing

Criteria for choosing a network company

Before going to an interview and buying a product, it is recommended to look at the following characteristics of the network company:

  • The product they offer. It should be safe and reasonably affordable so that people can buy it without going broke. Of course, there is a possibility that you will want to sell the same product as very expensive and high quality, but this will be on your conscience.
  • Company age. If it was organized a week ago, then the likelihood that this is another scam, after which the organizers will disappear into the sunset with your money, is very high. The most reliable are companies that have been operating on the market for at least 5 years. This criterion allows you to filter out financial pyramids: financial Pyramide, even the most organized one will not last five years. Unscrupulous network companies squeeze all the juice out of users in the first five years and also stop working; in the rest, you can try to make money (although the competition will be much more serious).
  • Marketing plan. It's best to compare it to plans from other companies you choose to consider. Compensation payments via the network - the most important thing is that you should find out about the conditions of accumulation and payment first of all.
  • Training in the basics of distribution work. A very important point: if they demand payment from you, then most likely you will not be able to do any work with them. It’s the same if the imposed courses do not help in any way, but simply take up time. Just stop going to them, and if suddenly they refuse to pay you without taking courses, get out of there - no one guarantees that after training you will be paid what you earned.
  • Fame matters too. If a company is known in at least three countries, it means that it is more reliable than a company with the same characteristics, but without representative offices in other countries.
  • Legality of the company. If you cannot find a full-fledged representative office (not an office for a day with poor repairs) or an official website, then feel free to break all ties with the company, because nothing good will come from such cooperation. Be sure to check the site for functionality and content: if it was created a long time ago and is updated periodically, then everything is in order.
  • Good team. If you see that these people are really passionate about the idea, and are actively involved in sales, and not just pretending to interest you, if their pages on social networks are more like real ones than advertising, then you can trust them. Remember: you don’t need to evaluate a team during the first meeting; it is advisable to at least learn a little about them before the interview and take a closer look later.

Independent rating of network marketing companies

Also, when choosing, you can focus on the rating of companies, which was compiled based on sales volume in recent years:

  • Amway;
  • Avon Products;
  • Herbalife Ltd;
  • Mary Kay Inc;
  • Vorwerk & Co. KG;
  • Natura Cosmeticos SA

And now more details about each company.

Amway

An international company offering customers more than five hundred types of products that allow them to maintain beauty and health at the proper level. At the same time, the quality of each unit of goods is strictly controlled, which is a rarity among network companies in principle.

Features of work

  • If a person personally buys a large number of company products, he receives an additional reward;
  • Products are purchased at wholesale prices from the company, and the distributor must sell them at a 30% markup. It is these percentages that are the main income of a person at the initial stage of working in a network company;
  • Additional earnings begin if a person invites his friends to the team. The more distributors and consumers he brings, the more profitable it becomes for him to purchase goods, and the more a large amount he will receive from one transaction.

This company - real example how people can earn money without actually leaving home. Of course, you won’t be able to achieve the same thing in a couple of weeks, but if you advertise yourself properly and find regular customers, you’ll get a good increase in your basic income.

Avon

One of the network marketing companies in Russia, which has been known on the market since the 2000s. Representation in more than a hundred countries around the world, so there will be no problems with reliability, unless, of course, you contact a real representative and not a charlatan hiding behind a well-known brand.

The company is famous for offering more than just cosmetics: in the catalogs you can find jewelry, perfumes, small nice accessories for women, etc.

Features of work

Cooperation with the company can be carried out on two bases:

  • As a regular customer with VIP status. Registration is free, each such client receives the opportunity to purchase goods with a standard 30% discount. Every time a client places an order (starting from the first time), he receives gifts from the company;
  • As a coordinator. In this case, MLM (multi-level marketing) takes place: the main task of the coordinator is to attract new representatives to the company. The coordinator also has a fixed discount of 30%, but in addition to it, he receives another 12% of all sales made by his referred friends. It is worth remembering that for each coordinator there are unique incentives and additional discounts. The only thing is that you need to constantly monitor such promotions.

Herbalife

The company is relatively young, it is not yet forty years old, but there are already representatives in almost a hundred countries around the world. If you want to cleanse your body, improve your health and earn a little extra money, then distributorship with this company is the best option. Natural cosmetics are also available.

Features of work

  • To get started, you need to purchase a special kit. It will not be possible to collect cosmetics in separate packs, at least for the first time;
  • The percentage difference is only 25%, unlike previous companies;
  • Above each distributor is a person who receives a commission once a month.

Mary Kay

A company that has been presenting products for skin care and makeup on the market for fifty years. Fame in other countries is not so great, representatives are in less than forty countries, but this does not prevent the company from stubbornly holding on to the first places in the top network marketing in Russia.

Features of work

  • Only women over eighteen can get a job;
  • The consultant is required to purchase a starter kit, without which he will not be able to make further purchases. Income consists of money received from the sale of products and interest that accrues for each new employee invited;
  • If you plan to use these cosmetics for a long time, you can become a direct client with all the attendant bonuses. Discounts can reach forty percent, and the company also provides all customers with gifts and a monthly magazine. Those interested take several courses absolutely free of charge, in particular, training in makeup techniques and the basics of doing business.

Vorwerk

This company, unlike the ones listed above, is in no way associated with cosmetics and body care. The catalogs present appliances, kitchen equipment, etc. There are representative offices in more than 60 countries around the world, and in Russia specifically, similar products have been available for purchase for more than ten years, so the company’s reliability is at a high level.

Features of work

  • If a person has just started working in a similar direction and does not quite understand what they want from him, the company provides the opportunity to take good free courses, thanks to which even beginners understand the scheme very quickly;
  • No one monitors the implementation of the plan; the consultant himself decides when and how much he should work. Of course, only a percentage of sales is paid.

Natura

A Brazilian company that has been successfully selling cosmetics and perfumes for almost fifty years, including in Russia.

Features of work

  • Both consultants and advisors receive exclusively a percentage of sales. There is no additional income for recruiting new employees;
  • The consultant can receive preliminary free training in the basics;
  • The company constantly holds some kind of promotions aimed at encouraging good employees.

Unsuccessful examples of network companies

You must understand that there are different kinds network marketing, and not all systems work as they should. This list contains several examples that show that not all areas are suitable for network marketing, and not all organizers can organize the required level of work.

  • Majerik. Initially, the money was invested in some kind of scientific development, but then the company began to offer completely strange projects, which, for obvious reasons, did not pay off. At the moment, the company has not rehabilitated itself in any way, the reviews are purely negative, the network has practically collapsed.
  • A company that dealt with fuel additives for cars. The manufacturer itself did not inspire confidence, plus, among men, people who are ready to work according to such a system are less common, in general, the idea did not take root at all.
  • Internet market Inmarket. The same market, but with a certain commission given to the owners. Prices naturally increased, as a result of which the site fell into disrepair.

How not to break down and work

Some simple tips finally:

  • Always find out full information about the product you are going to offer to customers.
  • Don’t advertise everything at once, let the buyer get used to you, explain what you do, find out about preferences and only then start the presentation.
  • Watch your appearance and manners. People who look bad tend to sell much less.
  • Practice. Read books, attend trainings, do everything to become more confident and calm.
  • Analyze your mistakes and don’t be afraid to ask more experienced friends for advice.
  • Don't neglect the Internet. There is a great opportunity to advertise yourself and your product.
  • Find your sales method, and under no circumstances bring aggression into it. If the seller starts to put pressure, people feel it and almost immediately “merge”.
  • Do not under any circumstances spoil your relationships with loved ones, friends and colleagues. You can stop being interested in network marketing, and then your entire team will forget about you - but the people who were with you before all this will no longer be able to treat you the same.
  • If possible, use the products yourself. Make additional advertising in this way - believe me, potential clients will be interested.

Results

So, let's summarize briefly. First off: be extremely careful. Never get involved in an initiative if you don’t like it, never pay money if you are not sure of the integrity of the company, etc.

If possible, google reviews about network marketing, in particular about the company you are interested in, check every word the representatives say, look for the people they are talking about on social networks - sometimes you can find a lot of interesting things in photographs or in groups. Such a brief investigation may well save you nerves, time and money.

If you suddenly fail to earn the expected money, try to think: yes, you can make money in network marketing, but for this you need to have a special mindset and attitude. Perhaps it's just not your thing? There are people who cannot bring themselves to do mathematics - and this kind of work is simply not suitable for you.

This means that no one is forcing you to run to the next network company, in the hope that mountains of gold will begin to fall now - just return to your old place of work and try to console yourself with the fact that many people besides you also cannot stand such a race and refuse from “easy” earnings.

To make it easier for you to make a decision, I conducted a comparative assessment of 10 MLM companies using 13 parameters, which I tabulated for clarity. Since the table turned out to be quite cumbersome, full version will be available by subscription.

What is network marketing

MLM, or network marketing is a method of selling goods in which a network of independent agents is created who sell products and attract other agents.

MLM allows you to realize the concept "Home work" And "earn money on the Internet", however, the success of the implementation of concepts depends on the right choice network company (not all companies welcome independent work on the Internet).

This article discusses the main parameters of the offers of the most popular MLM companies in Russia:

  • Amway is a world leader in MLM selling cosmetics, household chemicals, vitamins, weight control products, tonic drinks, etc.
  • Oriflame is a Swedish chain company selling cosmetics, accessories and clothing.
  • LR is a German MLM brand specializing in body care cosmetics, perfumes, fashion accessories.
  • NL International is a Russian network company that owns 18 trademarks. This - balanced nutrition Energy Diet, sports nutrition, coffee, tea, dietary supplements, decorative and caring cosmetics, household chemicals.
  • Siberian Health is a domestic chain brand that produces cosmetics, balms, children's syrups and dietary supplements.
  • Tiens is a Chinese network company selling dietary supplements, decorative and caring cosmetics, and medical devices.
  • Faberlic is a Russian network company specializing in caring and decorative cosmetics and clothing.
  • Avon is an American chain company that sells decorative and caring cosmetics, accessories and clothing.
  • Mary Kay is an American MLM company that sells decorative and caring cosmetics.
  • Herbalife is an American chain company selling weight loss cocktails and dietary supplements.

Comparison of MLM companies in Russia

AmwayNL InternationalHerbalifeFaberlic
residentUSA, 1959Russia, 2000USA, 1980Russia, 1997
Price policyDistributor pricesingle pricedistributor pricedistributor price
price, % discountdiscount from 15 to 23cash-back from 10 to 34discountup to 35
Starting conditions (Activation)discount from 15% - registration, 23% discount - registration. fee 1500 rub. And annually -670 rub.4000r - cash-back 490r. purchases 20,000 rub. - 7,600 rub.Partner set - 2070 rub. Max. benefit - purchase of 5000 VP (1VP=70 rubles)4000 rub.
Business online, %15 35 17 34
reputation on otzovik.ru230 / 53 13 / 50 68 / 61 82 / 89
group volume8% - VAT4-21% 1- 5 % no data
Mentor BonusNoyes, 1000 rub.Noeat. difference between prices.
popularity
in Yandex
85079 160498 18400 191165
office, logistics16 offices.270 offices.no data40 offices.
The approaches of all companies are different, it is difficult to bring them to a common denominator, so clarify information about your companies in the comments. Your activity will allow you to change your position in the ranking!

Company's mission

The mission defines the values ​​that the company offers to society, customers and employees. In the MLM industry, the mission defines the marketing plan of a network company, which in turn serves as a business plan for developing your own network business. Analysis of the mission of organizations provides following results:

  1. Mary Kay and Avon have no place for men;
  2. Wu, Herbalife and Tienshi - there is no mission on the Russian-language website;
  3. Amway's Russian-language website either has an incorrect translation or its mission is not formulated for people. I can only assume that it is product-oriented;
  4. Oriflame, it seems to me, has an excerpt from the mission.

Conclusion: Before deciding to cooperate with companies from the numbered list, it is necessary to clarify the issue of Mission, since it will directly affect your income and success. I would not work with companies from point 2 at all.

Country of origin

Any company is a resident of the country in which it is registered as a legal entity. Typically the market home country is the main market of the MLM company. The company will remain in its native market until the end!

In business practice, there are often cases when companies leave secondary markets, closing the business completely or leaving a small representative office to monitor the market. So, in present period, OPEL, CHEVROLET, HONDA, have curtailed or significantly reduced their business in Russia.

The second important factor in the location of the headquarters is an understanding of the mentality of secondary markets and the ability to adapt to the rapidly changing realities of these markets. It is obvious that a domestic company will adapt to changes in its “native” market faster.

Conclusion: Based on the “resident” criterion, it is preferable to choose a domestic MLM company.

Price policy

Distributor price— the price at which a networker buys goods from his company. There is also a catalog price - at which it is recommended to sell the product. This business scheme has three serious flaws:

  1. The product inevitably passes through the hands of the networker, i.e. checkered (or other) handbags and “no sales agents allowed” are not going away;
  2. The goods have to be sold at a discount, since it is not customary for us to profit from our own. The amount of the discount depends on the professionalism of the entrepreneur. For beginners, the discount is higher and they naturally earn less;
  3. As the product passes through your hands, it is inevitable to go through sales, which many try to avoid.

Single price policy- is devoid of these shortcomings and allows you to focus on additional income and building your own business. This policy is used by one company from the list - NL International.

Conclusion: quick income in NL International is easier to realize, especially for beginners.

Price and activation of a contract in MLM

The price and quality of MLM products are higher than those of competitors of the traditional (linear) distribution system (read). The inflated price is compensated by a system of discounts and the opportunity to develop a network business.

Activation of a contract in MLM- this is a confirmation of the seriousness of business intentions and increased competence in the assortment of the network company. You can read more about activation!

For an MLM distributor, the product costs 10 - 45% cheaper. The most generous offers are from Mary Kay, LR, Faberlic. The stingiest ones are Siberian Health, AVON, Oriflame.

Business entry (activation) is less expensive with LR and Amway. Tiens and Herbalife have very high barriers to entry.

Conclusion: the most interesting conditions for entering the business are offered by LR and Mary Kay.

Mentor Bonus

What is a Mentor Bonus?— this is the fee for attracting new entrepreneurs to the MLM structure. This type of reward is very relevant at the start of your network activity, allowing you to earn money immediately and practically from scratch. The mentor bonus is paid only to active managers. In the list studied by NL International and Mary Kay, the mentor bonus is clearly formulated. At Faberlic, it is present as the difference between the prices of the sponsor and the newcomer, at LR and Siberian Health - these are gifts, dinners and travel (which are very vaguely visible at the start).

Conclusion: choice in descending order - NL International, Mary Kay, Faberlic, LR, Siberian Health.

Income per group volume

This is the largest type of income in MLM, the whole “salt” of network marketing. Since the topic of the article is to help beginners in choosing an MLM, I only consider group volume in starting qualifications. It will be difficult for you to make money when starting out in LR, Herbalife and Tiens. You get a profitable start with NL International, Faberlic and Mary Kay.

Conclusion: the best offers are given (in descending order) by NL International, Faberlic, Mary Kay.

Business online

The extent to which an MLM company is liberal in relation to the independent promotion of its managers on the Internet, the implementation of the concept will be successful. "Home work" And "earn money on the Internet".

The methodology for calculating this parameter is as follows: the ratio of private pages of managers (websites, pages on social networks, pictures, advertisements in Yandex, etc.) to the total number of responses by company name in the search, as a percentage. The higher the value, the more liberal the MLM company is towards the Internet.

The worst indicators are for American companies Amway, Herbalife, Avon. The best results are from Tiansha, NL International, Faberlic. A clear illustration of the current restrictions are profiles on Instagram - where there are restrictions, you will see a palette of advertising blocks instead of content.

Conclusion: Your online business potential will be significantly limited in American companies and capable of organic growth in Russian ones.

MLM reviews (reputation)

My research into MLM reviews is based on an analysis of materials from Wikipedia and Otzovik.com. Links to information about those companies for which there are materials were taken from Wikipedia. The reviewer provides live information about the interaction of MLM companies with people.

Almost all companies have positive reviews about the quality of their products. Negative information concerns three aspects: inflated promises/expectations; easy money, easy to earn and persistence, which turns into obsession when recruiting candidates.

According to Otzovik, the numerator is the total number of requests, the denominator is the percentage of positive reviews. The leader is Faberlic (it is worth noting that this company has a lot of laudatory reviews from the Prokopyevsky district of the Krasnoyarsk Territory - i.e. I do not rule out cheating). The rest of the companies are in a tight group, with the exception of Tianshi - an extremely negative attitude of respondents associated with misleading and extortion during recruiting and other nuances.

Conclusion: I would not cooperate with Tiens, Herbalife.

Popularity of search query in Yandex

In terms of search queries, Avon is the leader by a wide margin. The company's popularity is based on the democratic nature of their price segment and a large base of potential consumers with low incomes.

Conclusion: Avon is a business for women by a threefold margin.

Infrastructure

An office is like the flag of a military unit. If it is there, there is a team and there is regularity of business; if it is not there, it is partisanship. It’s easier and less expensive to meet and hold team events in the office (than, for example, in a cafe or on a bench in a park in winter).

As a rule, logistics are tied to the office—order pick-up points, stores. The shorter the path from the product to the buyer, the fewer errors and misunderstandings occur (wrong product, complaints about quality and quantity). The factor of impulsive purchases, with long delivery times, what is desired at a given time can cause disappointment and the departure of newcomers.

Having an office is a solid business and a guarantee that the company is aimed at long-term success and cooperation.

MLM Companies with their own network of offices (more than 11): NL International, Faberlic, Oriflame, Siberian Health, Amway.

Companies with few offices (less than 11): LR, Tiens, Mary Kay, Avon, Herbalife.

Conclusion: Implement your business idea for a small town It’s easier with NL International (270 offices) and Faberlic (more than 40).

Rating of MLM companies in Russia

After analyzing and digitizing the initial parameters, we obtained a rating of the attractiveness of cooperation with MLM companies. When I made my choice in MLM, I did not find such material, I hope it will be useful to you.

Rating of MLM companies in Russia

MLM CompanyPosition in the ranking
NL International1
Faberlic2
Mary Kay3
Siberian Health4
LR5
Avon6
Amway7
Oriflame8
Tianshi9
Herbalife10
You can get the full calculation methodology by subscribing to the news!

Conclusion: Every company has its own millionaires. The question is their quantity. What is important is your desire and decision to succeed in this difficult matter. The rating only tells you where you can get the desired result faster. The choice is yours!

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Traditionally, on the first Sunday of December in Russia, Networker Day is celebrated - a holiday for everyone involved in network marketing and direct sales. On this occasion, we decided to recall the most famous MLM companies and understand whether multi-level marketing is a serious competitor to retail.

Not a weak link


Multilevel marketing (MLM) is one of the direct sales methods. With it, the sale of goods is carried out through a network of independent agents, each of whom can not only sell the company’s products, but also attract partners for this. In this case, his income will consist of his own income and a percentage of the income of the people he hires. Another name for the system is Network Marketing, which translates as “network marketing”.

Profits from direct sales for distributors are quite low. They give most of the proceeds to the company and the distributors above them. The main profit comes from sales of sponsored distributors.


MLM companies are often confused with “financial pyramids” such as MMM or Khoper Invest. Indeed, “pyramids” took the principle of network marketing as a basis.
Participants who stand at their origins receive money from the contributions of “newcomers”. But, unlike network companies, “pyramids” do not offer specific goods, but essentially trade in air. The life cycle of “financial pyramids”, as a rule, is no more than several years - they exist only as long as new investors appear. While large MLM companies have been successfully operating for decades, they bring small but stable incomes to the lower levels, and billions to those who are at the origins.

Explorer Carl Rehnborg


The history of the creation of MLM companies is associated with the name of entrepreneur Karl Rehnborg. In 1927, he opened a small trading company food additives own production. At first, Rehnborg sold the products to acquaintances, and they, in turn, shared rave reviews with their friends.

And there were those willing. In 1934, Carl Rehnborg founded California Vitamins, which was later renamed Nutrilite Products. Very quickly the company achieved a turnover of several million dollars without spending a single cent on advertising - only through direct sales.

To this day, the most popular products sold through MLM marketing remain nutritional supplements and cosmetics.

AMWAY


Amway (American Way of Life) was founded in 1959 by Nutrilite Products employees Richard DeVos and Jay Van Endel. They decided to slightly change the operating principles that Nutrilite used. First, Amway began selling different groups goods. In addition to dietary supplements, the assortment now includes many household chemicals and cosmetics. The company now offers over 3,000 items. Secondly, DeVos and Van Endel introduced a multi-level marketing plan for employees and began to pay remuneration not only from personally recruited distributors, but also for sales volumes of agents at all levels. This led to Amway's rapid growth.

Now the company's turnover is over $8 billion, and it ranks 25th among the largest private companies in the United States according to Forbes. True, the history of Amway is not cloudless. More than once she became a participant in scandals. Thus, one of the company’s former top distributors, Eric Scheibeler, who was personally acquainted with the founders of Amway, in his book “Merchants of Deception” accused the corporation of fraud and called it a totalitarian sect. This is not the first time Amway members have been accused of sectarianism. The company's training methods have been criticized more than once.

AVON PRODUCTS


The “long-liver” among MLM companies dates back to 1886 with a small company called California Perfume. It was created by American David McConnell. Initially, the company's assortment included only 5 types of simple perfumes with floral aromas. Now AVON offers hundreds of items of cosmetics, perfumes, jewelry and accessories. The company's turnover is about $10 billion a year, and the number of distributors around the world is in the millions.

Why McConnell is not considered a pioneer in the creation of MLM enterprises - history is silent. Perhaps the fact is that although the company used the principle of direct sales from the beginning of its existence, it did not immediately come to a multi-level scheme. But AVON has gone down in history by being the first of the cosmetic giants to abandon testing of products on animals.

MARY KAY


Another American corporation. Created in 1963 by Mary Kay Ash and named after the founder. Offers hygiene products, cosmetics and perfumes in the mid-price segment. In 6th place in the world among companies engaged in direct sales according to 2012 data.

The trick of Mary Kay is that its consultants do not just sell products, but act as “beauty consultants.” That is, they undergo basic training in skin care. The second feature is that territories are not assigned to a specific consultant: they can hire their agents anywhere in the world.

Like Avon, Mary Kay stopped testing its products on animals in the early 90s, but resumed testing in 2010. For which she was severely criticized by the “greens”.

ORIFLAME


The Swedish cosmetics company Oriflame was founded in 1967 by brothers Jonas and Robert af Jochnick. In the early years, only one line of products was sold, now the range includes about 1000 items of cosmetics and perfumes. The annual turnover is about 2 billion dollars, the number of consultants in the world is over 3 million people.

Oriflame positions itself as an environmentally friendly company and even prints its catalogs on paper made from artificially planted forests. Therefore, Greenpeace does not attack the company much. But she came to the attention of the tax authorities. In August of this year, the Russian representative office of Oriflame failed to pay taxes for several million rubles.

FABERLIC


The first Russian MLM company was created in 1997 by entrepreneurs Alexander Davankov and Alexey Nechaev. The original name was “Russian Line”, the Faberlic brand was registered in 2001. IN currently the company operates in 20 countries, including Poland, Germany, Romania and Hungary.

The company considers its know-how to be “oxygen cosmetics” - face and body care products based on perfluorocarbons. Faberlic's turnover is now over 250 million dollars a year.

KIRBY


The company producing and selling vacuum cleaners is celebrating its 100th anniversary this year. It was founded in 1914 and is named after the developer of the first vacuum cleaner models, Jim Kirby. The company’s “trick” is that at a certain period it sells only one model of vacuum cleaners. Once a model becomes obsolete, it is discontinued and a new one is sold.

Kirby is the most scandalous representative of the MLM diaspora. Every year, US consumer protection agencies receive dozens of complaints about improper actions of the company's distributors. Allegedly, they use harsh psychological pressure to force the client to pay money for expensive equipment (for reference, the price of a Kirby vacuum cleaner starts from 100 thousand rubles). Russian forums are also full of messages: “Kirby vacuum cleaners are a deception, a scam, a scam!” However, the company continues to operate in Russia and in 70 other countries.

HERBALIFE


Founded in 1980 in the USA, it offers weight loss products, healthy eating and skin care. The international division of Herbalife is now led by former Disney CEO Michael O. Johnson, and scientific developments in the field of skin care are led by Paolo Giacomoni, who previously worked at Estee Lauder and L’Oreal.

Herbalife is the first American MLM company to open a representative office in Russia. This happened in the early 90s and coincided with the emergence of a huge number of financial pyramids in Russia. Therefore, many still mistakenly classify HERBALIFE among them.

The debate about whether MLM business is good or bad continues to this day. Some praise multi-level structures, seeing in them opportunities for quick money, others condemn the very principle of building pyramids. Business analysts also disagree. Some predict that direct sales will soon supplant traditional retail, while others believe that retail and e-commerce will eventually kill MLM. However, network marketing has been around for decades and is not about to go down yet.

Alena Yarkova almost got caught online
Illustrations by Dmitry Shevchuk

FM GROUP is a promising company with an image, authority in the World and only in 2014 I officially entered the Russian market and began opening regional representative offices. Partners with experience in the MLM industry are actively joining the company.

What is the secret of FM GROUP's growth in Russia?

Leaders are attracted by international marketing, which is uniform in all countries, allowing them to create businesses in all countries where the company is represented (more than 40 countries). Receiving a % of the company’s turnover allows you to have income not only from the work done by the leader’s structure, but also from the work of all the leaders of the company.

Since there are no international-level perfume companies on the Russian market, for many, this is an opportunity to become the first in the region and attract leaders of small companies into their business.

♦B A large number of customers choose FM GROUP products based not only on quality, but also on price! (the company has its own production, which significantly reduces the cost of FM GROUP products on the market).
And the presence of clients from the company guarantees stability for partners!

The TOP 100 included the following companies:

1 Amway USA
2 Avon USA
3 Brain Abundance USA
4 Empower Network USA
5 FM Group Poland
6 GanoExel Malaysia
7 Isagenix USA
8 ItWorks! Global USA
9 Jeunesse Global USA
10 Kyani USA
11 LifeVantage USA
12 LR Health and Beauty Germany
13 Mary Kay USA
14 Monavie–Mynt USA
15 Morinda USA
16 Nature's Sunshine Products USA
17 Nerium International USA
18 Nikken USA
19 Nu Skin USA
20 Organo Gold Canada
21 Oriflame Sweden
22 Qnet Malaysia
23 Sisel International USA
24 Skinny Body Care USA
25 Stemtech USA
26 Talk Fusion USA
27 Synergy Worldwide USA
28 USANA Health Sciences USA
29 Vemma USA
30 Visi USA
31 WOR(l)DGN USA

There is an expression in MLM “to sit on the tail of a brand”, this means that a branded company has: name, demand for products, proven reward system, leadership team! And “sitting on the tail” of such a company, new partners put less effort into promoting products, the company and their business, which means they achieve results faster and more efficiently!

By choosing the FM GROUP company, you are choosing a reliable partner for business in the MLM industry. Join us!

The number of distribution companies specializing in MLM is increasing every year. This is due to the fact that this business is profitable and quickly generates income. It’s easy to do without even leaving your home. If you study in detail the basics and concept of MLM marketing, you can achieve excellent results in just 2-3 months.

What is network marketing

MLM business is a multifaceted concept that opens up many prospects. It implies the concept of selling services and goods, based on the formation of a network of independent sales agents who not only sell products, but also have the right to attract new partners who will be endowed with similar rights. The income of each networker is formed from commissions from product sales and additional remuneration (bonuses), which directly depends on the volume of personal sales of attracted sales managers.

History of Network Marketing

Karl Rehnborg is considered the founder of the MLM business. He developed ideas that later turned into an entire industry with huge multi-million dollar turnover. In 1927, in the USA, Rehnborg began working hard on creating nutritional supplements. He distributed the developed drugs for testing purposes free of charge to his friends, who subsequently refused to take them.

After Karl realized that free things were not valued, he began selling dietary supplements: the results were not long in coming. Information about the drugs spread quickly, and the number of people interested in them increased. Karl Rehnborg could not independently satisfy the requests of all clients, so he had to come up with a new scheme. He invited his friends to provide information about dietary supplements, and, subject to successful sales, promised to pay commissions. The history of network marketing began with these events.

In 1934, the first major company, California Vitamins, was founded by Carl Rehnborg. It operated a sales system in which the consumer of a product became its distributor. In 1939, the marketing company was renamed Nature's Sunshine Products, but the principle of drug distribution remained the same. Network agents independently attracted new clients to cooperation, advised them, drew up sales plans, came up with individual sales schemes, and offered to create their own network.

The MLM company fully provided networkers with goods and paid commissions on time. This is how a new definition appeared in MLM - single-level marketing. The business story did not end there: a new round was set by the American Way Corporation (abbreviation Amway), created in 1959 former employees Nature's by Jay Van Andel and Rich de Vos.

What is the merit of these people in the development of MLM business? They began to sell not just one product, but several. The list of products offered to consumers has been expanded with food additives, chemicals for household and household goods. Soon, network marketing companies appeared on the world market. They began to operate successfully in Russia, China, and England. Their importance has become enormous both for people and for the economies of many countries.

Types of Network Marketing

The MLM business is developing rapidly, and its varieties are becoming more diverse every year. The main types of network marketing are as follows:

  • Puff marketing (the most popular, adapted to the Russian market, its striking example is companies selling cosmetics - Avon Products, Faberlic, Mary Kay, Oriflame. The essence of this type of marketing is that the company’s concept is based on the work of certain layers of employees at several levels.
  • Pyramid. This type of marketing involves the following scheme of work: there are founders who find several people selling services and goods, they subsequently find several more people and control their activities, and so on ad infinitum.

How does network marketing work?

Principle of operation Russian companies MLM is the same:

  1. First, a person undergoes an interview, during which he is introduced to further prospects and emerging opportunities.
  2. Then the person is told that he must, using the network, attract new people, the greater their number, the greater his monthly income.
  3. How does network marketing work? New employees, becoming distributors of the company, independently promote it, for which they receive commissions, contributing to their own development and the development of the business.

The essence of network marketing

What is MLM (multilevel marketing), what is its essence? This is one of the most popular and effective ways to legally promote services and goods. MLM companies offer unique products that are becoming in demand both in individual cities, regions, countries, and throughout the world. MLM business is not only about direct sales. To succeed in this field, you don't have to sell anything.

The main components of multilevel marketing are well-organized intellectual distribution, efficient use all its possibilities and advantages. In other words, the main essence of network marketing is that consumers, being at the same time partners of a company, develop its network and make a profit from turnover.

Network Marketing Principles

MLM business is based on following rules:

  • equality for all;
  • helping others;
  • minimum entry costs;
  • availability of residual income;
  • pyramid structure (this principle of network marketing ensures the constant development of the business and its stability).


Network Marketing Structure

Running through the MLM business and not noticing the main thing, many never achieve the desired results. Why? Because they don’t know how to properly build a network marketing structure. What is structure? These are people who take part in organizing trade turnover, and the final income directly depends on their number. It may include acquaintances, friends, complete strangers. The main task is to skillfully unite them and constantly motivate them for successful advancement.

Network companies

There are many companies that specialize in MLM business. They sell cosmetics, chemicals, household appliances, household goods, and other products. A detailed list of network companies operating successfully in Russia is given on the Mlmbaza website, the most popular:

  • Life;
  • Oriflame,
  • "Siberian Health";
  • Faberlic;
  • Avon;
  • Primerica;
  • Shaklee;
  • Talk Fusion;
  • Nevers;
  • Vitamax;
  • Zepter International;
  • Kirby;
  • Atistek;
  • Lurk;
  • Pravda.

Working in network marketing

Anyone can try their hand at multi-level marketing business. Companies provide training in network marketing, but not everyone can master this profession. A distributor of an MLM company must be able to organize the sale of products and draw up schemes for the effective distribution of services and goods. The profession obliges you to attract new partners, expand your client base (network), apply intellectual resources, use the network, and set up a system that will generate income directly for the company and the networker.


Network business on the Internet

The World Wide Web opens up incredible opportunities for networkers. Using her gifts, you can make a fortune without leaving your home. On the Internet, products are promoted through their own websites, information groups, blogs, and communities. The main task of the distributor is to find the target audience, create an effective information distribution network, and constantly improve and develop it. Network business on the Internet has the following advantages:

  • the ability to conduct business from anywhere in the world;
  • the ability to attract potential partners from any region, city and country;
  • many information programs that provide prompt assistance in solving organizational issues, conducting education and training;
  • the ability to sell through online stores with an integrated order basket;
  • possibility of learning online.

How to make money in network marketing

To achieve success in this business, you must follow a few simple rules:

  • be a sociable person who is not afraid to approach strangers with a proposal;
  • be able to interest, present products in a bright and unusual way;
  • actively involve your relatives, acquaintances, and colleagues in the matter;
  • constantly improve yourself, increase your intellectual level;
  • skillfully build a pyramid by attracting new people in order to not only earn commissions from sales in network marketing, but also provide residual income.


Cons of Network Marketing

Before starting a career as a distributor, you need to familiarize yourself with the main disadvantages of the MLM business. This is the only way to understand how correctly the direction of activity has been chosen. List of disadvantages of network marketing:

  • unstable income;
  • great moral stress, constant pressure from clients;
  • the need for material investments;
  • high level of responsibility for the people involved.

Benefits of Network Marketing

MLM marketing has both its pros and cons. He teaches how to receive unlimited income, which depends on the aspirations and character of a person. Another advantage of network marketing is financial independence. Network agents have a free work schedule, plan their day independently, make decisions, gain new skills, the opportunity to develop socially, and improve their status. These advantages cover all the disadvantages of this type of activity.

Video: how online business works

I provided statistics on search queries on the Internet using the Yandex Wordstat service. Much water has flown under the bridge since that time. How are things going four years later, in April 2016, I wonder?

This time I slightly changed the rating conditions. Last time I analyzed the popularity of companies based on people’s interest in them from the point of view of cooperation. Therefore, I studied mainly search queries using the key phrase “” when it came to Faberlic statistics.

This year, I decided to analyze search statistics for higher-frequency queries and used only the company name in the query.

For those who do not quite understand what the Yandex Wordstat service shows, I’ll explain a little.

For example, you are interested in how many people enter queries into Yandex with the word Faberlic. Type the required keyword in the statistics line and get the number of impressions with this word. In the picture we see that over the last 30 days there have been 947,453 requests in Yandex containing “Faberlic”. The Yandex statistics service takes into account all requests with the word Faberlic: “how to become a Faberlic consultant”, and “Faberlic catalog”, and “”, and many others.

Thus, it turns out that the higher the numbers in statistics on keyword or phrase, that more people are interested in this phrase on the Internet. Accordingly, we can conclude that the more people on the Internet are interested in the Network Company, the more popular it is among the population. Of course, for a more qualitative analysis, it would be good to have data on turnover, dynamics, product range, know the average bill, the number of consultants and consumers. But unfortunately, network marketing companies in Russia do not publicly post such data. Therefore, we will operate only with those numbers that are available to us. In addition, these figures quite realistically reflect brand recognition and popular love.

As a result of statistical research, the following results emerged:

The table shows only companies that received more than 100 thousand search queries per month in Yandex. Pay attention to the significant gap between the top three.

Now let’s compare how the statistics on key phrase"registration in the company."

In this table, I was primarily interested not in the ratio of numbers between companies, but in the dynamics. She's impressive. If in 2012 only 824 people were interested in registering with Faberlic, then in 2016 there were already 3,643 people. An increase of 324%. And this is for almost all of the leading companies in the rating. Thus, we can conclude: more and more people use the Internet to shop and obtain the necessary information.


Network sales in the Russian Federation are the most developing area business. About six percent of our fellow citizens do this, and the number is constantly increasing. The number of officially registered companies engaged in network marketing is 500, and in 2011 their turnover exceeded 4,000,000,000 euros. Sales volumes are increasing every day.

How does network marketing work?

The way network marketing works is very simple. The employees' job is to effectively sell the products the company produces.

But in order to increase the number of sales, these companies come up with various programs that interest employees to work. For example, first of all, motivation lies in financial support, in particular, if an employee sells a large number of products, then the payment increases. In addition to selling products, new participants must build their own “network,” that is, look for people who will cooperate with the company; for attracting customers, the employee receives a variety of rewards and bonuses.

Network activities in the Russian Federation

When engaging in network marketing in the Russian Federation, you need to take into account some factors: economic, technical and social, as well as the culture of our citizens. How do you know which companies are more suitable?

First you need to analyze the hundred largest ones. This list is completely ambiguous, because everyone’s sales numbers are completely different. Only 80% of them have good profits, while others are just starting their activities, or their products are not in demand by our citizens. Here are the most famous network companies operating in our country and making good profits: Avon, Oriflame, Amway, Mary Kay, Faberlic, Tiens Group, Tupperware, Tentorium, Zepter International, Mirra.[

From this entire list, it is necessary to highlight the companies Avon and Oriflame, which sell more than half of the total volume of products of this type. In third place is Amway, which sells almost half as many products.

In recent years, there has been a decrease in the number of sales of companies, this is most likely due to the fact that the structure of the companies itself has changed, or they began to sell a completely new product, which many still do not know about. But such changes can very soon lead to great demand and increased sales.

What else could cause demand for the products of these companies to decrease?

Of course, it should be noted here that the products that MLM companies sell are essential products. Every person, first of all, needs to pay for housing and communal services, buy food, and only then can he think about how high-quality shampoo, soap, etc. he uses for hygiene. In addition, customers of these companies stopped buying their products due to the difficult economic situation in the country and the world.

What does a person who wants to succeed in network marketing need to know?

The first thing to do is detailed analysis such companies, choose the more famous and popular one from them. There is no need to start working in a company where sales have recently decreased by twenty percent or more.

Another factor is how citizens view the company. In the Russian Federation today there are no laws that regulate the activities of MLM companies. Of the 500 companies operating in our country, only twenty are officially registered.

If you take into account all the above factors, you will have no worries about working in network marketing. But success will directly depend on your qualities and character - hard work, communication skills and the ability to convince a person that the product is extremely necessary for him. All this can make you a sales network leader.

For the first time, companies engaged in network sales began operating in our market in 1993. At that time there were no more than ten of them. But every year this business expanded, and now there are 500 such companies. For some citizens, network marketing is now the main source of income. Some are happy with a free schedule, others are happy with communication with clients, as well as career growth and good earnings. Now there are more than 5,000,000 distributors in our country, with 20,000,00 clients.

Main evaluation criteria

The product offered by the company must be safe for human health and have an acceptable cost. Its use should bring quite real results. Working hours. It is best to work with a company that has been on the market for at least 5-6 years. Since, if this is a financial pyramid, then it will not work for that long; in addition, according to statistics, about 80% of such organizations stop working during this period. She must also be quite famous. To operate in the international market, it must have a developed network in at least three countries.

In addition, she must conduct business legally and have a legal address in the state where she operates.

The largest network organizations in 2015
1) Amway its profit is 10,700,000,000 dollars.
2 Avon Products revenue $8,900,000,000.
3 Herbalife Ltd profit 5,000,000,000.
4 Mary Kay Inc with a profit of $4,000,000,000.
5 Vorwerk & Co. KG with a yield of $3,800,000,000.
6 Natura Cosmeticos SA whose profit is $3,200,000,000.

Network marketing: list of companies in Russia

Amway is an organization headquartered in Michigan (USA) and has been operating for more than 55 years. Representative offices currently exist in 80 countries. Offers its customers more than 450 health products that differ highest quality. When selling Amway products, the distributor receives about a 30 percent premium.
For large sales volumes, the participant will receive a bonus. By inviting new employees or customers to the team, the distributor will receive an additional bonus in the form of a reduction in the price of the products he sells.

Avon is a company with 120 years of history. It employs more than 5,000,000 workers in 100 countries. Products mainly for women (perfumes, cosmetics, jewelry and various accessories). Cooperation for VIP clients. Absolutely free registration and purchasing products with a 30% discount. The participant constantly receives bonuses.
Work as a coordinator. When attracting new workers, in addition to a 30 percent discount, he receives an additional 12 percent of the profit from the sales of the group he built.

Herbalife has been around for 35 years and sells its products in 92 countries. The products are mainly for people who need to lose weight and cleanse the body. To get started, you will need to purchase a distributor kit. When selling products, you will receive about 25 percent profit.

The distributor's activities are carried out by a supervisor. His profit from retail sales is 50 percent, and from wholesale sales - up to 25 percent.

Mary Kay has been doing network marketing for 50 years. The work is based on the principle of “Try before you buy”. The company's products are the best-selling, they allow you to provide high-quality facial care. Operates in 36 countries.
Mostly women over 18 years of age work here. To provide beauty consultations, you must first purchase a consultant kit. Consultants receive profit from the sale of products at presentations and master classes, when reselling goods and attracting new employees to their team. In addition, it is possible to buy directly here, this allows you to purchase goods with discounts of up to 40 percent, as well as receive a variety of gifts and receive training in makeup and basic business concepts.

Vorwerk – its history began 132 years ago. At first the company was engaged in the production of carpets and weaving equipment. Now she sells kitchen equipment and floor care equipment. Operates in 58 countries. To get the job, you will be offered training, which includes theory and training. The consultant can work at any convenient time, receiving profit in the form of a percentage of sales.

Natura is a company from Brazil that has been involved in network marketing for 44 years, focusing mainly on perfumes. The company's products are known all over the world. More than 1,000,000 distributors work here and sell more than 900 products for face and body care. Consultants and Advisors have a certain percentage of sales from their activities. In addition, there are incentives and various bonuses. The consultant can receive free course training.

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Good afternoon, my dear readers!

I am glad that you liked the competition, I see that you are active, I will be very pleased to give prizes to the winners! I also want to congratulate all women on the upcoming holiday of March 8th!

A few words about the competition! I remind you that, first of all, the number of reposts of articles in DIFFERENT social networks and the number of reposts of these posts from YOUR pages in DIFFERENT social networks will be taken into account, and I will also pay great attention to those who competently comment on articles and solve crossword puzzles. Wish you luck!

I continue to fulfill my promises to you, dear readers. In the comments to the article “Earn money on the Internet. Myth or reality? Part 1,” I promised that I would cover the topic of multi-level linear marketing (network marketing, multi-level marketing, in the text below for simplicity I will simply write MLM) in more detail. The topic is interesting, relevant, and very common today.

Network Marketing Companies

I’ll tell you right away that I will write about MLM companies, and not hype projects, which you can get acquainted with in another article if you wish.

What can I say? And you can talk a lot, a lot on this topic! I am sure that on the Internet, business and in life in general, there will be a huge number of people who will say that MLM is good and there will be those who will tear their shirts open and say the opposite!

We are all different, we all have had different experiences, we all have different understandings of this business. Personally, I have a very good attitude towards MLM, but I am not a fan of it in life. I like the products of many MLM companies, I use them often and I am very glad that this business is spreading across Russian expanses.

It’s not for nothing that I named the article MLM. Good or bad? Today I want to explain why people can see different sides to this business, I will try to guide those who want to do it, I will give examples from my life and my experience.

I want you to understand one thing - THIS BUSINESS WILL BE WHATEVER YOU WANT IT FOR YOURSELF!!! Because in every aspect of this business there are pros and cons, and only you decide what you see!!! So let's get started, hang in there :)))

MLM business - what is it?

FREEDOM OF ACTION AND INDEPENDENCE.


MLM business is, first of all, freedom of action. No Monday, no boss, no alarm clock. It gives us the opportunity to work whenever we want - morning, evening, night; work when we are in the mood, and that is when we are actually productive, it is in these moments that we are most effective.

Technologies are developing exponentially and this business is moving to the Internet, which means that MLM gives us the opportunity to work where we want - in the office, in a home chair, near the pool in Pattaya or while traveling :)))

You can work in jeans, sneakers, shorts or a house shirt. Isn't this the desired freedom of action that everyone dreams of? Working in such a business, we are full-fledged masters of our own time and our own lives. Isn't that cool? Isn't this what we should strive for? This is the dream of millions of people!!!

FREEDOM OF ACTION AND INDEPENDENCE???


Is it true? What are you talking about??? Have you ever worked in a network company, ever developed it??? Freedom? - No, have not heard.

Dear friends, what kind of freedom are we talking about? In this business you have to work hard day and night... DAY AND NIGHT!!! If you want results, make money.

You need to INVITE new people into the business, SELL the product, HELP your invitees in all possible ways - teach how to communicate with people, teach all technical aspects (marketing, product, etc.).

You need to be able to work with objections, both from customers, and from partners, and from competitors. You need to know absolutely everything about the company, product, marketing, your structure, control absolutely everything - this is the only way to achieve something in this business. And you don’t need to tell me that I will invite two people and will only work with them, keep these utopian tales for yourself!

You need to work for the first time (it may not be one or two years) 15-20 hours a day!!! This is normal, you are free :))) This is MLM :))) It’s already more fun, let’s move on!

EDUCATION.


This has always been a “trick” of network companies. Training, training schools, business trainings, seminars. Various major events that attract people from all over the country, and even the world.

This is what most people go for :))) And they do it right, the main thing is to choose the right company with an interesting policy and a person (sponsor) who will lead, guide and mentor you, especially since he is directly interested in this.

All public events are, first of all, acquaintances, new contacts, new connections, new experiences. It is very interesting to communicate with like-minded people, find out their life positions, worldviews, promotion tools and much more. The people leading such events are most often very highly qualified professionals, you will definitely have a lot to learn from them.

Such events usually charge you with energy, and after them you want to work with even more strength and enthusiasm. This is why MLM companies conduct them, so that partners (distributors) do not lose their zeal for work, develop themselves, and develop the company accordingly.

EDUCATION???


Have you personally attended the training of famous network companies??? (What follows will not be about all of them, but at least about 80% of the companies; I won’t say the names). Have you heard what business coaches and psychologists talk about, who, as a rule, do their jobs well??? Do you understand that this is just basic brainwashing of your brains???

Some companies will take very decent money from you to wash YOUR brains. It could be 20,000 rubles or 50,000 rubles, or more. The fact is that people present at such trainings, as a rule, do not and will not earn half of this money per month, because the company’s marketing will allow you to earn so much if your entire area uses only your products :)))

DON'T BE A ZOMBIE!!! This is from personal experience! Speakers and trainers at such events know the basics of public speaking, human psychology and basic skills of influencing the subconscious and nothing more, and everyone sits and clap, how cool!!!

DON'T BE A ZOMBIE!!! Are you lacking motivation??? Are you unable to motivate yourself??? If not, then there will be no place for you in any business!!! This is MLM, guys :))) Everything is not simple here :))) It’s not only more fun, it’s already getting hotter :)))

FINANCIAL FREEDOM.


Of course, the main advantage in a network business remains the opportunity to have passive (residual) income. All work comes with this idea, and it is quite real: create a business, create a network of distributors, sell goods and earn income.

An MLM business can become a business for years, decades! It can be passed on by inheritance. At first it’s hard, and then everything starts to grow like a snowball, because the number of partners grows and the income grows accordingly.

Many American billionaires, even those like Warren Buffett, advise newcomers to start a business in online companies, where there is an idea of ​​financial freedom, a good training system and a quality product!

In general, such a business does not mean quick earnings, but stable and constantly growing ones, so it is suitable for those who want to steadily move towards their goal - financial freedom and independence.

FINANCIAL FREEDOM???


Are you kidding me??? What amazes me most is that absolutely all networkers and network companies talk about this! Do you know what % of distributors earn more than $1000 dollars per month from network companies? 0.5% -1.5%!!! This is even less than the percentage of linear business entrepreneurs who are trying to start a business and achieve such income

Business for years, decades, children, maybe grandchildren??? Why are you deceiving yourself first??? Please tell me what% of network companies remain on the market after 10 years of operation??? About 2%, which means that out of 100 companies there are only 2 left!!! Are you sure that your company is in this two???

There was the USSR, now the CIS countries, there were some rubles, now there are different ones, no one knows what will happen to financial system in a year or two or three... what business will you leave to your grandchildren??? Do not make me laugh!!! It's getting even more interesting and hotter. Just forward.

PRODUCT.


The product in MLM companies is mostly of high quality. Because, whatever one may say, the emphasis will have to be on it, it needs to be sold first of all, and not the business model, only then will the company live and prosper!

I myself personally use the products of several network companies, I admit honestly. I have Amway products and just the other day I bought almost the entire line of Herbalife sports nutrition. The quality is excellent, there’s nothing to complain about :)

It is very rare that an MLM company’s product is of poor quality; I have almost never come across it, so use it with pleasure and be healthy!

PRODUCT???


Can you imagine what the markup is for this product??? In addition to the fact that the company itself makes money from sales, imagine how much more is built into the network. Can you imagine how much is included in the network???

Referral, binary or line for many levels - where are all these bonuses included??? Of course, in the product! The price is several times higher! It’s easy to find a product of the same quality, or even better, from companies that work according to a standard principle!!!

I have always been amazed by one question: why do almost all network companies have the same sales profile??? But why??? Do you have enough brains or should I send you a list of other industries???

Dietary supplements, cosmetics, household chemicals... and now, I told you 80% of modern network companies! It's a pity that everything here is so sparse :)

MLM on the Internet

So, my dear readers, I know that there will be criticism about my words, so I am ready to enter into dialogue with pleasure.

I went over the main points of this business, but the essence should be clear to you! I think I was able to get my point across to you. MLM is what you decide: first or second, no more, no less! Download my book “”, it will help you decide on the path you want to take.

Don’t forget about the “Most Active Blog Reader” competition, which is currently taking place, the main prize is an iPad, as well as cash and valuable prizes!

Two important articles are required for your attention!!!

You might also be interested in a recent interview with a professional web designer.

And as it has already become a habit - a crossword puzzle for you, use your brains, it won’t be superfluous!

Updated: crossword puzzle solved! Winners:

5 points - Evgenia
4 points - Armat
3 points - Anna
2 points - Timur
1 point - Roman

I repeat: the main condition for participation in the competition is reposting the article on any social network. network and the number of likes and reposts already from your page. Therefore, a prerequisite for participation is to provide a link to your page on social media. networks and links to the repost itself.

A detailed article about what network marketing is, what the three letters “MLM” mean, what advantages and disadvantages such a business has, how they make money from it, recruit distributors, why this type of activity is dangerous and why you should not become part of a “pyramid”.

The network marketing journey began in 1945. Its foundations and principles were laid in America by two entrepreneurs, William Casselbury and Lee Mitenger. A similar field of activity came to Russia and the CIS in 1990. Since then, millions of people have been doing it and new network companies are opening.

Despite the fact that this type of business is widespread, many do not fully understand what network marketing is, what advantages and disadvantages it has, and why it is dangerous. This is exactly what will be discussed below.

What is network marketing and what does the abbreviation MLM stand for?

Network marketing is a type of business that is built on selling various products and attracting sellers. The seller of the product receives income from each attracted seller. The seller, in turn, attracts new sellers and already has his own percentage of profit from them.

If you look at the entire structure of such a business, it will have the shape of a pyramid. And the one who is at the top earns the most.

The abbreviation MLM stands for Multi Level Marketing, which means multi-level marketing. In common parlance this is called a “pyramid”.

Network marketing most often uses products that cannot be found in regular stores. These could be dietary supplements, kitchenware, cosmetics, etc. A striking example of this is the famous Oriflame or Faberlic - products of these brands cannot be found on store shelves. Moreover, 90% of goods are produced outside the CIS.

At first glance, network marketing may seem quite in a simple way making money. Yes, some millionaires and billionaires claim that it was through MLM that they made their fortunes. However, most people, not only in Russia and the CIS, but also in the world, avoid this dubious activity. And there are reasons for this. But we will talk about them below. To begin with, it is better to consider all the positive and negative aspects of network marketing.

The light and dark side of network marketing

It's first worth demonstrating the benefits of network marketing to understand why it still exists.

Benefits of MLM

  1. Anyone can get into network marketing. No experience needed for this special education, registration of business activities and other points necessary for traditional business.
  2. Network marketing can become an additional source of income - small, but still. This is a good option for students or mothers on maternity leave.
  3. The unlimited earnings that people at the top of the “pyramid” talk about really exist. But few people, even just a few, can earn good money through network marketing. To earn decent money, you need to be a purposeful person who knows how to approach people, and have a lot of free time in your stash.
  4. Financial freedom is also present here. It lies in the fact that the seller has no bosses, and profit depends only on himself. Freedom also means the absence of a work schedule - you can work whenever you want. However, financial freedom should not be taken literally. Rather, it consists of not depending on the wallet of your parents, relatives or husband. And this does not guarantee a complete absence of money problems.
  5. Network marketing gives you the opportunity to try yourself as an entrepreneur and open your own business, which you need to promote yourself. Here you can gain several useful skills, such as, for example, the ability to communicate with different people and establish business relationships with them. In the future, if you manage to create a truly profitable business in another area, then all the skills acquired in MLM will come in handy.
  6. Team unity is the only advantage of network marketing. Indeed, the team of network companies is friendly and responsive. Each new member of this team is assigned a teacher who willingly helps the newcomer (naturally for his own benefit). Network companies regularly conduct various master classes, seminars and trainings, which again brings together people who are passionate about one thing.

All of these benefits are present in network marketing, but some of them should not be taken literally, such as financial freedom. You definitely shouldn’t expect yachts, villas, expensive cars and living abroad in a penthouse.

Now about dark side"pyramids".

Network Marketing Pitfalls

  1. Lack of stability is one of the main disadvantages of MLM. It is expressed in the volatility of income. Such an occupation can become a source of income, but not a permanent field of activity. Although, again, motivated people are still capable of achieving good results. But this will require spending a lot of time, money and effort, which can be invested in the implementation of more.
  2. There is a very high psychological burden in MLM. Most people approached by sellers react negatively to blatant “selling” of something. Clients have a particularly negative attitude towards intrusiveness. Therefore, sellers of network companies often encounter inadequate people. Moral difficulties also arise due to the fact that after some time the seller himself will teach someone how to sell, and here iron endurance is needed, since there are people who quickly grasp everything, and there are those who are not inclined to quickly absorb all the information and apply it correctly in practice.
  3. No matter what mentors say, network marketing requires financial investments from a beginner. He must buy a product with his own money, and then sell it at other prices with a percentage of it. Accordingly, there is a risk of losing money. That is, a person bought a product, but no one bought it from him, and he doesn’t need it either. Financial losses can be from 1,000 rubles. up to more than 50,000 rub.
  4. In network marketing there is responsibility for others. If the seller has brought a person into the team, then he is responsible for him, is obliged to help him and solve any work issues. But not everyone is capable of being a mentor and being responsible for someone.

These are not all the pitfalls of MLM. After all, there are a number of risks due to which most people do not want to join the ranks of network companies. But more on that later.

Now it’s worth considering in detail how to make money. That is, how and how people make money in network marketing.

How to make money from network marketing: the principle of building a business

The whole point of building a business in network marketing is to create a network of distributors (sellers) of goods. And the more of them there are in the pyramid, the better.

For example, a person started working in a network company. He was attracted to it by a specific person who assigned him as a mentor. A person is taught everything he needs to know, he buys a product and begins to sell it. At the same time, he is in parallel looking for new distributors whom he will train and receive his percentage and additional bonuses (incentives) from them.

Attracting new sellers is quite easy. The person is properly “processed”, told about his prospects, how much he can earn, and about the fact that he will have huge discounts on all goods and is entitled to free gifts. That is, they begin to flavor a person with a bright future, their own dignity, and additionally play on the simple human feeling of greed.

Future sellers are sold not only the product itself, but also images of a bright and rich future. With the help of such techniques, gullible and impressive people are drawn into the “net”. That is, there is also a share of psychology in this business.

From the above methods of attracting new participants to the “pyramid”, it becomes clear why the common people call network marketing a sect. There are some significant similarities here.

In principle, it is extremely difficult to call MLM a business, in the usual sense. Since everything here is based on deception and illusions. Only those who sit at the very top of the main pyramid make money in network marketing, while those at the bottom work hard and do not receive the promised wealth.

The main task of network companies is to sell their products or goods quickly and in large quantities. And they are not at all interested in how this will happen. Only distributors are interested here - the more you sell and attract, the more you earn.

Everyone can judge the honesty of such a “business” or income for themselves. But a number of facts that are not in favor of network marketing remain undeniable.

Now the time has come to consider all the existing risks and dangers that “pyramids” conceal.

Why is network marketing dangerous?

Scientists have long conducted a number of studies that prove that network marketing is no different from a totalitarian sect. They recruit into MLM just like they recruit into a sect. The potential seller is skillfully brainwashed. Moreover, according to a specific technique, which provides for a certain fetish of one’s own chosenness, missionary work (just like in a sect), elitism and significance.

After a person has been “caressed,” they begin to tell him about a carefree future and complete financial independence. Don’t forget to mention the “freebies” that a person is regularly entitled to. All this is fed into the brain of the potential distributor in the right portions, and in the end they simply put pressure on him so that it is no longer possible to refuse the “tempting” offer.

Seminars of network companies are a completely different story. They are attended by ever-smiling people who are happy with everything around them and dreaming of the immense wealth that MLM will bring them. And speakers at seminars only fuel these feelings in people.

The newcomer has been recruited, now he needs to sell the goods. Naturally, the newcomer agrees and pays for his first wholesale purchase in the hope of quick sales and easy money. But as a result, everything turns out to be not so simple. Not as the “teacher” promised.

Naturally, the newly minted “networker” is surrounded by sensible people - relatives and friends. They begin to explain to him that this is not a business, but only a deception and he will not earn anything from this. And this is where quarrels and loss of friends begin. A person is left practically alone with his “correct” opinion.

Regardless of the success of sales, a person begins to invest money in his business - buy new goods. At the same time, he drags himself into debt.

The danger of making money like this is that beginners with a foggy brain are unable to think soberly. For example, they do not understand that before entering any market, they need to analyze it and understand whether the proposed product is needed by consumers at all. And if the market does not need this product, then it is extremely difficult to sell it.

As a result, it turns out that the money is spent, the goods are lying around and no one needs them, there are already debts, but there is nothing to pay them off with, since no one will return the money for goods purchased in bulk.

Moreover, even if the product is more or less sold, such an activity is an illegal business activity. And at one fine moment a person comes to the attention of the tax inspectorate. The result is punishment with serious fines. Moreover, you can now get a real sentence for tax evasion.

And, of course, the main danger of network marketing is that it sucks people into a swamp. Then it is extremely difficult to get out of it.

From the above information, it is clear that MLM is indeed dangerous. It is difficult to make money on it, but it is easy to lose money. Network marketing is truly a cult, but not in the traditional way.

In conclusion, it is worth drawing some conclusions.

You can really make money with network marketing. But how big is this income? You can’t call MLM a business – it’s more like a side hustle. It is a fact that such a field of activity is dangerous. Whether it is worth trying yourself in such a “pyramid” is not advisable, but this is a personal matter for everyone.

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