Own business: how to open a tea shop. What is network business MLM (MLM)? How to make money in network companies in Russia

* Calculations use average data for Russia

It is unlikely that anyone now does not know what MLM is, aka network marketing, from English multilevel marketing, can also be translated as multi-level marketing. At its core, MLM is the concept of distributing your product, that is, virtually any enterprise can engage in network marketing, regardless of the scope of its work. However, it is not very convenient to distribute services in this way, so this principle usually applies to the sale of any goods. In civilized countries, where MLM has long been born, and then through the thorns came to an adequate organization of its work, there are special laws that regulate this very specific and unflattering way of distributing products. In the same country, no such legislative acts were found, and when superimposed on the Russian mentality and economic situation, this gave its unexpected effect.

It must be said right away that MLM, in general, is a very progressive concept, which has its own not only disadvantages, but also important advantages, it’s just that in the end it began to be implemented crookedly, and in Russia in general there was a particularly obvious stratification of the “top” and “ referrals”, when the former, quite rubbing their hands, received huge profits, while the latter were forced to spend their own money on a product they did not need. But first things first. So, network marketing is the concept of distributing goods and (much less often) services, when involved employees are involved in the implementation, who also have the right to attract new people to expand the network and transfer similar rights to new members. However, the foreign definition is somewhat more accurate, because as a result, it is not a network of interdependent and equal participants that is built, but a pyramid, at the top of which the leader has a good income, and employees at the very bottom are forced to resort to all possible methods and solely at their own expense to sell the goods. They are proudly called distributors, less often sales agents, and therefore the latter imagine themselves to be almost independent businessmen. To some extent, this is true, only the principle of operation is slightly different.

For a Russian person, MLM is warningly consonant with MMM, both are pyramids, only the genius of Mavrodi went too far, and therefore crashed. However, at present, people enter the labor market who simply heard about vouchers from their parents, and therefore they have little idea of ​​the dangers of financial pyramids. Especially if the pyramid is headed by a person focused only on his short-term profit. This is the first problem of many modern MLM companies, although from the outside it may seem that the company has its own corporate style and support for employees. In fact, everything is different - it's just marketing ... aimed at their own employees in order to deceive them. Moreover, it got to the point that a very negative image was created for network marketing, and from both sides at once - and the population disliked the meticulous referrals trying to force the purchase of their miracle powder almost by force, and the disappointed referrals themselves, who spent all their savings and a lot of time, after sitting surrounded by purchased vacuum cleaners and understanding the whole essence of deception, they began to quite naturally resent this concept of marketing. It all started back in the merry 90s, when Zepter pots, Herbalife dietary supplements appeared, then the unprepared market saw unreasonably expensive Kirby vacuum cleaners, and now the negative image of network marketing is supported by a huge number of Chinese companies that work exclusively in Russia and in some other countries, because in China for MLM they give a serious prison sentence. In connection with all this, a company that has decided to engage in direct sales and MLM in particular will have to face a huge number of problems and distrust of both consumers and potential employees. Although many of these organizations thrive to this day, using all the same dishonest methods of selling their miracle products, because a certain contingent of people are not mammoths, they do not die out.

Let's try to consider the possibility of organizing our own MLM concept, which will use only "honest" methods, work the way all progressive humanity works now, but taking into account Russian realities. In principle, any company that is focused on selling its products to a large number of consumers can use the concept of network marketing. The simplest and most striking example of the use of network marketing is just in large manufacturing companies, but at the same time producing a mass consumer product. If we do not take long-suffering vacuum cleaners into account (because the trade in equipment is generally a more complicated process), then most often through MLM they sell cosmetics, non-drug products that are passed off as medicinal (BAA) and other frying pans. That is, this is the product that you can buy, in general, spontaneously, without planning the purchase initially.

So, the owner of the company releases a product and decides that cooperation with distributor companies, retailers and other familiar market participants is not profitable or simply inappropriate for him, and it is much easier to use the direct sales method. The entrepreneur attracts employees to his staff who should be engaged in these very direct sales, that is, in fact, he needs sales agents. This is where the differences begin. A sales agent in a simple case receives a percentage of the sold products, often has a small but fixed salary, receives all social benefits and is fully employed at the enterprise. He is protected. In a company that practices MLM, the sales agent quite often does not even get a job, but is simply listed as an employee on the side. Therefore, he was initially deprived of all his rights in accordance with the labor code of the Russian Federation. If a company does not hire its sales agents, then they are at great risk, because they are in fact engaged in illegal business activities, because it is unlikely that any of them, after starting work in an MLM company, go to register as an individual entrepreneur and at the same time are generally ready to also pay taxes. At the same time, the parent company itself legally acts legally - it transferred its goods on a reimbursable basis and paid the profit from this. At the same time, she does not keep employees on the staff, to whom she has to answer and, in general, pay them money.

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This is the essence of MLM - all referrals, in fact, work only for themselves, providing their managing manager in the process of their work. The fact is that today in the vast majority of companies that work on the principle of network marketing, it is required to pay for a consignment of goods from their own pocket to get started. That is, the manager does not give it for sale for a fee, he literally sells his product to his own employees. In critical cases, there is also a “validity period” for this trial batch (usually a month), that is, if the agent did not sell anything during the reporting period, this becomes exclusively his problem, because he paid for the goods with his own money, and the next month he is obliged ( yes, it is obliged) to buy a new batch already. Sometimes in the first month they offer a “trial” batch, which costs him a little cheaper, but subsequently the amount increases. So it turns out that the goods are bought by the employees themselves. Black MLM companies make money on this. In principle, they are not interested in promoting their product to the masses, they generally do not need to engage in marketing in general and maintain the image of the company and product, because income is generated solely through sales to their referrals. So, in general, the implementation process is also going on in “normal” MLM companies, the only difference is that the normal one is trying to put the product on the market and support its employees, and does not profit solely at their expense.

A logical question is that if no one buys products, and a person is forced to buy what he does not need and what he cannot sell, then where does the income come from, because even in the most neglected cases after 3-4 months such people simply leave. This is true, although there is a percentage of those who are confident that “everything will be very good from next month”, but in most cases income is formed at the expense of neophytes. A huge number of students, housewives and other similar elements want to find a simple job with a flexible schedule (and you don’t have to sit in an office with a nasty boss), for which they would also pay well. Network marketing promises it all, hiding some important details. Therefore, it is often enough for a manager to conduct interviews monthly (or even more often) in order to attract newcomers who simply pay once, and then leave, anyway, in the new month there will be another thirsty for easy money.

A normal company (of which there are practically no on the Russian market) acts differently. The founder attracts direct sales specialists to his staff, draws them up in accordance with the Labor Code of the Russian Federation, after which he gives them the installation to find people who will also be engaged in the sale of goods on the same conditions. This is how similar rights are formed for all network members, that is, even the founder is actually equal to his employees, his only advantage is that he receives the goods directly. At the same time, no one and no one obliges anyone to buy goods right away, a person is hired precisely as a sales manager, and not a “distributor”, who is promised huge profits literally tomorrow. It is very important that experienced and competent people who are engaged not only in sales, but also in training new employees stand at the origins.

It may seem that providing employees with both free (and in a normal company it should be free) training, and social benefits, and support, combined with equal rights, will entail losses, but in fact this is not so. Here you need to know what TQM is, which is generally very well combined with MLM, but due to the fact that TQM (total quality management) is focused on the long term and requires a lot of investments, which, although they will pay off many times, but not very soon, have not received distribution. It's simple - network marketing was perceived precisely as a tool for quick and not entirely honest profit. The modern progressive concept has fallen victim to human greed. In this regard, you need to develop your network marketing only in combination with even more advanced economic and management solutions (not only TQM, there are other good ideas in the economy), because all this will lead to an increase in the organization's income, and in the end it will turn out to receive even more profit, but only in an honest way. Unscrupulous entrepreneurs need to remember that this will allow them to earn, albeit a little later, more money, and the company will enjoy a good reputation among the population, and therefore among potential employees.

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There is an important thing to note here. In most cases, MLM is used by companies that produce, to put it mildly, not very high-quality or simply unclaimed product. Unpopular products can sometimes only be sold this way, because there are several advertising laws that are inconvenient for a dishonest enterprise, but most often it is low-quality products that are sold through network marketing. Which are sold at the same time at a price sometimes several times higher than higher-quality counterparts. Of course, here it is easier to deceive your employee, force him to buy his own something, and then send him by hook or by crook to sell this something to at least someone. In especially neglected cases, referrals of the lower levels reach the point that they simply call each apartment and literally try to sell their goods on the doorstep. This method of selling has a number of disadvantages (any person with even a little understanding in marketing knows this), but in the case of MLM, it shifts all the problems onto the shoulders of the referral. Some of them try to trade goods via the Internet, strictly speaking, it doesn’t matter to the manager who and how the product will be sold, but given that the “black” MLM company focuses only on the number of its referrals (the more there are, the higher the income), then she hires more than ever, absolutely everyone. And 99% of these people do not know anything at all, not only about marketing, but about the principles of simple trading in general. Moreover, often in MLM-companies there are trainings for "personal growth", "mastering the skills of selling" and other nonsense, which aims not at training, but at brainwashing. No wonder the Russian Orthodox Church opposes network marketing companies - they realized that such companies form their church with the messiah in the form of a founder. Bread, in general, is taken away. And in many cases it is true, the trainings tell stories about successful referrals (most often fictional), who eventually built their business, because in fact only the founders who were good at driving the ideas they needed into other people's heads were able to make a profit. Yes, meetings of MLM employees who really got into the idea, worked for several months and still cannot afford to be disappointed, are like a meeting of witches and even more like a meeting of religious fanatics. Here it is impossible not to note the good skills of a psychologist among managers and employees who have nevertheless achieved some results (they become those who were able to attract a lot of their referrals), because not everyone can brainwash like that either.

As a result, the chain is simple - at the top is the leader, a little lower are smart psychologists, even lower are those who were able to do vile work with the wrong hands, and at the bottom there is a sea of ​​​​desperate and believed that if you buy a product that no one needs every month and impose it everywhere, then success will surely come. Due to the fact that the product is sold, its price increases many times at each level of this rotten pyramid. Especially neglected cases, when in this chain there is no way to rise to a higher level, but you can only form levels below you. You do not need to have an economic education to understand that at each subsequent level the price of a product will increase, and the final consumer (if there is one) will receive it with a margin of several hundred percent, or even more than a thousand.

Thus, a company that wants to engage in network marketing must produce a really high-quality or at least liquid product. The product must be bought, and bought constantly, but what is very important - it must have a competitive advantage. The MLM scheme itself allows you to save in many ways. The first is the absence of the need to maintain their trading platforms, in some way the need for advertising is reduced, because the positive image of the product is formed by agents, and this image is reinforced precisely by the positive experience of using it by the consumer. Hence the good reputation and demand for the product.

Through network marketing, you can even sell elite goods that can only be obtained “through acquaintances”, this will generally form an excellent perception of the product and, ultimately, may generally lead to the fact that the price increase will not come from the manufacturer, but from the consumer, who I'm willing to pay more for something unique. Such marketing techniques are much more effective.

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But the most important thing is still the high consumer value of the product, even if it is a completely new product on the market or even innovative. Only innovative it should be not only in words. Further - the company itself should be engaged in marketing not only network marketing. That is, there should be information about the product on the market, a good image of your product should be formed, presentations and some kind of advertising campaigns should be held. Then the person will know that the offer on the Internet from the referral includes the implementation of a really good, high-quality and proven product. If there is a recognizable brand (recognizable with a positive connotation), then it will be much easier for the referrals themselves to sell the goods. And hence the profit of the organization itself. As for trainings, maintaining the loyalty of your employees and other work with the staff, then again, everything is described in the TQM concept. Then you can get people no less zealously serving the goals of the company, only not zombified by empty promises, but motivated by real results. And you need to train people constantly and, yes, do it for free. This is company money.

The correct use of MLM will lead to the fact that the manufacturing company will form a chain of its relatively independent distributors who have good sales, perform some of the many duties on their own, build their own successful business, and at the same time are employees who act very effectively. Sales growth will clearly exceed the level of sales growth of the “black” MLM company many times over. At the same time, the social benefits are obvious - the employment of the population, the promotion of business to the masses, the formation of modern entrepreneurs who know how to trade. Yes, you will have to invest a lot of money for this, because this way of organizing a business is much more expensive, you will have to hire competent managers and fully support your own development strategy, helping your employees achieve a common goal. Then it will be possible to say that this is a truly progressive company that was able to correctly apply the concept of MLM. It will be possible to call it a network marketing company, and not a financial pyramid with empty promises, in which everyone works towards a common goal, and does not deceive and deceive consumers for the sake of short-term profits of the founders.

Matthias Laudanum
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In the last 10 years in Russia, network marketing has been rampant with activity. Probably everyone who lives in large cities at least once encountered MLM companies. The most famous and largest of them in the Russian market are AVON and Amway. But there are many other smaller ones as well. Let's take a closer look at what network marketing is.

Network marketing is a strategy for selling goods by building a developed independent distribution network of sales agents who, in addition to selling goods, can attract new partners and give them similar rights. In network marketing, income always comes not only from personal sales of goods, but also from sales made by your referrals (sales agents attracted by you). Network marketing is often referred to as multilevel marketing or MLM (multilevel marketing, MLM).

From the outside, network marketing looks like this - you are looking for customers in all possible ways: through acquaintances, on the Internet, in shopping centers, in general, you use the method of active sales. Your task is to find someone who will buy your product. Moreover, it is desirable that a person “hooked” on this product and bought it constantly, and even better, that he himself began to sell it. The more goods you sell with your referrals, the more you earn. Many people believe that you can work actively for several years, create your own dealer network, and then enjoy passive income. But in fact, reaching a stable passive income is extremely difficult, and the work in network marketing itself implies that you need to always actively offer your product.

What product is sold through the network marketing system?

With the help of network marketing, they usually sell general consumer goods that can be offered to everyone. Through network marketing they sell: cosmetics, food, various bio supplements and vitamins, household chemicals. In general, these products are not much different from what is in regular stores. Sales are achieved due to the fact that sellers are result-oriented and well-versed. In addition, some of the goods are bought by the participants themselves and their friends and relatives.

Pros and cons of network marketing for the seller.

What are the benefits of network marketing for the seller himself? And is it worth doing it? When you are approached to work for network companies, you are promised many benefits, but you should not take everything at face value.

Perhaps the main advantage of network marketing is that network marketing is a certain school of life, you will learn to look at things differently, you will have a business approach. You will not only learn how to sell a product, but also acquire the skills to communicate with completely different people. You will be much more relaxed in communication, you will not be at all afraid to approach a person on the street and start selling something to him. In general, these skills will be useful to any person who develops himself and wants to achieve something in life. I advise everyone who wants to start their own business to work in network marketing.

You will learn how to manage your own time. You are given freedom, which everyone uses in their own way. Not everyone is able to plan their day in such a way as to achieve maximum sales and have time to relax. You will not have a boss, an alarm clock and a clear schedule. This freedom is naturally not suitable for everyone, if you understand that you do not have the proper responsibility, then you probably should not go into network marketing.

Network marketing is an opportunity to have additional income. If your job allows, then you can do network marketing in your free time. This will be a good addition to your salary. Most people do just that. Also, network marketing is great for students.

The disadvantages of network marketing include not the stability of earnings. You will not have a salary, sick leave, vacation pay and all the other delights of working on a labor basis. In addition, frequent payments in MLM companies are made informally, without paying tax.

Which companies are engaged in network marketing in Russia.

As mentioned above, there are a lot of companies in Russia that are engaged in network marketing. In total, according to official data, there are more than 500 such companies. Here are the most famous of them:

1. Amway (Amway, Amway) - 450 items of high-quality Amway products for proper nutrition, beauty and household.
2. Herbalife International RS (Herbalife) - Products for a balanced diet, wellness and personal care.
3. Mary Kay - Cosmetics, perfumes, skin care products.
4. Nikken — A wide range of products for a healthy lifestyle: healthy sleep system, water filtration and optimization system, air purification and ionization system, mattite technologies.
5. Oriflame Cosmetics (Oriflame) - Natural Swedish cosmetics. Ingredients and inspiration from nature. Face and body skin care products, perfumes, decorative cosmetics, accessories. Formulas of cosmetics are developed using the latest achievements in the field of cosmetology.
6. Taperware (Tupperware) - High quality plastic utensils.
7. Avon Beauty Products Company (Avon) — Perfumes, cosmetics, accessories, bijouterie.
8. AquaSource - High quality natural nutritional supplements and 100% natural skin care products without chemical preservatives.
9. Siel perfume (Siel) - Perfumes, cosmeceutical products and decorative cosmetics.
10. Holding INFINUM (Infinum) - Cosmeceutical and cosmetic products, perfumes, dietary supplements, insurance and financial services.
11. Nu Skin Enterprises (Nu Skin) - Cosmetics and dietary supplements.
12. Faberlic — Cosmetics, decorative cosmetics, perfumes, bioadditives.

All these companies have a fairly rich history and extensive experience in network business. The product that they sell is quite popular and is in constant demand. If you decide to try yourself in network marketing, it is better to start working with companies from this list. I must say right away that this does not mean that other companies are worse than that. It's just that these are more personally known to the author of the article.

Where does the "bad reputation" of network marketing come from.

Many residents of our homeland consider network companies to be scammers and are not inclined to trust their business. First of all, this is due to the fact that network marketing began to develop actively after the 90s. When a lot of scammers with financial pyramids passed through the country. For many years on TV they show how the population is robbed, those who offer to earn extra money from the beginning by buying something or attracting friends. Indeed, the channels for disseminating information about financial pyramids and network marketing are very similar, but there are also distinctive features. First of all, a financial pyramid cannot exist in the long term (maximum 3-5 years, usually less than a year), network companies have been successfully existing for decades.

How to distinguish network marketing from a financial pyramid?

Recently, the creators of financial pyramids are increasingly trying to disguise themselves as network marketing activities. Unfortunately, Russian legislation and the executive branch stop the activities of such companies, as a rule, when there are already hundreds, and sometimes thousands of deceived people. How to distinguish network marketing from a financial pyramid:

1. Product. Look at what product the company is selling, be especially wary of companies that sell intangible products. The product must be useful to the client, it must have all the relevant certificates.
2. Product price. The price of the goods should not be overstated several times. For example, if you are offered to sell a certain program, there are many free analogues in terms of functionality and properties. And in order for you to start selling it, you yourself must buy it from the beginning for 15 tr. Here on the face is a clear sign of a financial pyramid.
3. Is it possible to sell your product over and over again to the same customer. All MLM companies rely on long-term cooperation with the client, and not on a one-time sale of dubious goods.
4. If initially your goal is not to sell the product, but to look for new referrals and you can receive profit only from their involvement. In financial pyramids, as a rule, they don’t devote much time to the product at all, they tell more about how and where to look for new referrals and about your future profit from them.
5. company lifespan. If a company exists in the market of your country for more than 5 years, then most likely it is not a financial pyramid.
6. White ZP. In a pyramid scheme, they will never offer to whitewash your income. Moreover, often the organization itself is not registered in any way or is registered under the guise of other activities. Though this is rare these days.

Almost 90% of successful MLM companies present on the Russian market work in the field of cosmetics and dietary supplements. Found their customers and categories such as goods for motorists, dishes and textiles. Many of the network brands are not only known to the consumer, but are also in high demand, which means that it is much easier to get additional income by becoming a representative of such a network. In order to reduce risks at the same time and conclude an agreement with a reliable organization, you can consider for yourself a list of network marketing companies in Russia that work completely legally and are included in the ratings of the best in terms of product quality and cooperation conditions.

Foreign MLM companies in Russia

It is worth recognizing that the best network marketing companies in Russia came to the domestic market from the US and Europe. Many of them have been operating for decades, and even today you can occupy a worthy niche in the existing chain of such a network.

The first network company that appeared on the domestic market in 1995. In the CIS countries, its name has become a household name for all nutritional supplements for weight loss and work in the network business in general. Herbalife was founded in 1980 and today is one of the three largest chains in the world. On average, annual sales of products is about 4.5 billion dollars. Income from participation in the network is generated by discounts on the purchase of products, which at the initial stage is 25%.

Official site in Russia -.

Avon

Avon

The oldest network marketing company in the world, founded in 1886 in California. It has been operating in Russia since 1991, offering cosmetics, perfumes, accessories and souvenirs. It is one of the three largest network companies in the world. Avon products are popular in 75 countries. Network members are offered a linear marketing scheme, which includes income from individual mark-ups on products and remuneration from the group's turnover.

Official site in Russia - avon.ru.

Amway

Amway

The largest and most successful MLM company. She began her work in 1959 in the USA. A distinctive feature of Amway is a wide range of products, which includes various consumer goods from cosmetics and household chemicals to bags, dishes and stationery. Amway's annual turnover is about $12 billion. Members of the network are positioned as Amway Independent Entrepreneurs, who receive the right to purchase products at a discount. In addition to earning from the markup on goods, a distributor (registered as an entrepreneur with the tax authorities) can receive bonus payments for personal turnover and the turnover of the group attracted by him.

The official website in Russia is amway.ru.

The company was founded in 1963 in Texas. A feature of this network is not only the launch of high-quality and affordable cosmetics on the market, but also regular lessons for clients on skin care and makeup techniques. Because of this, Mary Kay distributors are called consultants. The annual turnover of the network is about 3 billion dollars, and the total number of consultants is more than 2.5 million people. Currently, about 500,000 network members are registered in Russia, with almost 80% being updated during the year. The partnership is based on a linear marketing system. Income is generated from an individual mark-up when selling products, as well as commissions for reaching a certain level of turnover.

Official website for citizens of the Russian Federation - marykay.ru.

The fairly well-known company Oriflame, founded in 1967, was one of the first to enter the domestic market, which today it positions as the main one. Since 2006, in addition to service centers, the production of some types of brand products has been established in Russia. There are currently more than 3.5 million registered distributors in this marketing network operating under a multi-level marketing scheme. The main products of the company are cosmetics, perfumes and Wellness line of nutritional supplements. In recent years, the company has been actively developing in the Internet space.

Official web representation in Russia -.

Many network marketing companies are trying to enter the market with a non-standard product for this business, which is in constant demand from the consumer. Perhaps best of all, the Austrian company Zepter, which began operations in 1986, succeeded in this. The main direction of goods is high-quality kitchen utensils, household appliances, medical equipment and cosmetics. Products are manufactured using our own innovative developments at six large factories located in different countries of the world. At the time of 2018, more than 120 representative offices of the network were registered in Russia, and more than 6 million people became the company's clients. Zepter offers its distributors a linear marketing system.

Russian web representation -.

A young French MLM company with a linear marketing system that entered the Russian market in 2013. The main line of production is natural cosmetics at an affordable cost, while distributors purchase products at a 26% discount. The income of a company representative, in addition to the markup, is also formed from the turnover of the attracted group, which ranges from 3% to 21%. Also, distributors can arrange the opening of a bureau (subdivision), receiving additional bonuses from its turnover. At the current stage, Biosea is in a phase of active growth, which makes it attractive for building an independent career.

Official site in Russia - biosea.fr/ru.

In fact, Farmasi was founded in 1950, but it entered the Russian market only in 2011. The main direction is the sale of decorative cosmetics, luxury perfumes and various care products. Like many network marketing cosmetics companies, the Turkish brand Farmasi offers to earn through a markup (discount for a partner), which directly depends on the volume of sales. Bonuses are also paid from the turnover of the attracted group, while the percentage of deductions depends on the level of the latter. At present, the development of this network is marked by intensive growth, which is due to the high quality of products and incomparably affordable prices.

Official website of the company -.

An American company founded in 1978. A feature of this network is products made exclusively on the basis of Aloe Vera. At the same time, more than 150 items of complexes, cosmetics and dietary supplements are currently presented in the catalog. Forever Living Products' current network of distributors, acting as independent entrepreneurs, exceeds 10 million people, but this company is still very little represented in the domestic market.

Company website for the Russian market - foreverliving.com.

Another American company working in the direction of the production of cosmetics and biological supplements. Jeunesse Global focuses on anti-aging and complex rejuvenation of the body in the development of Jeunesse Global products. This is a relatively young network, registered in 2009. It appeared on the domestic market only in 2014, offering distributors six options for generating income at once, working exclusively online. At the initial stage, the partner receives a markup on products due to a 35% discount, a reward for purchasing a starter package, as well as commissions from sales of the involved team.

Russian version of the official website - jeunesseglobal-russia.ru.

Kyani

Kyani

The company has been operating since 2005, but it entered the Russian market only in 2013. The range is represented by natural juices and vitamin complexes, including noni juice. Most of the goods are made from products grown in Alaska. The company offers 12 types of income generation to network partners, including commissions for turnover without limiting the group level. At the same time, the achieved distributor rank does not decrease with a decrease in turnover. Financial data show that Kyani's annual sales revenue is consistently in the order of $1 billion, which speaks to the popularity of the product with the consumer.

Russian version of the company's official website - kyani.com.

One of the first Russian network companies based on a franchise purchased in the USA in 1998. The product range includes more than 150 items, most of which are bioadditives and cosmetics made on the basis of corals. Initially, the company's marketing plan had a linear scheme, which over time has been supplemented by many types of bonuses and rewards. When registering as a distributor, a 20% discount on products is automatically provided.

Russian network marketing companies

Undoubtedly, the USA is the leader in terms of popularity of the MLM business model, but our country has made significant progress in this direction over the past decades, introducing many high-quality products and promising cases for distributors to the world market. At the same time, the TOP network marketing companies in Russia are somewhat more diverse, and include networks that work with a wide range of consumer goods, and not just dietary supplements and cosmetics.

The network began operating in 2002, setting itself the goal of becoming a leader in Russian perfumery. Ciel Parfum's strictly linear marketing plan invites distributors to profit from markups on products. At the same time, in order to receive a 40% distributor discount, you must purchase one of the starter packages, costing from 25 to 75 dollars. For attracting a group and increasing turnover, the discount increases. The company's products themselves are of good quality and meet international standards, which ensures consumer demand.

This Russian brand using linear marketing undoubtedly tops the list of network marketing companies in Russia. The network began operation in 1997 and since 2003 entered the international market, delivering goods to 42 countries of the world. In recent years, the company has not only formed a network of 2 million distributors, but also absorbed several competing MLM companies. The main products are cosmetics, high-quality household chemicals, clothing and accessories. According to RBC, it is one of the fastest growing companies in Russia.

Network website -.

The main products of the company are medical equipment and household appliances for therapy and recovery. The network began its activity in 2005, and since 2009 it has received certification and permits from the Ministry of Health of the Russian Federation. The marketing strategy of the company provides for a linear scheme of cooperation with a distributor discount of up to 60% of the cost of goods. Bonus remuneration is accrued only for partners of the first level, but there are no restrictions on turnover.

Recently, a new company website has been launched - biomedis.life.

A Russian network that also works with medical equipment and, above all, devices for physiotherapy at home. It was founded in 1998 and today has more than 120 large warehouses located on the territory of the CIS countries. The assortment includes 15 types of devices, in addition to which dietary supplements and medical cosmetics have been included in recent years. The marketing cooperation scheme includes several levels, which include discounts on products, commissions from personal sales and the turnover of the attracted group, as well as rewards for reaching a certain rank. For new partners, the company conducts very effective training sessions. Today, this network is attracting more and more attention from both distributors and ordinary consumers.

We can say that this is the first domestic Internet project that successfully combined the MLM concept and the automotive industry. The network began operation in 2014 in Barnaul and today has more than 120 offices in various regions of Russia. The main essence of the project is to provide partner discounts for a wide range of services and goods. The marketing plan of the network is based on a matrix, which you can get into by becoming a shareholder of the project (by paying an entrance fee). To stay in the matrix, you need to invite 2 partners, but at least 7 are required to receive bonuses.

The official site of the project - auto-club.biz.

Domestic brand offering a wide range of health and beauty products (cosmetics, dietary supplements, perfumes, various personal care products). The network was founded in 1996 and today it is not only one of the leaders in the Russian market, but also operates in 16 largest European countries. The number of distributors of the network exceeds 150,000 people. The success of the company is ensured not only by high-quality products, but also by a very good marketing plan that does not require the purchase of a starter pack and any investment. Also, depending on the turnover, free training programs, travel at the expense of the company, a personal car, and even participation in a housing program are offered.

Official website of the company - siberianhealth.com.

It has been operating since 2006, but only in the last period there has been an active growth of the network. The MLM marketing scheme began to be applied in 2013. The main products are health products based on seaweed. When comparing network marketing companies in this product category, Werther Organic has two advantages - more affordable cost and the use of domestic products in production. The marketing scheme for partners includes a distributor discount, seven levels of leadership rewards, team turnover bonuses, partner education programs, housing reform, and inheritance of achieved results.

Internet representation of the network - vertera.org.

Perfume manufacturer from Russia, producing products strictly according to GOST. Litani has been working under the network marketing scheme since 2016, offering potential partners three opportunities to become a member of the system (client, trainee, partner) and two options for earning income (up to 28% per distributor turnover and incentives in the form of a car and tourist trips). Despite a large number of competing companies, in recent years, Litani has been systematically expanding and conquering the market, which makes it a promising direction for earning.

Official website of the company -.

A network selling a wide range of quality household goods (environmental detergents and cleaning products, textiles, household appliances, car care products), operating since 1998. Despite the fact that the company is Russian, the products offered to consumers are supplied from European countries and the USA. Currently, it has registered more than 500,000 distributors distributing goods in the near abroad. A cumulative marketing plan is offered for partners, according to which you can receive discounts and earn on retail sales, get a trade loan, and also secure interest payments from the turnover of the involved team.

A young Russian MLM network that has been operating since 2014 and is characterized by stable growth. The main product is Omegaferol oil, which consists of plant components. Dietary supplements and other products for a healthy diet are also presented. The cooperation scheme offers two formats: linear when cooperating as a client (discounts on products) and binary when forming a partnership (building a balanced network).

Summing up, it is worth noting that the list of network marketing companies in Russia is regularly updated with new projects, which can also be an excellent start for you in the MLM business. On the other hand, before entering into a partnership, it is important to analyze not only the terms of cooperation, but also the relevance of the product itself with which you have to work.

Hello! Today we will talk about network marketing. We will just talk about it, but this does not mean that we urge to deal with it. This article is just a review of the tool, nothing more.

It is difficult to say what network marketing is in a nutshell. Someone calls this earning scheme a real “scam”, someone talks 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 is it 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 using 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 him, they, in turn, tell their friends, and as a result, a kind of network is obtained, in which it is very easy to distribute the goods.

For each invited person receives a percentage of his profits. Of course, various psychological techniques are used to attract people to network marketing. Not everyone will find this work 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 compare network marketing to pyramid schemes. Yes, the scheme is a bit similar, but in the case of network marketing, no one forces a person to invest a lot of money and just sit, waiting for a miracle. If you work, constantly increasing the base, you can first go to zero, and then to a plus. Unfortunately, in large networks you will already be too far from the top, so you should not expect sky-high fees and life in the Maldives, but a couple of tens of thousands of salary increases are quite real.

Network marketing system and principles of its functioning

• Any network system must somehow serve the distribution of a product, product, or a particular service that a company or group of people provides;
• If the flow of goods or services stops even for a few days, the money stops flowing and the system collapses completely;
• There must be many representatives of the lowest level in the system, 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, where specially trained managers talk to potential buyers, describing all the prospects in bright colors. There may be an 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, you will not receive a large amount in the first month).

If you have agreed to register, some companies may require you to pay an entry fee to the network 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 sin with this - masters who have been on the market for several decades will never do this, reputation is too important for them.

After that, the actual work begins. That is, a constant search for new sellers who can be connected to the network after themselves 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 earn, leaving behind an empty office and a girl manager in a pre-infarction state.

How to make money with network marketing

In total, there are three ways to make money in a similar company:

• Resale of products. To do this, a certain product is bought at a wholesale price and sold from friends at a 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. Usually bonuses are based on the number of sales, although there are certain exceptions. Such earnings are highly dependent on the company in which the person works - some do not offer anything at all for overfulfillment of the plan, and someone very generously gives for every important figure;
• Receive funds from interest that drips from workers who were directly invited by you and your friends. The more such people you have under your control, the greater the amount. If you stand at the beginning of a large grid, you may not work at all - but it takes a lot of time and effort to build it, and besides, if some distributors get disappointed and leave, you will have to return again to expand the grid 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 customers. Be prepared for misunderstanding, for the fact that you will simply be banned on social networks, for the fact that you will be trolled and sent in personal correspondence - unfortunately, not all network users adequately respond to network marketing on the Internet.

Network marketing on the Internet

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

Among other things, in order to succeed in network marketing, the 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, perhaps, should be in the first place: 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 - well, or just buy some is the quantity of goods.

Are modern people 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 thought at least once about this way of earning money. Modern leaders in network marketing, such as Oriflame, Avon, Faberlic, Vision, Amway, LR, Tian De and Siberian Health, still get into the top queries, according to a special service that determines which words and in what quantities and combinations users usually google.

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

Advantages of network marketing

• You can make big money if you really try. To achieve the 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 yourself decide when to sell the goods and receive your own proceeds, the employer does not track this moment at all. Well, a bonus is financial independence from loved ones, for example, from a husband or parents. It’s just that full financial independence cannot be achieved - all the risks associated with force majeure will remain.
• Having your own business. This is not really a business, at least at the very beginning of the development of your particular network. In a year or two it will get better, and you can be called 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 will not even be any nasty “buts” - in network marketing they pay special attention to this. People there are quite friendly, but not everyone is ready to go beyond communication, limited to work. There were cases when very interesting people turned into workers who were no longer interested in anything but profit. It's not worth bringing this up.

Cons of network marketing

• Earnings are completely unstable. No one guarantees you that the woman over there who bought all the purchased goods from you this month will do the same next month. If you suddenly fell ill, missed a meeting with a client, or simply didn’t like someone, you lost money, and now you won’t get it back. In general, a rather inconvenient scheme that requires constant work and saving in an emergency reserve.
• The moral burden associated with constant communication with customers. Even if you are extremely sociable and friendly, people will not always be happy with you. Not all potential customers with whom you will communicate will behave adequately, and if you are going to meet in person, you can get injured or damaged equipment with the 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 is not a fact that the purchased product will pay off, so at first distributors try to buy what they themselves can later use. A few thousand rubles is a normal price to start a career in network marketing. If at the moment they are not available, we suggest that you familiarize yourself with the information.
• Responsibility for the people you have invited to work under the same scheme. In principle, if a person's moral principles are not the highest, he may not pay attention to this point. So, train a couple of people and forget about them until the moment 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 a brief description of the facts that debunk them. Read carefully, and if after that you are not disappointed and are ready to start working, proceed to reading the next paragraph.

Myth: The network is the best way to open your business quickly and with virtually no initial capital, having stopped working for your uncle.

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

Myth: Buyers on the Internet love it when the goods are offered to them by representatives of online retailers, and not 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 relatives, 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 refuse to trade through ordinary stores and switch to network trading.

Reality: Brad of pure water. 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 can change your lifestyle and just be happy.

Reality: Never believe motivational posters and commercials, because often they tell lies. In addition, energetic and constantly developing people are unlikely to enjoy 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 rather irritable person and cannot calmly respond to rudeness and remarks, any calls to customers will more likely bring you out of a state of peace of mind.

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

Reality: And now let's imagine ourselves in the place of such a person: he lived a conscious life, choosing means and things that were convenient for him, and then bam - a seller 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, taking up sales for only an hour or two a day.

Reality: No no and one more time no. Selling at the initial stages will require you a mountain of time, which many most likely do not have. At the same time, you still have to look, since combining network marketing with your main job is simply unrealistic - if you want to get at least something.

Myth: Employees who are already online are interested in your successful work and development. Working in network marketing allows you to strengthen the spirit, to understand that you can run your 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 are different concepts, and such a scheme is unlikely to have anything to do with personal freedom.

What to do if you are still interested in network marketing

Criteria for choosing a network company

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

• The product they offer. It should be safe and moderately 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 it will be on your conscience.
• Company age. If it was organized a week ago, then the likelihood that this is another fraud, after which the organizers will disappear into the sunset with your money, is very high. The most reliable are companies operating on the market for at least 5 years. This criterion makes it possible to weed out financial pyramids: a financial pyramid, even the most organized one, will not last five years. Unscrupulous network companies in the first five years squeeze all the juice out of users and also stop working, in the rest you can try to make money (although the competition will be much more serious).
• Marketing plan. It is better to compare it with the plans of other companies that you decide to consider. Compensation payments through the network - the most important thing, you should find out about the conditions for accumulation and payment first of all.
• Training in the basics of distribution work. A very important point: if you are required to pay, then most likely you will not be able to work with them. The same if the imposed courses do not help in any way, but simply take time. Just stop going to them, and if suddenly they refuse to pay you without courses, leave there - no one guarantees that after training you will be paid what you earn.
• Fame matters too. If a company is known in at least three countries, then 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 a bad repair) or an official website, then feel free to break all ties with the company, because there will be nothing good from such cooperation. Be sure to check the site for performance and content 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 on fire with the idea, and they themselves are actively involved in sales, and not just pretending to interest you, if their pages on social networks look more like real than advertising, then you may well trust them. Remember: you should not evaluate the 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 on the basis of sales volume in recent years:

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

And now more about each company.

Amway

An international company that offers customers more than five hundred items of goods that allow you to maintain beauty and health at the appropriate 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 amount of the company's products, he receives an additional reward;
• Products are purchased at wholesale prices from the company, and the distributor must sell them at a markup of 30%. It is these percentages that are the main income of a person at the initial stage of work in a network company;
• Additional earnings begin if a person invites his friends to the team. The more distributors and consumers he leads, the more profitable it becomes for him to purchase goods specifically, and the greater the amount he will receive from one transaction.

This company is a real example of how people can earn money without actually leaving their homes. Of course, you won’t be able to achieve the same in a couple of weeks, but if you advertise yourself properly and find regular customers, you will get a good increase in your main 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 are contacting a real representative, and not a charlatan hiding behind a well-known brand.

The company is famous for offering not just cosmetics: in the catalogs you can find costume jewelry, perfumes, small nice accessories for women, etc.

Features of work

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

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

Herbalife

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

Features of work

• To get started, you need to purchase a special set. It will not work 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 make-up application on the market for fifty years. Fame in other countries is not so great, representatives in less than forty countries, but this does not prevent the company from stubbornly holding on to the first places in the tops of network marketing in Russia.

Features of work

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

Vorwerk

This company, unlike the above, has nothing to do with cosmetics and body care. The catalogs contain appliances, kitchen equipment, etc. There are representative offices in more than 60 countries of the world, and specifically in Russia, such goods can be bought for more than ten years, so the reliability of the company is at the 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 only a percentage of sales. There is no additional income for attracting new employees;
• The Consultant can receive preliminary free training in the basics;
• The company constantly runs some promotions aimed at encouraging good employees.

Unsuccessful examples of network companies

You must understand that there are different types of 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 proper level of work.

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

How not to break loose and work

A few final tips:

• Always find out the full information about the product that you are going to offer to customers.
• Don't advertise all at once, let the buyer get used to you, explain what you do, learn about your preferences, and only then start the presentation.
• Watch your appearance and manners. People who look bad tend to sell much less.
• Train. Read books, attend trainings, do everything to become more confident and calm.
• Analyze 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 in no case do not bring aggression into it. If the seller starts to push, people feel it and almost immediately “merge”.
• In no case do not spoil relations with relatives, friends and colleagues. You can stop getting involved in network marketing, and then your whole 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 way.
• If possible, use the product yourself. Make additional advertising in this way - believe me, it will be interesting for potential customers.

Results

So, let's summarize briefly. For starters, be extremely careful. Never get involved in an initiative if you do not like it, in no case do not 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 said by representatives, look for people they talk about on social networks - sometimes you can find a lot of interesting things in photos or in groups. Such a short 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. Maybe it's just not for you? There are people who can't bring themselves to do math, and this kind of work just doesn't suit 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 roll in right now - just return to your old job and try to console yourself with the fact that many people besides you also cannot withstand such a race and refuse from "easy" earnings.

Every day, thousands of people around the world are trying to discover ways that could provide them with the opportunity to receive a basic or For this, they have to look at the vacancies that have appeared on the labor market or study certain ways of earning.

To help solve the issues of generating income for each person allows network marketing. Reviews of professionals in this matter clearly indicate that success can only be achieved if the right steps are taken at the start of a career in MLM.

It is rather difficult to explain what network marketing is in a nutshell. Some people, when faced with such companies, call the schemes they created for earning a real "scam". But there is also an opinion to the contrary. According to him, network marketing receives reviews as the only opportunity to open your own business without the initial investment of large sums of money in its development. So which of these two opinions is correct? In order to understand this, you need to understand the question "Network Marketing - what is it and how does it work?".

Only after collecting detailed information about the MLM system, each person will be able to come to certain conclusions and decide for himself whether it is worth working in this area, or leaving it for others.

What is MLM?

This abbreviation stands for: MultiLevel Marketing. And this means nothing more than "multi-level marketing". It is also a direct selling system.

Network marketing (MLM) is a special way of promoting a particular product with the help of a whole network of people who receive a certain percentage of sales or a reward for attracting newcomers to the company. A person simply tells about the product to his acquaintances and friends, and they, in turn, distribute such information further. As a result, a kind of network is formed that contributes to the rapid sale of goods. This is the essence of network marketing.

Inviting people to the company is very profitable. After all, for each new buyer, a person has a certain percentage of the profits received. However, expanding the network of buyers is far from simple. Often, a variety of psychological techniques are used in network marketing for this. Not everyone likes it. That is why, before inviting a new person to the company, network marketing professionals should explain to him the essence of such a product distribution technology and explain the advantages that this work has.

A bit of history

The first company operating on the principle of MLM appeared back in 1927. It was then that the creator of nutritional supplements, K. Rehnborg, laid the foundation for multi-level sales, in which he achieved good success.

Initially, K. Rehnborg was engaged in ordinary trade. However, a moment soon came when the demand for products became much higher than its capabilities. And then K. Rehnborg came up with a great idea. To distribute the goods he created, he began to attract acquaintances and friends, offering them an appropriate reward.

Somewhat later, Lee S. Mitenger and William S. Casselbury, who came from this company, which was called Nutrilite Products, developed the basic principles of such sales. Soon MLM gained popularity all over the world. By the end of the 50s of the last century, on the basis of the company that laid the foundation for a new type of product distribution, the now widely known Amway distribution network was founded.

But the MLM scheme and companies working in this area received particular popularity in the 80-90s of the 20th century. And today they offer a very extensive range of products, which contains almost everything from vitamin supplements to dishes, cosmetics and household appliances. Which companies have chosen network marketing for themselves? "Oriflame" and "Avon", "Faberlik" and "Zepter", as well as many others. According to experts, some of these companies have an annual turnover of products offered on the market that reaches about 200 billion US dollars.

learn to distinguish

Sometimes a network company is compared by those who first encountered MLM with a financial pyramid. Of course, at first glance, the scheme by which sales are carried out is not very simple. However, with regard to network marketing, here a person does not need to invest a lot of money, then just sit in anticipation of a miracle.

If this is real network marketing, how to make money in this area? It will take a lot of effort to grow your customer base. At first, there may not be any profit. However, if you make some efforts, then soon you can start receiving a certain income from sales. If the network is too large, then the newcomer will be far from its top. In such cases, he should not wait for a move to the Maldives or sky-high fees. But a couple of tens of thousands as an increase in salary is quite real.

However, before you become an agent and start to interest clients, you need to pay attention to certain points. They will avoid the financial pyramid. So:

1. True network marketing offers to sell a specific product or service that is contained in the manufacturer's catalog. For the future, products are never purchased. Only those products that have been ordered by customers are subject to sale. Payment for the goods is made on the day when it is received from the warehouse.
2. A pyramid scheme company will require the payment of membership fees or the purchase of "securities", which, outside of this organization, are nothing more than ordinary candy wrappers. In addition, with a financial pyramid, each person receives a profit not at all from the volume of products sold by him and his network, but from the number of those people whom he brought to the company and who paid her membership dues.
3. Another type of network earnings that is questionable is the implementation of various equipment or software. Before starting work in such a company, you will need to pay for a certain package of services that allows a person to take one place or another in the trade chain. These can be various tools for working in the form of a plastic card or a personal account, the use of which is impossible without paying a subscription fee. Where can you find such network marketing? Examples of such a business are far from isolated. For example, Talk Fusion attracts potential clients and agents with offers of income that can only be generated after paying a certain amount in advance and attracting two or more newcomers. The chain created in this way will be profitable. Such a scheme is more similar to a financial pyramid, although the company still has a product that needs to be sold. But, in order to succeed in this firm, a person must have the qualities of a psychologist, speaker and leader. And in this case, he is unlikely to be able to rise from the entry level to the very last step.

From the foregoing, we can conclude that successful earnings in an MLM company are possible only after a preliminary study of all the conditions for cooperation. Only by making the right choice, you can achieve successful promotion.

Assessment of prospects

How to start making money in direct selling? To conduct such a business, a reliable and promising network company should be chosen, which will achieve the desired result. The best start option is a well-known brand. When choosing it, you will not need to make great efforts in order to convince customers of the need to purchase. Cosmetics manufacturers such as Faberlik or Oriflame, as well as companies offering household goods (for example, Amway) are popular. These products have already been appreciated by consumers, and they will buy them without any fear.

However, it should be borne in mind that other distributors have already managed to occupy the niche of well-known brands. And for those who have chosen network marketing for themselves, how to make money in this case? A high level of competition will require the use of a special strategy, without which it will be impossible to create a customer base and start earning your own passive income. Of course, in this regard, it is easier to make money in a newly created network company that offers a product that inspires consumer confidence, but at the same time is in short supply on the market. These are new dietary supplements, training courses, devices for health and home, etc. The choice of one direction or another will largely depend on the personal interest of the person, as well as on his desire to make money on it.

Rating of MLM companies

There are a large number of manufacturers on the Russian market who sell their goods by direct sales. What are network marketing companies? Their rating contains those brands that occupy almost 70 percent of the MLM market. Avon is number one on this list. Followed by Oriflame. Third place belongs to Amway. On the fourth is Mary Kay, which offers cosmetics. The fifth place in the ranking is occupied by Faberlik.

The remaining companies are considered smaller and cover the remaining 30 percent of the market.

Education

If network marketing is chosen as the direction of business, how to make money on it? Attention should be paid to the assistance provided by the representatives of the company to newcomers. It may include various manuals and video tutorials, trainings and meetings. All of this is usually provided free of charge. Sometimes curators help in attracting the first customers. Without training, it is impossible to work in MLM at any stage. The more detailed information a person has about the product and its benefits, the easier it will be for him to convince other people that they need it. That is, persuasiveness directly depends on the existing knowledge base. The experience of MLM professionals also helps, who will definitely tell you how to make a profit faster, as well as attract new people to create passive income.

Receiving a profit

An important point when choosing a network company is to study the scheme for accruing cash and bonuses. After all, earnings are the main motivation for any person.

With a fairly transparent scheme for generating income, the absence of penalties, as well as unrealistic targets for the sales volume offered by the company, work in the selected network company is quite capable of bringing good results.

Action plan

After choosing a specific network company that provides an excellent opportunity to earn money, it is recommended that you draw up a business plan for yourself that will allow you to understand what should be paid attention to.

So, it is worth choosing a way to receive money. It can be a direct sales method or use a passive option. Which one is more promising? Often product distributors tend to start with personal selling. In doing so, they get the opportunity to explore demand and build a customer base.

Professionals who have perfectly studied network marketing look at this issue somewhat differently. How to make money, according to their advice? MLM gurus recommend that beginners start from two positions at the same time. Indeed, among potential customers there will always be people who want to receive additional income, as well as those who wish to purchase products at the purchase price.

Networkers who are at the highest or middle rung in the hierarchy of the distribution scheme note that they owe most of their earnings to the work of subordinates, and not at all to direct sales. Thus, after some time, having built up a client base, you can generally refuse direct sales of products, having made the right motivation for the entire multi-level structure of agents.

Sales Methods

How to get a good income in a network company? To do this, you need to find the most effective methods to attract customers. There are several of them:

1. Direct contact with people. This method is used if a person working in a network company has free time to visit public places or has a very large circle of relatives and friends who are not yet involved in the MLM business. However, judging by the reviews of professionals, this method takes a lot of time and is often ineffective. This option is relevant for the already existing list of customers who only need the delivery of catalogs and products.
2. Creating a consumer base using social networks, your own website or online store. In this case, less time will need to be devoted to work, and the coverage of the audience of potential customers will be much wider. In this case, only those users who are interested in the company's products or wish to receive additional income will respond to the offer.
3. Creation of contextual advertising and landings, sending offers to ad sites and e-mail.

Everyone who wants to make money in network marketing can increase his profit several times if at the initial stage 2-3 MLM companies are selected at once. So, customers can be offered several brands of cosmetics, as well as products intended for face and body care at the same time. This option is also beneficial in that the cost of the product from competing companies has differences. This allows people of different incomes to choose goods from the desired segment.

Knowing one's own character

Not everyone can succeed in network marketing. In order to receive a high income, you must have the following qualities:

• patience and stress resistance;
• sociability, which implies the ability to speak, and then keep up a conversation with any person;
• perseverance, which will allow you to achieve your goal, sometimes returning even to where a refusal has already been received;
• psychological skills that allow you to convince a person of the need to purchase a product;
• leadership qualities that will make it possible to develop a chain of passive income;
• oratorical qualities to speak confidently, correctly and beautifully;
• the ability to plan your own time, which will prevent fuss, eliminate inconsistencies in scheduled meetings and leave yourself time for relaxation and self-education;
• trading skills.

A person with the qualities listed above, applying all the rules recommended by professionals in this field, will certainly succeed in network marketing.