Number one network marketing company. What is network marketing

You can earn money in different ways. Someone is used to waking up every morning to the sound of an alarm clock or a smartphone signal and quickly getting ready, fearing to be delayed on the way to work - after all, you need to get there no later than a certain hour. Someone prefers shift or rotational options, which give the opportunity to relax after several hours (days, months) of hard work. Still others like to work on the Internet, which involves a minimum of personal interaction with strangers.

But what to do if you don’t feel like going to a regular job, but without human communication it’s boring? There is a way out: this is the so-called MLM business, which involves the sale of goods or services from person to person, without a number of intermediary dealers. Theoretically, this should lead to a reduction in product prices and an increase in its competitiveness compared to the store. Is this really so and is it work in a network company, let's try to figure it out.

Network marketing - companies in Russia (list)

First of all, you need to understand the basic terms and clarify the very principle of the functioning of network companies, since in Russia it is not too different from the world.

Network (affiliate) marketing- this is a way to directly sell products "from the manufacturer to the final consumer", which does not involve the introduction of intermediate links (retailers, resellers and specially hired sellers) into the chain.

MLM is a tracing paper of the English abbreviation MLM: Multi-Level Marketing (multi-level marketing). “Levels” in this case are not retail, but structural formations: no matter how complex the partner business network is, the goods still come from the seller to the final buyer without additional margins.

The principle of building a “team” of network companies is approximately the same and not much different from a financial pyramid: each new participant must not only purchase goods from a recruiter for a certain amount (and then sell it on their own), but also fulfill the plan prescribed in the rules of the structure, already himself attracting new distributors to the network. How successfully a new team member copes with these tasks will depend on his rating and the possibility of further promotion, and sometimes the right to continue working in the company.

Important: since Russian legislation does not regulate the MLM business in any way, each network company has the right to establish for distributors its own degrees of distinction, development and sales plans, terms of trade, and even regulate their behavior when communicating with customers. It is useless to argue with the requirements of the "employer": a newcomer who could not get along in a team can only leave it - often with losses incurred as a result of the purchase and the impossibility of selling the goods.

That is why network marketing in Russia (and in the rest of the world) can hardly be called an ideal start for a young entrepreneur. A person who has start-up capital and has an idea of ​​\u200b\u200ba "airbag" is better to consider other passive income schemes. Perhaps it will be a little longer and a little less profitable, but it will not remain at a serious loss.

The benefits of a network business include:

1. Free daily routine. Each seller, regardless of the accumulated rating and current status, is aimed solely at the result. You can wake up at any time and arrange a weekend for yourself when you want: the main thing is to continue communicating with the wards within the structure and customers and fulfill the plan.
2. Direct correlation between profit and effort. Unlike a fixed salary job, participating in network marketing gives the distributor the opportunity to sell exactly as much product as he can. Therefore, spending a little more effort, you can get more substantial income - and vice versa. The same applies to recruiting activities: for attracting new members beyond the plan, the distributor receives additional points, bonuses or cash payments. The conclusion is obvious: the more communicative and resourceful the consultant, the more he can earn.
3. Various bonuses. Depending on the regulations of the network company, this can be business trips abroad, cash bonuses or material rewards. However, since Russian legislation does not regulate incentive payments, like other aspects of the activities of grid companies, a newcomer should find out in advance whether they are provided for in a particular structure - otherwise, no matter how actively he works, he may be left with nothing.

These are the main advantages of network marketing, but it also has disadvantages:

1. Complete lack of guarantees. The distributor works in the company at his own risk and receives exactly as much as, according to the internal regulations, he has earned. There are often cases when an additional commission is charged from the seller's earnings, sometimes reaching 40% of the amount. This practically eliminates all tax liberties associated with the lack of state regulation of the network business. In other words, even if the seller does not pay money to the state, he will share earnings with the structure itself. And no one can guarantee him any significant profit.
2. Probability of being in the red. As already mentioned, each distributor must, in order to start and continue work, not only engage in recruiting, but also regularly (once a month, quarter, and so on) purchase products that are supposed to be sold to the final consumer in the future. If he cannot do this, no one will return the money to the distributor, and all purchased goods will remain with him. And since the plan must be carried out, a person who wants to stay in the system will have to make new purchases in the future - and so on indefinitely, until the start of successful sales or until complete ruin.
3. Lack of state guarantees. This feature of the network business was discussed earlier: a distributor engaged in the field of MLM is not considered officially employed, does not have the appropriate rights and is completely defenseless against the “employer”.

Perhaps the low employment of the Russian population in network marketing (as of 2018, this is only 7% of the working-age population) is associated precisely with these disadvantages. Nevertheless, a fan should try himself in this area as well - the main thing is to find a company with adequate requirements and not get too carried away with purchases and “moving up” on an ephemeral career ladder.

Below is a list of the fifteen most popular network structures in Russia, suitable for both beginners and professionals in the field of MLM.

Avon

The first network company on the list, founded, like most others, in the United States and came to Russia back in 1991. The scope of activity is the sale of cosmetic, perfumery and, to a much lesser extent, hygienic and souvenir goods.

Features of cooperation with Avon:

1. To start working in a network company, you must register as a coordinator. Already at this preparatory stage, the future team member will face difficulties: he will have to send the necessary set of paper documents to the company's office (fortunately located in Russia) and wait for them to be processed. Only after that you can start working.
2. A significant advantage of the network company opening the list is the low cost of products and small amounts of mandatory purchases. As of 2017, this is only 1600 rubles.
3. A coordinator who successfully sells goods and regularly (with the release of each catalog, that is, approximately once a quarter) attracts at least five new sellers can count on a bonus - a lump sum payment of 125 thousand rubles.
4. For each member of the team there are discounts on products:
   • 15% - when purchasing cosmetics and perfumes only for yourself;
   • 15–32% - when the above plan is fulfilled.

Important: Avon pays coordinators remuneration directly to a bank card, which is undoubtedly very convenient. On the other hand, it is this network company, at least in Russia, that “takes off” from each transfer from 20% (for beginners) to 40% (for advanced sellers) of earnings. In addition, the structure completely lacks vertical development, and all the achievements of the coordinator can be transferred to another seller upon unilateral termination of the contract with him.

Faberlic

The second chain company on the list, which also sells cosmetics, perfumes and related products. The structure was founded in Russia in 1997 and since then it has been systematically and steadily developing, without showing, however, any special miracles.

Features of cooperation with Faberlic:

1. To get started, you do not need to send any documents to the office of the network company.
2. The calculation is made in points: one point as of 2017 was equal to 80 rubles.
3. Mandatory monthly turnover - 50 points, that is, 4000 rubles. If this requirement is not met, the consultant may be deprived of the bonus or excluded from the structure.
4. Vertical growth is envisaged: in particular, to obtain the title of “Director”, it is necessary to achieve a turnover of 5,000 points, that is, 400 thousand rubles. The successful seller will be paid a bonus of 55,000 rubles.
5. The possibility of passive income is completely absent: no matter what stage the consultant reaches, he is still obliged to fulfill a regular sales and recruiting plan.

Among the advantages of Faberlic is the absence of an entrance fee. One of the most unpleasant disadvantages is the lack of business trips abroad and material incentives (only cash bonuses).

Art Life

This network company, third on the list, is also from Russia. It was established in 1997 and initially dealt with the sale of bioactive supplements (BAA), healthy food products (in particular, soluble jelly) and cosmetics. Despite the extremely successful start of the project, over time, its growth began to slow down; Today, Art Life, not one of the leading Russian network business structures, continues to stay afloat, bringing a stable income to both the founders and ordinary distributors.

Features of cooperation with Art Life:

1. A beginner can register as a privileged client. In this case, he will only need to purchase a discount card worth 150 rubles, giving the right to purchase the company's products with a fixed 30% discount. He no longer has any obligations at this stage: you can remain a buyer for as long as you like, or you can move into the category of distributors (business partners).
   • This network company provides three options for cooperation:
   • « Smooth start» - acquisition for the purpose of further sale of goods for 50 points (about 3,000 rubles);
   • « Fast start» - purchase of products for at least 100 points (about 6,000 rubles, respectively);
   • « Leader start"- the amount of the first purchase is greater than or equal to 400 points (about 24,000 rubles).
2. In addition, a monthly sales plan has been developed for participants in the network business - at least 50 points (all the same 3,000 rubles). For the bottom three steps of the company, it is possible to take a break from work for three months.
3. Sales are conducted individually or in a team. In the first case, the distributor receives a 10% commission on sales; in the second (for the senior in the group) - up to 15% of the personal turnover and 5% for the sales of each junior consultant.
4. One of the highest levels in this network marketing is "Director". In this case, the group turnover must be at least 500 points per month and a total of at least 4,000 points. The income of the "Director" is 35% of the personal turnover, 20% of the sales of each of the "Masters" of the group and 25% of the turnover of each consultant.

The main advantage of a network company is a well-established system of remuneration and compensation.

Amway

The fourth network company in the list, founded in the USA in 1952 and first appeared in Russia more than half a century later, in 2005. Field of activity - the sale of household chemicals and items for the care of the house (apartment).

Features of cooperation with Amway:

1. To start working in the network business, you must pay an entrance fee of 5,000 rubles.
2. Mandatory monthly turnover - 200 points (as of 2017 - about 10,000 rubles.
3. Vertical growth is possible, but is greatly hampered by the high price of the product and the complexity of its sale.
4. The presentation of products, according to the requirements of the company, is carried out right at the buyer's home: a consultant can offer to wash something, remove a difficult stain, and so on.

The indisputable advantage of a network company is the quality of the goods sold. On the other hand, they are not cheap, so for many residents of Russia they remain inaccessible.

Oriflame

The fifth company on the list, founded in Sweden over 50 years ago and came to Russia in 1996. Realized production - cosmetics and bioactive additives (BAA).

Features of cooperation with Oriflame:

1. There is no entrance fee for participation in the network business.
2. Mandatory monthly turnover - 150 points, that is, about 6,000 rubles.
3. Discounts for consultants - up to 32% for the next personal order after the next implementation.
4. Award for reaching the level of "Director" - $ 1,000, "Golden Director" - $ 2,000. To obtain a director's title, it is necessary to sell goods in the amount of 250 thousand rubles a month.
5. A network company consultant may not engage in recruiting at all, without losing income.
6. The income of the "Golden Director" and the higher levels is passive, amounting to 5% of the amount of sales of the team he created.

The network company holds monthly foreign conferences for employees, including newcomers. The business can be inherited or sold to a third party.

TianDe

Sixth on the list is a joint Chinese-Russian company founded in 2007. Sales area - cosmetics, perfumery, healthy food, dietary supplements, souvenirs and bijouterie.

Features of cooperation with TianDe:

1. You don't need to pay anything to start working in the network business.
2. Sales are calculated in points (the approximate rate is 50 rubles for 1 point).
3. The consultant receives only 50% of sales.
4. Vertical growth up to the level of "Diamond Director" is possible.
5. There is no passive income at any stage of the career ladder

Since the company is relatively young, there are rather modest incentives for distributors of any level: discounts on personal purchases up to 24% and cash bonuses. A member of the TianDe team should not count on foreign business trips in the near future.

Herbalife

The seventh network company on the list is one of the most famous in Russia and the CIS countries. Founded in 1978 in the USA, came to the Russian Federation at the end of 1994. The scope of activity is the sale of products for a healthy diet and getting rid of excess weight, as well as cosmetics.

Features of cooperation with Herbalife:

1. To get started in network marketing, you need to buy a basic distributor kit.
2. The distributor of products receives 25% of the sales made by him.
3. The next step is the supervisor. His income is already 50% from retail sales, 25% from wholesale, plus a commission of 5% for each distributor.

The main disadvantage of working at Herbalife is the high level of competition and, consequently, the difficulty in selling the same type of product. In addition, products that are of really high quality are quite expensive and therefore have little demand in the territories of the countries of the former USSR.

Mary Kay

Eighth in the list is a network company established in 1960 in the USA and in 1993 "brought" to Russia. Objects of trade - cosmetics and perfumery.

Features of cooperation with Mary Kay:

1. Only adult women can work in the network business.
2. A beginner needs to purchase a starter kit, the cost of which is regularly reviewed.
3. You can earn income both directly from sales, and from participating in presentations and attracting new consultants.

An additional opportunity for those who do not want to participate in network marketing is to purchase a loyalty card, which entitles them to a discount of up to 40%. Bonus - free training in makeup and sales techniques.

Vorwerk

The ninth in the list and the oldest network company, originally from Germany. Year of foundation - 1885; appearance in Russia - 2005. Field of activity - sale of equipment for the kitchen and floor care.

Features of cooperation with Vorwerk:

1. A beginner is required to undergo free training.
2. Refresher courses are held regularly.
3. Vertical growth is possible.
4. The consultant may choose to engage exclusively in direct sales without recruiting new salespeople.
5. Floating scale of percentage due to distributors for each sale.

Vorwerk transfers earnings directly to the consultant's bank card without charging any additional commission.

Natura Cosmetics

The tenth network company in the list, founded in Brazil in 1966 and came to Russia in 2008. The products sold are cosmetics and perfumes (more than 1000 items in total as of 2018).

Features of cooperation with Natura Cosmeticos:

1. Entrance to the network business is free, as is the initial training.
2. Additional discounts, bonuses and cash bonuses are provided for each consultant who copes with the sales plan.
3. Sellers of the first and second stages - consultants and "Advisors" - receive a percentage of each sale.

The schedule of the product distributor is completely free: he can work when it suits him, as well as take small “vacations”.

Siberian health

The eleventh grid company on the list, founded in Russia in 2015. The subject of sale is healthy food products and "ecological" cosmetics.

Features of cooperation with Siberian Health:

1. You can start working without a down payment.
2. A complex system of points, discounts and incentives, as well as deductions for not meeting the monthly plan.
3. Every month, the consultant is obliged to buy (for himself or for the purpose of selling) products for 100 points, that is, about 6,000 rubles.

The main disadvantages of this network marketing project are the high cost of products and huge internal competition: it will be extremely difficult for a beginner to break through and start earning any serious money at Siberian Health.

Agel

The twelfth in the list is the network company Agel, founded in 2005 in the USA and almost immediately came to Russia. The product being sold is natural edible gels from berries with the addition of fruits and herbs.

Features of cooperation with Agel:

1. The possibility of earning income both from personally recruited distributors, and from the "first generation" of sellers invited by them - the so-called quadruple.
2. Due to the technical features of the project, to enter the business, you need to pay from 450 to 1300 dollars, with the emphasis on the most expensive option.
3. Each month, the consultant is required to purchase products worth at least $120.
4. Beginning distributors receive only 3% of sales.

The company is primarily suitable for experienced network marketing professionals with the appropriate skills and capital to enter the business. Among other things, it will be difficult for a newcomer to break through due to strong internal competition.

green world

The next company, thirteenth on the list, was founded in China in 1995, and appeared in Russia in 2011. The scope of activity is the distribution of products for maintaining health and taking care of the home.

Features of cooperation with Green World:

1. The consultant is obliged to purchase goods at least once every three months. The acquisition amount is not fixed.
2. An active distributor must purchase at least $100 worth of merchandise quarterly.
3. There is a flexible system of discounts and incentives for a successfully completed sales plan and attracting new distributors.

Despite its long-standing presence in the Russian market, this network business is still little known and is not developing as actively as the previously mentioned TianDe.

Vitaline

The fourteenth network company on the list comes from the United States. Year of foundation - 1994; year of "arrival" in Russia - 1999. Products sold - cosmetics, bioactive additives and healthy food products.

Features of cooperation with Vitaline:

1. In addition to network marketing, the company actively cooperates with Russian pharmacy chains and online stores, which greatly aggravates internal competition.
2. The newcomer automatically receives a 30% discount on products.
3. Every month you need to purchase a product for at least 45 points (about $ 90).
4. With the growth of turnover, the premiums for the distributor also increase - from 10% to 32% of the monthly sales volume.

The disadvantage of the company is the high cost of products, which makes it difficult to sell them in Russia and the CIS countries.

Zepter International

The list is completed by an Austrian network company founded in 1986. In Russia, it appeared twenty years later, in 2007. The scope of activity of the structure is the sale of kitchen appliances and utensils, elite household chemicals, cosmetics, jewelry and even jewelry.

Features of cooperation with Zepter International:

1. Beginners take a free course.
2. Thanks to a well-established network marketing scheme, competition within the company is minimal.
3. A consultant with minimal sales receives only 18% of the total value of products sold; the maximum stipulated share is 25%.
4. Vertical growth and creation of own substructure is possible.

Due to the high cost of Zepter products, they are quite difficult to sell: the business is suitable for professionals, while it will be difficult for a beginner even after initial training.

How to choose a network company for cooperation?

The ideal network company should meet the following requirements:

1. First of all - to correspond to the interests and abilities of the seller.
2. Engage in the sale of goods permitted for free circulation on the territory of the country.
3. To offer quality products that are safe for the health and life of customers.
4. Be present on the market for at least 5-10 years.
5. Have a well-thought-out, profitable marketing plan for the distributor, as well as a flexible system of discounts and rewards.

Advice: it is better for a novice seller to choose an MLM business with little internal competition and a low entry threshold: this will help not only to avoid possible disappointments, but also not to regret too much in case of termination of cooperation about wasted money.

Summing up

It is real to make money in the field of network marketing: for this it is enough to have ingenuity, sociability and a small starting capital, as well as to be internally prepared for possible failures.

A novice direct sales agent should not invest all the money in the initial or subsequent purchases, as well as overly trust superior colleagues. This is how, remembering caution, he will be able to protect himself from ruin and build a worthy career in the network company of his choice.

Traditionally, on the first Sunday of December, Russia celebrates Networker's Day - 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 multilevel marketing is a serious competitor to retail.

Strong link

Profit from direct sales for distributors is quite low. They give most of the proceeds to the company and to higher-ranking distributors. The main profit comes from the sales of sponsored distributors.

Pioneer Carl Rehnborg

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

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

AMWAY

Now the company's turnover is over 8 billion dollars, and it ranks 25th among the largest private companies in the US according to Forbes. True, the history of Amway is not cloudless. More than once she became a participant in scandals. So, one of the former top distributors of the company, Eric Scheibeler, who is personally acquainted with the founders of Amway, in the book "Deceitful Merchants" accused the corporation of fraud and called it a totalitarian sect. This is not the first accusation of "Amveevites" of sectarianism. The training methods used in the company have been criticized more than once.

AVON PRODUCTS

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

Mary Kay

Mary Kay's "chip" is that its consultants do not just sell products, but act as "beauty consultants". That is, they undergo basic skin care training. The second feature is that the 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 it in 2010. For which she was severely criticized by the "greens".

ORIFLAME

Oriflame positions itself as an environmentally friendly company and even prints catalogs on paper, which is produced from artificially planted forests. Therefore, Greenpeace people do 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 and non-payment of taxes for several million rubles.

FABERLIC

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 a year.

KIRBY

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

HERBALIFE

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

The debate about whether the MLM business is good or bad continues to this day. Some extol multi-level structures, seeing them as opportunities for quick earnings, others condemn the very principle of building pyramids. Business analysts do not agree. Some predict that direct selling will soon replace 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 going to go down just yet.

Alena Yarkova almost got into the network
Illustrations by Dmitry Shevchuk

Network marketing as a type of business is gaining new heights. However, not everyone knows him well - some trust him and are happy to cooperate with such companies, while others try to stay away from MLM trading and sincerely consider it a swindle and a "pyramid".

Network marketing and financial "pyramids" - similarities and differences

The second category of the population is only partly right - the principles of network marketing actually resemble financial "pyramids". It lies in the fact that in order to make a profit, it is necessary to attract other people. However, this is where the similarities end.

Simply put, in the second case, you can bring as many new participants as you like, but if they don’t buy anything, then the income of the “agitator” will be zero.

With the first option, the opposite is true - the client receives a percentage of the contributions of newcomers. In this case, the amount of the initial payment is usually very significant and can range from $100 to infinity. The participant most often does not receive a real product or acquires something that does not have a high value in the real world.

How to choose a company for cooperation

For those who decide to start a career in network marketing, experts advise choosing the right company for cooperation.

Here you need to pay attention to the following factors:

Training and informing consultants

For a beginner, it is very important to have the opportunity to attend various trainings, consultations with more experienced sellers. Many companies offer step-by-step training systems that allow anyone who wants to quickly move up the corporate ladder. In addition, MLM organizations often offer educational and promotional materials.

Company reliability

There are two ways here - to choose a start-up company or a company that has already established itself in the market. In the first case, you can be at the very origins of the business and have more opportunities to attract new customers and get "quick" money. But here the “pitfall” is the new name of the company: firstly, no one knows the quality of its products, and secondly, it can quickly cease to exist.

In the second case - to go to work in a reputable company - there are also pluses and minuses. On the positive side: the products of this company are already known to the consumer, so they sell better. In addition, it is unlikely that it will fall apart in the next few years. But there are also disadvantages - such companies already have enough distributors, and competition among them is high.

Manufactured products

It must meet the following requirements:

• high quality and environmental friendliness is a must! After all, network marketing is built on the principle of "word of mouth", and in the event that the buyer was dissatisfied with the quality of the purchased product, he will recommend to his friends not to use it;
• a wide range - in this case, each buyer will be able to pick up something special for himself and his family. How many advisors can be successful trading only two or three positions?
• affordable prices - they should be such that 95% of the country's population can afford to purchase this product;
• not a very long validity period - this is necessary so that the client purchases these products as often as possible. If the product has a validity period of several decades (for example, dishes), then the distributor will have to constantly be in search of consumers. The ideal goods for trade are cosmetics, household chemicals, perfumes, hygiene products,.

Company rating

Continuing the topic, you can casually notice that a company for cooperation is chosen based on its financial performance. And this is logical - the more sales the company has, the better the demand for its products from consumers, the more stable it develops and grows faster.

The rating for 2018 is as follows (in billions of dollars):

1. Amway - $9.50
2. Avon - $6.16
3. Herbalife - $4.47
4. Vorverk - $4.00
5. Infinitus - $2.88
6. Mary Kay - $3.70
7. Perfect - $3.58
8. Natura - $2.41
9. Tupperware - $2.28
10. Nu Skin - $2.25
11. Tiens - $1.55
12. Primerica - $1.41
13. Ambit Energy - $1.40
14. Oriflame - $1.35
15. Belcorp - $1.20
16. Telecom Plus - $1.17
17. New Era - $1.16
18. Jeunesse - $1.09
19. New Avon - $1.01
20. Young Living - $1.00

There is a Direct Selling Association (DSA) in Russia whose main goal is to develop the network marketing industry. She is also involved in protecting consumer rights and monitoring compliance with ethical standards in doing business.

This association includes only 21 MLM companies out of many firms operating in the country:

Senior members of the APP:

1. Amway
2. Herbalife
3. Mary Kay
4. Oriflame
5. Tupperware
6. Tiens

Active members of the APP:

1. Jafra
2. Coral Club
3. Mirra
4. Morinda
5. Nu Skin
6. Tentorium
7. Faberlic
8. Florange
9. Associate Members of the AMS:
10. Accord Post
11. AlliancePrint
12. filuet

Based on these data, you can choose an excellent company for cooperation and start, albeit small at first, but your own and reliable business.

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. They are easy to do without even leaving the house. If you study in detail the basics and concept of MLM marketing, you can achieve excellent results in 2-3 months.

What is network marketing

MLM business is a multifaceted concept that opens up many perspectives. It implies the concept of the sale of services and goods, based on the formation of a network of independent sales agents who are not only involved in the sale of 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 the sale of products and additional remuneration (bonuses), which directly depends on the volume of personal sales of the involved sales managers.

History of network marketing

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

After Carl realized that the free is not appreciated, he began to sell supplements: the results were not long in coming. Information about drugs quickly spread, and the number of people interested in them increased. Karl Rehnborg could not satisfy the needs of all customers on his own, so he had to come up with a new scheme. He invited his acquaintances to provide information about bioadditives, and, subject to successful sales, promised to pay commissions. From these events began the history of network marketing.

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

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

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

Types of network marketing

MLM business is developing at a fast pace, its varieties are increasing every year. The main types of network marketing are as follows:

• Puff (the most popular, adapted to the Russian market, its vivid example is the companies selling cosmetics - Avon Products, Faberlic, Mary Kay, Oriflame. The essence of this type of marketing is that the concept of the company 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 a few people who sell services and goods, they subsequently find a few more people and control their activities, and so on ad infinitum.

How Network Marketing Works

The principle of operation of Russian MLM companies is the same:

1. First, a person is interviewed, where he is introduced to further prospects and opportunities.
2. Then the person is told that he should, 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 business development.

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 products. MLM companies offer unique products that are in demand both in individual cities, regions, countries, and around the world. MLM business is not only direct sales. You don't have to sell anything to be successful in this field.

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

Network Marketing Principles

MLM business is based on the following rules:

• equality for all;
• helping others;
• minimum entry costs;
• having a 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 do not achieve the desired results. Why? Because they do not know how to properly build the structure of network marketing. What is a structure? These are people who take part in the organization of trade, and the final income directly depends on their number. It can include acquaintances, friends, complete strangers. The main task is to skillfully unite them and constantly motivate them for successful promotion.

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 successfully operating in Russia is given on the Mlmbaza website, the most popular are:

• Life;
• Oriflame,
• "Siberian health";
• Faberlik;
• Avon;
• Primerica;
• Shaklee;
• Talk Fusion;
• Neways;
• Vitamax;
• Zepter International;
• Kirby;
• Atistek;
• Lurk;
• True.

Work 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. An MLM distributor must be able to organize the sale of products, draw up schemes for the effective distribution of services and goods. The profession obliges to attract new partners, expand the client base (network), apply intellectual resources, use the network, establish a system that will generate income directly for the company and the network manager.

Network business on the Internet

The global 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 sales information network, 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 possibility of attracting potential partners from any regions, cities and countries;
• a lot of information programs that provide prompt assistance in solving organizational issues, conducting education and training;
• the possibility of selling through online stores with an integrated order basket;
• possibility of learning online.

How to make money in network marketing

To be successful in this business, you need to 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 brightly and unusually;
• actively involve their relatives, acquaintances, colleagues;
• constantly improve oneself, raise the intellectual level;
• skillfully build a pyramid by attracting new people, in order not only to earn commissions from sales in network marketing, but also to provide residual income.

Cons of network marketing

Before you start a distributor career, 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 is chosen. List of cons of network marketing:

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

Network Marketing Benefits

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

Video: how network business works

Alexander Ivanov

I am glad to welcome you, readers of my blog.

It was born in 1963 and, hard to guess, was named after its founder.

The catalogs offer high-quality cosmetic products and are in great demand among Russian consumers.

Back in 2012, the organization took the honorable 6th place among international companies in direct sales. And this is worth a lot, given the scale of statistics.

A feature of this MLM company is the high level of preparedness of sales agents.

They not only sell products, but also receive pre-training in the use of cosmetics and skin care, which ensures a professional approach and a high degree of customer confidence.

Location 6. Oriflame

This time it was not the Americans who distinguished themselves, but the Swedes. is a Swedish brand founded in 1967.

Back then, catalogs offered only one product line, while today the range includes over 1,000 perfumes and cosmetics. The turnover is 2 billion dollars a year, and there are more than 3 million net distributors.

A feature of the company was the position of an environmentally friendly manufacturer.

All products have a natural composition, which is especially appreciated in the world of synthetic goods.

To demonstrate its firm position, the company even publishes catalogs using materials from artificially grown forest plantations.

Location 7. FABERLIC

Well, finally, our Russian company becomes the last favorite of my rating. Its founders were our compatriots entrepreneurs Alexei Nechaev and Alexander Davankovy.

At first, the company was referred to as "Russian Line", but in 2001, apparently deciding that this was not solid enough, it was registered as Faberlic.

To date, the brand has expanded to 20 countries, including Germany, Poland, Hungary and Romania. Faberlic considers developments based on perfluorunlerodes, that is, a collection of oxygen cosmetics for facial skin care, to be a unique “trick”.

Their annual turnover, according to today's estimates, is more than 250 million dollars.

Regardless of the company's rating, in my opinion, the ones that deserve the most attention are those that suit the majority of people who shop on the Internet, and which can be used as a main or additional direction, in parallel with one or another grocery business.

Among these, I include Cashback service Switips, the benefits of which I wrote right here on Telegraph.

I was glad to provide up-to-date and informative information and I really hope it will be useful for those who are interested in the direct sales system in MLM companies.

Stay with me, subscribe to updates, including the Telegram channel t.me/site and I promise to replenish the blog archives with fresh, and most importantly, necessary information.

P.S. I recommend paying attention to free training on Cold contact automation, which will help you create a System for attracting partners to your team on full autopilot online.