Leading Network Companies. Network marketing by the consumer. What business to open

Does everything more people. Network marketing reached its highest heights in Russia. The rating of companies in 2018-2019 clearly shows the development trend of such enterprises. But they decide to cooperate with them only indirectly, still considering such work as another pyramid scheme. Is this opinion justified?

We will try to understand all this in this article, with illustrative examples and facts.

The scheme of network marketing is quite simple. There is a company that makes certain kind goods or receives in bulk the products to be sold.

To distribute your product, you need workers - distributors who find potential buyers, conduct advertising (usually, they clearly talk about the functional features of the product) and take orders on the spot. They are found using a referral system - a chain where one employee offers profitable cooperation to others, and they, in turn, to a third.

The salary of a sales consultant depends on the share received from the sale of goods. The company benefits from the retail value of products, which exceeds store prices, but in this case no funds are spent on advertising, on wages sellers (bid). The distributor chooses for himself the level of earnings by selling the product.

What this employee needs:

1. A proven company that brings real earnings.
2. Base of clients, due to which the percentage will go.
3. Ability to convince and present a product.
4. Desire to develop as initial stages it will be difficult enough to stabilize earnings.

An additional incentive for the distributor is to receive a fixed income from involving other people in the business. Such a referral system allows you to receive a percentage not only from your sales, but also from the income of the invited employee.

Many such earnings are compared with a financial pyramid. But there are differences:

sales consultants do not pay upfront fees, which are required in the financial pyramid for dubious documents and agreements.

In this case, the sale of real goods is carried out, at inflated, but favorable prices for the population. This business operates legally and does not violate the laws.

How to start a network marketing business?

When choosing a job in the field of network marketing, important aspect is a convenient marketing plan. Everyone chooses for themselves the option according to their needs. There are a large number of franchises for remote earnings in the domestic market: (cosmetic, tourist, legal).

The very first company related to marketing was Mary Kay, which began its distribution more than two hundred years ago.

Initially, the cosmetics company worked offline: it created trainings, brought distributors as part of the bonus program, and sold its products in different cities and countries.

But the network began to work not among the first. This was the first step in the development of such a business, and other brands began to equal Mary Kay.

Other companies are also actively promoting their product on the World Wide Web - Avon, Faberlic, Oriflame, NL and Amway. At the moment, they occupy a leading position in the ranking of successful grid companies in Russia.

How do you find the perfect network marketing business for you to work on?

Beginners should get comfortable in this business by attending various trainings, consulting with more experienced workers. Many companies create a step-by-step training system that allows everyone to move up the career ladder. In addition, MLM organizations at the first stages of training and work provide training material, video tutorials.

Brand

To test the reliability of the company, you can opt for start-up firms or give preference to already established franchises. , which only stands at the origins, can only recommend itself, develop, develop a client base in order to get easy money.

But to promote the brand, you should work on the name, distribution and advertising of products. Because people do not yet have an idea about the new product.
A solid, already established company also has its positive aspects.

The product has already been promoted, and it is sold with great demand. If the company has confirmed its name, then in the coming years it will not close. Among the minuses are the requirements for applicants for distributors.

Product quality

What commercial network companies produce must be of high quality and environmentally friendly. Since this type of business is distributed as word of mouth, any dissatisfied buyer can spoil the impression of it.

In addition, there are other criteria for evaluating products:

Limited shelf life. This is necessary so that there is a constant demand. If the product has a shelf life of more than a year, then the distributor will practically not be able to find an interested client.

Therefore, cosmetics, chemicals, perfumes, personal hygiene products, and household goods are considered ideal distribution options.

TOP 5 successful network marketing companies in Russia in 2018-2019

Oriflame

In addition to cosmetics, there is a Wellness line that guarantees health.

To receive a salary or a good discount, a consultant should achieve a turnover of at least 6 thousand rubles. A 20% discount is given at the first stage.

If the consultant reaches these 6 thousand, then the income from his structure is automatically calculated and submitted, with the release of the next catalog, 12% is returned upon the personal order of the employee.

From this we can conclude that a person who is going to build his marketing business, upon reaching the turnover, receives a total discount of 32%.

Interesting fact. The company owns five factories and a leather research institute. Scientific works are constantly published on the official website, there are personally patented formulas.

You can join the Oriflame team right now. Going by link, you leave a request and an experienced competent specialist will give you detailed instructions for cooperation with the company. In addition to this, you can count on round-the-clock assistance, support and free training.

The advantage of modern network marketing is that you don't have to leave your home to build your successful network business. Almost all work processes take place in the virtual space.

Avon

The marketing company started its work in 2004. And since 2010, it has been actively introduced into the network. To register as a coordinator and get the opportunity to invite people as referrals, build a business on their own, copies of documents are sent to the company on the official website, after which registration is carried out.

As pluses, one can name the minimum prices for purchases from 1.6 thousand rubles, since cosmetics are available to 95% of the population. Avon company guarantees a bonus program - 125 thousand rubles. But it is possible to get it if the coordinator recruits the first line of the catalog for 5 new active workers throughout the year.

The company has certain plans and turnovers, for failure to comply with which you can lose the opportunity to obtain qualifications. The company gives a discount on each product.

If the employee orders products for himself, then the discount is 15%, when the plan is fulfilled, the bonus reaches 32%. From this we can conclude that if an employee does not fulfill the plan for recruits, then he must independently fulfill the sales plan for them.

How to develop your network team

1. Blogs. Before you start blogging on Instagram or others social networks need to develop a client base.
2. Distribution of letters with advertising of production.
3. Providing discounts and assistance in consulting on the city's website.

To receive your first income, you do not need to register an individual entrepreneurship, the transfer of wages is carried out on a card. The company rarely conducts trainings at the All-Russian level.

In each city there is an office of the company where you can turn for advice. The first line of recruiting has an almost endless plan. If the plan is not fulfilled, the company has the right to terminate the contract with the employee. There is no international sponsorship.

Faberlic

The company has been operating for about 20 years in the marketing market. The company began its activities in Russia, which consultants never cease to remind. Faberlic pays a bonus amount after the employee reaches a certain rank - Director.

Bonus 55,000 rubles are paid after the closing of this title. Mandatory turnover is the achievement of 50 points with the expectation that 1 = 80 rubles. The mandatory purchase should be 4000 rubles. The director reaches a turnover of 400,000 rubles.

The company contains a plan for recruiting the first line. Any Director level has a gap. If the consultant has 2 closed directors in the first line, then an additional growing group with a turnover of 1000 points is required to generate income.

If the super-Director does not have a personal group, then he is not given wages for this line of the catalog. This means that passive income is not possible in this case. If the plans are not carried out, then cosmetic company can terminate the contract with the employee. There is a possibility of going abroad.

NL

Individual entrepreneurship registered in the Russian Federation. The company's products are - Energy Diet - expensive, but high-quality dietary food.

One of the few companies that cooperates with equally well-known marketing franchises, for example, Oriflame. Therefore, beginners have the opportunity to get advice about food, as well as cosmetics.

To receive wages, there must be a commodity turnover of 21 thousand rubles for the period. The company is quite profitable, despite the narrow focus and high cost.

Amway

The business of this network company operating in Russia in 2018-2019 is built on the sale of household chemicals, washing powders. Available negative sides. The newcomer pays a small fee to conclude an agreement with Amway.

The product is expensive and has a fairly long shelf life. Commodity turnover in the exchange of 10 thousand rubles. Some household product is consumed quickly, which allows you to find a sufficient number of buyers. The sale of household chemicals on the Internet is practiced. To do this, they show the capabilities of a particular product online.

Conclusion

Successful Russian network companies are located in a certain professional organization that has developed and established in practice, which is able to build a stable system to ensure the profitability of personal investment.

New hires should prepare for a slow but promising bottom line, as large sums in the first months are almost impossible to get. Especially it concerns big companies where there is a lot of competition. Therefore, experience is needed in such a business and it is recommended to start with a small company, smoothly moving to global markets.

1. Anatoly
2. Evgeny
3. Alexander
4. Ludmila
5. Sergey
6. Danir
7. Alexei
8. Irina
9. Sergey
10. Olga
11. Karina
12. Olga
13. Anna
14. Arthur FLP
15. Anna
16. Victoria
17. Natalia
18. sadiya
19. Irina
20. Vladimir
21. Waist
22. Natalia
23. Ekaterina
24. Milan
25. Tatyana
26. Rufina
27. Michael
28. Svetlana
29. Svetlana
30. Olga
31. LANA
32. Boris
33. Oleg
34. Katia
35. Andrei
36. Valentine
37. Nelly
38. maryam

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, in Russia, the production of some types of brand products has been established. 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 various countries peace. 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 customers. Zepter offers its distributors a linear marketing system.

Russian web representation -.

Young French MLM company with linear system marketing, which came to the Russian market in 2013. The main product line is natural cosmetics at an affordable price, 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 sales volume. 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 the purchase starter pack, as well as commissions from the 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 revenue from sales of goods is consistently in the order of $1 billion, which indicates the popularity of products 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. Marketing strategy 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 products for health and beauty (cosmetics, dietary supplements, perfumes, various means personal hygiene). 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 countries Europe. 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 represented by health products made on the basis of 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.

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.

The peculiarity of this MLM company is high level 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, the 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 feature.

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.

Hello, dear readers of the financial online magazine "RichPro.ru"! The topic of today's material is network marketing (MLM): what is it, which MLM companies in Russia have a high rating, how does the network business work, and so on.

After all, for many centuries the model of distribution of goods and services " manufacturer – large wholesale. – small wholesale. – retail – buyer' was the only possible one.

Butin30s years XX century in the United States, a product distribution system was born and subsequently developed " manufacturer – distributor — buyer».

At the same time, the activities of MLM companies long years fanned by various rumors, comparisons with financial pyramids and ambiguous public opinion. Based on this for objective view for this type of business, all aspects and nuances of network mlm marketing should be considered in more detail.

So, from this article you will learn:

• What is MLM - the history of the network business industry;
• The main advantages and disadvantages of network marketing;
• What network companies of MLM business are the most popular (ranking by sales volume in the world).

After reading this article, you will determine for yourself whether it is worth doing network multilevel marketing, find out which companies are better to choose and why, read the reviews of "experienced" mlm marketers.

What is network marketing and how it works, what is the basis of the scheme of cooperation with MLM business, which MLM companies have high ratings and much more, read below in the article

Network marketing is a system for the sale of goods and services from the manufacturer to the buyer, which is carried out through recommendations from person to person.

The core of the MLM business is in non-store retail, in which the distributor independently establishes contact, advertises and sells the product to a potential buyer.

In addition to earning from retail sales, a sales agent offers consumers, for a percentage of sales established by the company, find new buyers , which, under similar conditions, "attract" regular customers. The result is a multilayer network.

Network Marketing Tasks

• Product pricing optimization. Before 70% the retail price of everyday goods is the cost of the distribution network and advertising. Changing the distribution structure allows you to reduce costs.
• Providing the customer with quality, genuine products. With traditional product promotion, there are obvious prerequisites for the emergence of fakes on the market, and they are absent in the direct sales method: the product is not as widely known as its analogues from the traditional market, the manufacturer, distributor and buyer are not interested in the appearance of counterfeit products.
• Improvement of the product delivery system. The manufacturer's control over the logistics and storage of goods allows us to provide the consumer with a product of the proper quality and in optimal timing(Read the link in the article).
• Improving the distribution of profits of the manufacturing company. Reducing costs allows you to direct financial resources to incentive programs for sales agents, various bonuses and incentives, as well as improve product quality.

Let's take a look at how network marketing works.

2. How network business (marketing) works - the principle of operation of MLM companies 🗺

Multi-level marketing is an interaction between a manufacturer, an entrepreneur and a buyer.

How multilevel network marketing works - 3 sides of profitable cooperation with MLM

2.1. Network marketing by MLM company

MLM company on own factories manufactures products. She also develops a marketing and sales plan, on the basis of which the proceeds from the sale of products are distributed.

As a rule, a business plan motivates distributors in several ways:

• a) consume the products themselves;
• b) sell goods to customers;
• c) create a network of entrepreneurs.

Manufacturers organize the delivery of products to their own warehouses in different countries and cities, as well as ensure that distributors receive goods at home.

For proper efficiency, entrepreneurs receive all necessary materials on products, master classes, seminars aimed at developing various skills are held.

2.2. Consumer Network Marketing

A distinctive feature of the direct sales method is the creation of convenient conditions for the buyer:

• Delivery. Entrepreneurs, as a rule, bring goods to their homes.
• Service. Before buying, the buyer receives all necessary information about the product. Also during the operation it is possible to consult with the distributor.
• Quality Assurance. Most MLM companies guarantee product quality, with the possibility of a refund in full size in case of customer dissatisfaction.

2.3. Network Marketing by the Entrepreneur

Multilevel Marketing - a very attractive type of activity for people who do not have a large initial capital and business experience.

The entrepreneur has the opportunity to independently plan his employment based on his capabilities. Most employment in this type of business is observed among students, housewives and pensioners.

Some terms and definitions used in the network marketing business:

Distributor - a sales agent who has an agreement with a direct selling company and receives a commission for the sale of products, as well as a percentage of commissions for the turnover of the network created by this entrepreneur.

Sponsor (partner) of the 1st level - a sales agent who introduced the consumer to the possibilities of this business and helped to conclude an agreement with a network marketing company.

Sponsorship (affiliate) line - a list of entrepreneurs directly interested in the success of the distributor, which includes a 1st level partner, his sponsor, etc.

Side businessmen – a set of distributors that are not part of either the sales agent's subnet or the sponsor's line.

Bottom line partners – a list of agents included in the distributor's network.

Organization Width - a set of partners of the 1st bottom line.

Depth of organization — all agents of the 2nd and subsequent bottom lines in the distributor's subnet.

Active income - monetary compensation for the work performed by a person. Income depends only on the quantity and quality of labor invested.

Passive income- profit received by a businessman constantly, for one-time work performed. To receive this income, a prerequisite is the availability of assets, which can be real estate, bank deposits, shares, etc.

8. Advantages and disadvantages of network marketing - an overview of the main pros and cons of MLM business 📃

MLM - business has a number of advantages and disadvantages. The assessment of this type of activity in the media, among reputable businessmen, and politicians varies greatly.

Advantages of MLM - business and its advantages

Let's consider the main ones:

1. Low entry barrier to the market. When opening any business, an entrepreneur evaluates the resources that he needs to start in the market. In a direct selling business, little money is needed to start a business. Also, there are no costs for renting premises, warehouses and other fixed costs.
2. Possibility of doing business on the Internet. Since the end of the 20th century, more and more consumers, manufacturers, and businessmen have been making purchase and sale transactions on the World Wide Web. Doing business online is an indisputable advantage of business.
3. Product quality. Due to the peculiarities of MLM marketing plans, companies are able to allocate large sums for the manufacture of quality products compared to competitors who use traditional marketing to promote their goods.
4. Tutorials. To develop the skills of sales agents, direct sales companies are implementing training programs that include books, CDs, seminars, and a variety of training and presentations. This information allows you to develop not only in sales, but also contributes to personal growth, improvement family relations etc.
5. Part-time employment. Opportunity to work in free time and at the same time have an income from the main activity.
6. affiliate program. Sponsorship (partnership) line is interested in the success of the distributor. More experienced partners support, help and advise newcomers in every possible way. Relationships are built on equal terms, regardless of income.

As you can see, there are significant advantages for which you should start this business. We also suggest reading the article - "", perhaps you will find useful information there for yourself.

Disadvantages and cons of network marketing

Consider now the main disadvantages:

1. Reputation. Due to the lack of restrictions and the selection of agents, sometimes new entrepreneurs conduct business incompetently: they impose products and the business itself, give false information and thereby compromise this type of activity in every possible way.
2. High likelihood of worsening relationships with friends and loved ones. Most of the population prefers employment. In the case of doing business without an office, warehouse and employees, friends and relatives have a negative attitude towards this business.
3. Slow or no business growth. As a rule, the entrepreneur receives the first significant results in the period from six months to two years, subject to systematic work and training. A very large number of distributors have not been successful in this business.
4. The vast majority of proposals for cooperation are rejected. Active participation in business building 80 — 95% of the work does not bring results.
5. Only a few entrepreneurs achieve significant success. On the way to success, a sales agent encounters a lot of difficulties, overcoming which requires perseverance, education and work on oneself. Not everyone is ready to overcome all possible obstacles.

Above, we presented the main disadvantages and disadvantages of conducting cooperation with MLM companies.

9. Rating of network companies in Russia - a list of the most popular MLM companies 📑

The first mentions of network marketing in Russia are dated 90s of the XX century and associated with the company Herbalife". The company's products quickly spread throughout the country. Tempted by new business opportunities, thousands of people have decided to cooperate with this organization. Expecting quick success many distributors endured collapse , attributing to the fact that the activity of this company is illegal .

At the same time, many financial pyramids appeared in our country, which have resemblance with MLM companies. All this affected the reputation of this type of activity.

Despite these factors, the direct selling business in Russia developed significantly in the following decades.

By the beginning of the new millennium, all global leaders in network marketing are present on the Russian market.

In this table, you can consider the most popular network companies in Russia.

No. p / p	The name of the company	Brand country	Products	Share of MLM market in Russia (%)	Sales volume in the world, billion $
1.	Amway	USA	A wide range of products: household goods, cosmetics, vitamins, dishes, water filters.	8,1	9,5
2.	Avon	USA	Inexpensive cosmetics for the middle class	28,8	6,16
3.	Oriflame	Sweden	A wide range of products: from cosmetics to diet food	27,4	1,35
4.	Mary Kay	USA	Cosmetics	4,9	3,7
5.	Faberlic	Russia	Oxygen cosmetics from natural ingredients	4,8	there is no data
6.	Herbalife	USA	A variety of products for a balanced diet, weight management and beauty care	3,0	4,47

The table shows that the world leader in this industry, the company " Amway» in Russia ranks only third in terms of sales.

Corporations have the largest market share. Avon" and " Oriflame».

Is it possible to make money in MLM, what is needed to make money in network marketing

10. Is it easy to make money in network marketing, and what is needed for this 💰

Due to its merits, network marketing is a fairly popular activity.

According to the Direct Selling Association of Russia, following the results of the last five years 6% population was employed in business based on multi-level marketing.

Distributors have significantly different earnings, which do not depend on the level of education, profession, number of children, marital status and other factors.

A small percentage of sales agents quickly and easily achieve results. This is due to the fact that knowledge and experience are necessary for success.

To achieve significant results in business, you should follow the following tips:

A dream is the main factor that allows an entrepreneur to overcome difficulties and achieve success. To maintain motivation, you should “break the path to your dream” into intermediate goals.

The sales agent must realize that the result of his activity depends only on his efforts and dedication to the cause.

Tip 3. Learn and develop

Most network marketing companies have training programs. They include business literature, CDs of business leaders, and training seminars are periodically organized.

For effective activity, you should write a list of acquaintances in a notebook and periodically replenish it.

Tip 5 Present business and product

Based on the list, you should "get in touch" with potential partners or customers. The number of presentations affects the final result.

Tip 6 Consult with the sponsor line

Better to learn from other people's mistakes. Top line partners have more experience and are always ready to help the distributor, as they have a personal interest in the success of the entrepreneur.

Tip 7. Build a business based on the developed strategy

A stable, long-term result can only be achieved if there is a balanced development of the "width" and "depth" of the structure.

Tip 8 Repeat actions and methods of achieving success used by higher partners.

It is also worth noting that the downline partners are also watching the distributor, and will repeat his actions.

11. FAQ - answers to frequently asked questions

Before engaging in multi-level marketing, potential distributors have a number of doubts and questions.

Question number 1. Should a newbie start?

Worth it, but don't expect quick success. No risk of "being in the red", small initial investment, high-quality educational programs, help of partners - factors that can affect success.

Question number 2. How to make your first money in network marketing?

When starting cooperation with a "network" company, sales agents strive as quickly as possible. Activities should start with simple retail sales.

Buying goods at a wholesale price, and selling at a retail price - distributor makes money . First of all, products should be offered friends, relatives and acquaintances, as they will be more loyal to an inexperienced seller, and in the future they will be able to become regular customers or business partners.

Question number 3. Network Marketing: Is It Legal?

The direct selling business is a legitimate activity, which confirms the existence and development of these companies for decades.

Many illegal structures disguise their activities under the guise of network marketing companies.

Important! The potential client is invited to deposit an initial fee, pay for the mandatory training and purchase the minimum lot of goods. This is accompanied by the absence of checks and invoices confirming the purchase of products or the provision of services.

Also, the consumer should alert the poor quality of the goods or its absence.

Network companies offer products good quality and do not require significant financial investments to open their business.

Question number 4. What are the reviews of network marketing - is it possible to really make money on it?

There are many different opinions about network marketing on the Internet.

Here are some of them:

Review 1."At the beginning 2000s a colleague at work offered to try the company's products " Oriflame". I really liked the product, and I became a regular customer. A couple of months later, she invited me to become her business partners and told me how to make money.

At the first stage, I managed to have a fairly large income, but then everything changed. I am raising two children alone, and with the growth of my network (at that time I had 34 people in the team), it was becoming increasingly difficult for me to combine household chores and business.

As a result, incomes began to decrease, and at some point 12 people “left” my network. Later, I decided to switch to the classic business. In order to have great success in this direction, you need a lot of ambition, determination and activity. One girl from my structure has achieved great success in " Oriflame". I do not regret anything, the knowledge and experience gained at that time allow me to successfully do my job now.

Olga, Samara»

Review 2.“In our sophomore year at university, our stream was 'covered by the virus' of network marketing. Earning opportunities from Faberlic fellow students discussed everywhere. I have never been a fan of sales, but still decided to try.

Over time, I realized that it is hard to make money in this business, the bulk of the income from your turnover is received by superior partners. To be successful, you need to be able to impose products.

I don't recommend network marketing to anyone.

Alina, Rostov»

Review 3." AT 2009 I had to close own business, and in the end I owed the banks $40,000, of which 2 000 I had to pay every month. I urgently needed to get out of this situation. I was in search of a solution, I considered various options for earning money.

Suddenly, I was approached by an old friend, whom I had not seen for many years, with an offer to go into business in cooperation with the company " Amway". At the presentation, he told me about the possibility of a decent income in a year or two. But I was as quickly as possible, which was suggested to focus on personal sales of expensive products, which have a significant margin. So I started in the business selling water filters and dish sets.

I have enough wealthy acquaintances and, in order to get out of my situation, I had to actively promote products. In my first year in network marketing, I spent weekdays 2-3 meetings with clients, and on weekends - 6-7. The result was not long in coming - I paid off my debts and, without actively "attracting" partners, reached 9 – 12 % achievement levels.

Then I studied the company's marketing plan in more detail and began to develop my own network of distributors more actively. At the moment I'm at the level Platinum Independent Business Owner.

I agree that making money in this business is not easy, but if you have the motivation, then anything is possible.

Andrew, Peter»

Question number 5. How to distinguish network marketing (MLM business) from a financial pyramid?

Most conduct their illegal activities under the guise of direct selling companies.

The table shows comparative characteristics these organizations.

Comparison criteria	Network marketing	Financial pyramid
1. Initial investment	Typically a small initial investment. The distributor for this money receives "tools" for activities: catalogs, information about the company, product and a detailed presentation of the business plan. For many companies, with a certain amount of initial purchases, these materials are provided for free .	Significant upfront investment from 100 to 6,000 dollars. From this money, "bonuses" are paid to the higher "agents" of the pyramid.
2.Product	All activities are based on the sale of products. Product High Quality and is in high demand in the market.	The product is missing or of little value to consumers.
3.Priorities in the activities of the organization	Receiving profit from the sale of products and its fair distribution between distributors and the manufacturing company.	Attracting new participants and distributing the profits from their contributions between the higher "distributors" and the organizers of the pyramid. Emphasis in activities on quick earnings.
4. Paperwork	Making money in a legal way: accompanying the purchase with checks, invoices. Drawing up an agreement between the company and the sales agent.	Lack of documents or their improper execution.
5.Distributor motivation	The business plan is based on the promotion of the manufacturer's products on the market and the corresponding remuneration of sales agents.	The plan involves only attracting new "agents".

Question number 6. How to choose an MLM company to start?

For newcomers who consider the direct selling business as a suitable activity, there is a question of choosing an organization for cooperation.

For an optimal solution, a number of aspects should be taken into account:

• Reputation and age of the company. It is better to opt for an organization with a good reputation and significant experience in this field.
• Products. The basis of any trade is a product. Its quality will directly affect the result. It is also worth paying attention to the features of the product. It is important that it ends after some time, and customers contact the sales agent again. The diversity of the assortment is also an essential factor when choosing a company.
• Tutorial. The education system has a significant impact on business success.
• The presence of the company's business on the Internet. Being offline greatly reduces the opportunity for business growth.
• Business plan. It is important to evaluate the company's marketing and sales plan in terms of the fair distribution of the profits of the organization. You should also check for restrictions. The best kind of business plan is " multistage plan with branch».

Question number 7. I want to try my hand at network marketing at Oriflame, Faberlic, Amway - what do I need for this?

In order to become a distributor of direct selling companies, it is necessary to draw up a cooperation agreement with this organization, the age of the applicant must be at least 18 years old.

To register the contract, it is necessary that the newcomer has a sponsor who will help draw up the documents.

12. Conclusion + related video 🎥

In recent decades, various methods of promoting products have been rapidly developing in Russia, one of which is network marketing. Despite the controversial reputation, this method trade became convenient and popular among buyers.

Having a thorough knowledge of what is direct selling business , the consumer can make the best decision about its use - to access quality goods that are not available in retail stores, earn additional income or develop their own network business with the prospect of significant income.

In conclusion, we also offer you to watch an interesting video about business on the Internet:

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 of 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 expanded 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 of several levels.
• Pyramid. This type of marketing involves the following scheme of work: there are founders who find several 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, 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 to not only earn sales commissions in network marketing, but also 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