How network marketing works. How long does this business take? Remote networking at home

MLM business, or network marketing, began to conquer the Russian market back in the 90s of the last century, and still remains in trend, attracting new entrepreneurs to its ranks. Thanks to this form of sales, we distribute all kinds of additives, cosmetics, detergents, dishes, etc. According to the Direct Selling Association, 43.5% of the market is occupied by personal care products, 29%- products that promote healthy lifestyle life. 11.2%- clothing and accessories, 9.5%- household chemicals, 5% - household goods and others. But in spite of quite high demand for goods, and the growing turnover of companies engaged in network business, our attitude towards MLM is very ambiguous.

• What is attractive MLM business
• Why people do not like MLM: 3 reasons for distrust of business
• How to start a business from scratch in MLM
• How to choose the right company to work and start earning
• 3 tips to make money with network marketing
• Internet network marketing: the second wind of business?
• MLM business trends 2018
• How to develop a business mindset with MLM

On the one hand, hundreds of thousands of people come to the MLM business who want to earn money and build a career: at the end of 2017, 3.8 million people were engaged in network marketing. With another- Network Marketing is often avoided and often not seen as an opportunity to earn money, preferring a stable job with a stable monthly pay. The thing is that often people have no idea about the true face of network marketing. Let's try to figure out what MLM business is today, what positions it occupies in Russia, whether it has prospects and what awaits it in the future.

What is attractive MLM business

The name MLM comes from the English multilevel marketing, that is, multi-level sales, sales. Network marketing is a certain type of marketing of goods and services by independent distributors. Each of them can not only engage in sales, but also attract new partners, and they, in turn,- their own. Thanks to this approach, a “network” is formed, each member of which can receive interest both from their own sales and from the sales of people attracted by them. The bigger the distributor network- the higher his income.

Let's say you have a store that sells cosmetics.. You will be able to make a profit only when buyers come to you. opened - earnings will also depend on its attendance by customers. Network marketing will provide completely different opportunities. People themselves will order the necessary goods, buy them and distribute them among friends. It is for this reason that it is so attractive to companies that produce certain products. "Dinosaurs" of the market, such as Avon, Mary Kay, Oriflame, Amway do not have worthy competitors for the simple reason that their goods are often sold out almost immediately, even at prices that are many times higher than the "store" ones. Sales through stores are fraught with competition and unnecessary problems that can be solved through network marketing. The manufacturer does not need to spend money on advertising, rent of retail space and incur other expenses. But for networkers, a big plus is that companies not only earn money themselves, but also give everyone the opportunity to earn- those who love their products.

In network marketing you can:

- have a free work schedule;

- get by with minimal financial investment;

make a career;

- create passive income;

- transfer the contract by inheritance or sell.

But despite all the advantages, not everyone manages to achieve success in MLM.

Millions on MLM: how American multi-level marketing differs from Russian

American MLM marketing differs from Russian only in the attitude of representatives of two nationalities towards it. Americans most often think of network marketing as a side job or second job. They are ready to devote some time to it, but not all their lives. If things are going well, and there is not enough time to manage a multi-level company, a few leave their jobs and are engaged only in MLM business. Some people can actually become millionaires through MLM. But this is only the top of the pyramid, at the bottom of which are thousands of less successful entrepreneurs.

In Russia, newcomers often try to put all their efforts and resources into a new business and constantly run around familiar and unfamiliar people, offering goods and trying to sell it at any cost. To build their own network, many lack the skill or desire. Beginners basically see only a system of bonuses and bonuses in front of them, plus the opportunity to buy goods cheaply.

Network marketing today, like any other business, requires a reasonable approach and a clear plan of action. And one more thing: if abroad the times of lawsuits against network companies are a thing of the past, and business has become completely legal and profitable, then in Russia the opportunity to encounter fraud still exists.

What is network marketing, what are its pros and cons? Which MLM business companies are popular for 2018? How to make money in the network business the first money?

Hello, friends! This is Alexander Berezhnov, an entrepreneur and one of the authors of the HiterBober.ru website.

Today, the network marketing industry is gaining a new wave of popularity, and the development of the Internet plays a significant role in this.

However, this concept is still controversial in society. Someone calls network marketing almost the only opportunity to open your own business without investments, others are sure that this is all a pyramid scheme, a scam and a hoax.

Some time ago, I myself was involved in network marketing and I know firsthand what it is. In this article, I decided to dot the “and” and reveal this topic from all sides, including taking into account my experience in this industry.

After studying this article, you will firmly decide for yourself whether it is worth doing an MLM business, what are the pros and cons, and also find out which companies are better to start in and why.

So, let's begin!

1. What is network marketing (MLM) and what is its essence?

I'll start with a definition and then expand on it and give examples.

For example, the production cost of ORBIT chewing gum ranges from 20 to 50 kopecks per pack of 10 pads. However, while the gum is on the counter in the store, its value increases by several thousand percent! It's all the fault of intermediaries - large and small wholesalers who sell chewing gum to each other.

But everything does not end there, because, as you know: advertising is the engine of trade and intermediaries spend a lot of money on advertising.

Fact

In large companies, up to 50% of the final cost of the product is the cost of advertising and promotion of the product.

Thus, we buy Orbita packaging for 20-50 rubles. Yes, this cost, of course, includes the manufacturer's own margin, but intermediaries also want to eat. So it turns out that the end consumer suffers, who overpays at exorbitant prices.

About a hundred years ago, people thought about the problem of unreasonable markups of resellers and intermediaries.

Network marketing idea

Make the process of promoting goods (services) more convenient, cheaper and faster. Remove intermediaries and expensive media advertising from the promotion scheme.

This can be done if the people themselves tell each other about the product of the network company, and their motivation will be the percentage that they will receive from the sales of the products of the MLM company.

But you won't earn much just on interest. Therefore, multi-level marketing allows you to build your own business by creating a wide network of product consumers.

It is assumed that a person who has developed his network structure will receive a percentage of the entire turnover of his structure. That's how he can create himself tens of thousands of dollars a month.

Be sure to watch the video below to learn how you can create such an income in mlm. This is a cartoon about Pablo and Bruno - ordinary guys who have chosen different ways gaining financial freedom, and both wanted to become millionaires. Let's see what they got.

Network marketing was designed to solve the following tasks:

1. Reduce the cost of goods for the end consumer. This can be achieved by moving away from expensive standard advertising on radio, TV and the Internet.
2. Accelerate the process of delivering goods to the end consumer. Achieved through well-thought-out logistics (network of own warehouses in different cities and countries).
3. Avoid fake goods. In the process of resale of goods, it is possible to substitute it and falsify large quantities. MLM company works directly with the end consumer, so the likelihood of product falsification tends to zero.
4. Motivate company employees with money and business opportunities. In multi-level marketing, there is an opportunity to make good money and build your business from scratch.

2. How network marketing works

First, let me tell you about general principles work in this industry.

The manufacturing company has its own factories for the production of goods.

She sells these products without stores, products are distributed thanks to a built-in system of recommendations. In everyday language, this system is called "word of mouth".

A large number of people like this principle and they are happy to buy goods from the company.

Now all orders of an MLM company can be placed via the Internet, and paper catalogs that were popular some time ago with the development information technologies recede into the background.

The customer uses the products and can start building a business with a direct selling company. To do this, he needs to find several people who will constantly buy products and attract new business partners to develop the network. That is why this type of marketing is called network marketing.

Having its own warehouses and delivery services, the network company delivers products to the warehouse, and then these products are delivered to the offices that the company's partners (distributors) have personally opened for themselves. Sometimes the company delivers the order to the client directly to the house, which is very convenient.

Now I will talk about the features and principles of multi-level marketing for the manufacturer of goods (company), for the end consumer (client) and for the person who decided to open his own business (entrepreneur) using the capabilities of mlm.

From the point of view of an MLM company

A distinctive feature of the promotion of goods in a network way is to reduce the cost of advertising their products. The company cares more about promotional materials for its distribution partners (sometimes called independent entrepreneurs) and building a system of professional training (mentoring).

It is from the qualitative transfer of the MLM idea from person to person that the business of the enterprise ultimately depends.

From the consumer's point of view

It is convenient for the client to receive goods with a quality guarantee, he likes affordable prices, samples, catalogs. Often, direct selling companies have exclusive products and accessories that cannot be found in regular stores.

From the perspective of a distributor (entrepreneur)

People who want to start their own business without investment can succeed here. After all, the whole system has already been built, the market has been formed, most of the large companies are already on the lips of the population. In addition, a powerful system of training and mentoring in network marketing companies makes the opportunity to build your own business more than real.

3. MLM business industry - history and development trend

Network marketing originated in the West in the USA.

In 1945, American entrepreneurs Lee S. Mytinger and William S. Casselberry started their own business, becoming the national distributors of Nutrilite Products. The basis of their activities was the principle of recommendation (network) marketing.

Further, in the late 1950s, two companies were created in the USA: Shaklee and Amway. In Russia and the CIS countries, people are widely familiar with Amway products and the peculiarities of its business. The company itself was founded in 1959 by Rich DeVos and Jay Van Endel and was originally called the American Way Corporation.

The industry developed especially rapidly in the 1980s and 1990s. The range of products grew and by the mid-1990s, mlm-manufacturers offered their customers literally everything: from cosmetics and detergents to automotive products, household appliances, long-distance communication services and computers.

Today, the network marketing industry has undergone great changes and almost all mlm companies have gone online in one way or another.

In 1996, Russia established Direct Selling Association(rdsa.ru), which contributes to the development of the industry, its self-regulation and maintaining the reputation of the network business at a high level.

According to the Association for 2015-2016 in Russia, one way or another, multi-level sales are involved 6% of the total population(distributors), and these are millions of people, not counting consumers.

The Internet space has allowed the industry to develop at a rapid pace. And this is quite logical.

Example

You can now build your business in a network marketing company not only through face-to-face meetings at home or in a rented office, but also via the Internet, using the capabilities of Skype, email and social networks. Advanced entrepreneurs create their own websites.

This is exactly how “networkers”, as it is customary to call distributors of products of multi-level companies, are now actively processing the online space in order to expand the membership of their group (branch).

However, the development of digital technologies has also given rise to another side of this industry - the emergence of fraudulent companies and financial pyramids, which, under the guise of investment funds or just respectable mlm-firms, draw honest people into illegal and immoral schemes.

Later in the article, I will touch on the issue of fraud and tell you what not to do and how to distinguish a reliable network company from a scam.

4. Why do many people today associate network marketing with a pyramid?

In continuation of the previous paragraph, as promised, I will reveal the “pyramidal question”.

The association with pyramids, deceit and fraud in people arises rather out of inexperience.

I must say right away that there is the concept of "classic marketing" and "network marketing", although it is very conditional. For the sake of completeness, let me tell you how they differ.

1. Classic marketing

These are all the ways and means of promoting goods that we are used to seeing around - advertising on TV, radio, outdoor advertising, and so on.

Selling goods in stores is also standard way promotion. As a result, all this can be attributed to the concept of "classical marketing".

2. Network Marketing

This is just an unusual way for the bulk of people to distribute goods. It, as you know, is also called multi-level marketing.

In this concept of promotion, there are no retail stores familiar to many, there is no standard advertising in crowded places, and the goods themselves, as a rule, are of a higher quality in comparison with their familiar counterparts.

Unusual for many, the model of distribution of goods instills fear in those who have heard about various kinds of deceptions or have already fallen into financial pyramids.

Dear readers, remember!

Network marketing has nothing to do with pyramid schemes, fraud or illegal activities.

Associations with the pyramid arise because both in the pyramid and in mlm you need to attract people in order to earn.

Only in the first case, you get money for "heads", that is, your earnings depend from the number of people involved, who invested money in the pyramid, and in the second - the income depends on the turnover that the clients you attracted will make.

That is, if we are talking about normal multi-level marketing, you can sign at least 1000 people into your structure, but if they don’t buy anything, then your income will be zero.

In the pyramid, the opposite is true, where everyone attracted is obliged to make a contribution, usually quite significant (from 500 to 5000 dollars) and you are guaranteed to receive a percentage of his money, and your client will not receive a real product. He pays only for the opportunity to earn money by attracting new “victims”.

Below, in the answers to frequently asked questions, I have clearly outlined the criteria by which you can distinguish a good mlm company from a pyramid scheme.

5. Network marketing on the Internet without investment - myth or reality?

There is no myth here and cannot be. Building your network business over the Internet is new trend which is gaining momentum every day.

How to find a client in your mlm structure via the Internet - 5 proven ways to attract:

1. Social media. One of the most popular ways. You can create here a group (community) on the topic of earnings and self-development. The people who enter will be your potential customers. You can also “spam”, that is, send messages to everyone in a row, but then you risk getting your account blocked by the administration of the social network.
2. Thematic forums. In the forums about earnings and personal growth, you can also find future partners in your multi-level structure.
3. Contextual advertising. You can create a website and set up contextual advertising on it, thereby attracting targeted visitors. There is already an article on our site,. However, this method can be quite expensive for such a purpose.
4. SEO - promotion. By analogy with the previous method. You can make your own Internet resource and write articles on it containing keywords related to success, earnings and network marketing. Gradually, these articles will be promoted through the subscription form located on the site, and you will receive people loyal to your activities.
5. Lead generation. This method consists in creating a flow of contacts (applications) of potential customers whom you will attract with various advertising tools. You can learn more about what advertising is and what types of advertising exist from. You can process applications of potential customers (leads) and attract them to your multi-level marketing company.

You can use these and other ways to attract potential participants from the Internet to your network structure.

6. Pros and cons of network marketing - an overview of the main advantages and disadvantages

Network marketing, like any phenomenon, has a number of advantages and disadvantages.

That is why there are people who fiercely campaign for mlm, and there are those who are afraid of "network". For clarity, I have compiled a corresponding table that reflects almost all aspects of the SM:

Pros and cons of network marketing:

If you have not yet decided whether it is worth doing SM, then the criteria described in this table will help you once again understand whether it is for you or not.

7. Rating of grid companies in Russia - list of TOP-5 market leaders in 2017-2018

The most interesting thing is that the first two companies Avon and Oriflame occupy 31% and 30% respectively in this rating. This means that these companies are far ahead of our citizens in the MLM industry.

As you can see, Mary Kay and Faberlic have almost the same market share, while Amway is somewhere in between.

In any case, I am sure that you have heard if not about all of these companies, then most of them for sure.

I consider them reliable and I advise you to work with these companies if you decide to go into network business.

8. FAQ - answers to frequently asked questions

These questions are often asked to me, and here I cite them with answers as the most popular.

Question 1: Should a newbie start a network marketing business?

Yes, it is worth it, but only if you are ready to wait a long time for the result (from 6 months to 3 years) and have a cash reserve that will “feed” you in a cashless period. I also advise you to analyze your strengths and weaknesses, objectively assessing your capabilities.

But if you get tired of communicating with people and have a hard time enduring rejection, then you better not rush into this pool with your head.

Question 2. How to earn the first money in network marketing?

To do this, find 2-3 customers and simply sell them your company's products, after registering as a partner in it.

Then you will feel the "taste" of the first money. Perhaps it will be a very small amount: from 100 to 1000 rubles, but it will already be your money earned in direct sales.

If you want to get a more serious amount, then find 3-5 people who plan to build a business with you. Help them find 3-5 more people for each and in a few weeks your income will grow to several thousand rubles a month and will increase as your "branch" grows.

Question 3. What and how can you attract people to network marketing today?

Today, you can attract people to network marketing, as always, with the idea of ​​​​earning prospects, creating passive income and a free (flexible) work schedule.

The quality of products and the range of direct sales companies is constantly growing, so to say that we have high quality products is no longer so appropriate.

But if you show the convenience of working with the company's website and the possibility of doing business via the Internet, this will definitely impress your potential partners.

Question 4. How to distinguish network marketing from a pyramid scheme?

It's no secret that some scam companies tarnish the honor of decent MLM businesses and masquerade as them.

How to distinguish scammers? There are some characteristics dishonest companies:

Here they are:

1. Unreasonably high entry fee. As a rule, it is from 100 to 5000 dollars. It is from this money that the remuneration to the “distributor” is paid.
2. The product, as such, either does not exist at all, or has no market value outside of this organization.
3. There is no documentary confirmation of the fact of receiving money and other relevant documents (invoice, contract, checks, etc.);
4. You are told that you will receive money from number of attracted participants rather than from the turnover structure.
5. The focus of the organization is on quick money , and the product (if it exists) is needed only as a cover for the activity of the pyramid.

If you notice at least one of them in the company where you are invited, you should thoroughly study it for fraud and the legality of doing business.

Alexander Kaptsov

Reading time: 11 minutes

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The first network companies entered the Russian market in 1993. At that time there were no more than a dozen of them. Over time, the business expanded by attracting new people, and today the list of network companies includes about 500 organizations. For many people, network marketing has become the main form of income. Some are attracted here by a free work schedule, others by regular communication with people, others are happy with the opportunity for rapid career growth, and, of course, with monetary rewards. Currently, over 5 million distributors operate throughout Russia, with a fairly extensive network of 20 million customers.

7 main criteria by which network companies are evaluated

Deciding where to go in network marketing is not an easy task.

Therefore, first of all, you should pay attention to the main parameters by which network companies are usually evaluated.

1. Suggested Product. It should be safe for human health and affordable. Its application must produce results.
2. Company age. It is best to conclude an agreement with an organization that has been on the market for at least 5-6 years. Firstly, no one will last that long, and secondly, as statistics show, approximately 80% of network companies cease their activities even before the expiration of the first 5 years.
3. Marketing plan. It is desirable to compare it with the plans of other companies, paying special attention to compensation payments through the network.
4. Distributor training. It should be free, accessible and professional.
5. Company fame. To build an international business, a company must have a structure in at least 3 countries.
6. Legality of the company. The presence of a legal status in the country where the distributor is going to work, and the official website on the Internet indicate that it is possible to cooperate with the company.
7. Strong leadership team. The success of the entire team largely depends on the personal qualities and capabilities of leaders.

Independent rating of grid companies in terms of sales in 2015

Brief introduction to networks

This international corporation headquartered in Michigan (USA) has been successfully operating in the sales market for over 55 years. Amway branches are located in 80 countries of the world, including Russia (since March 2005).

Consumers are offered over 450 items of high quality health products.

What are the characteristics of the company?

• By purchasing products at Amway at wholesale prices, the distributor retails it at a 30% markup. These percentages form his income.
• For large volumes The participant receives an additional reward for personal purchases.
• Inviting to the team new distributors or consumers of products, the distributor receives a reward in the form of a reduction in interest on the cost of goods.

Having achieved significant success in sales, a person can live on the interest transferred by Amway to his personal account.

Avon has over 120 years of history. More than 5 million distributors cooperate with it in more than 100 countries of the world. In Russia, the first representative office of the company appeared in 1995.

Avon products are more focused on the female audience, offering lovely ladies perfumes, cosmetics, jewelry and various accessories.

Distinctive features of the company

• Cooperation as a VIP client. Free registration and the opportunity to purchase products with a 30% discount. At the first order and further the participant receives gifts.
• Cooperation as a Coordinator. When attracting new representatives, the coordinator, in addition to the already existing discount of 30%, also receives 12% of the income from the sales of his group. There are bonuses and incentive programs for coordinators.

Despite the fact that the company is only 35 years old, its products are widely distributed in 92 countries around the world. The products are aimed at people who want to lose weight and cleanse the body. Offers Herbalife and natural cosmetics.

• To work as a distributor You must purchase the International Distributor Kit.
• When selling goods at retail purchased at the wholesale price, the distributor earns a 25% return.
• A supervisor is standing over the distributor. His commission and monthly remuneration for services is 5%. In addition, its retail income is 50%, and wholesale - up to 25%.

Mary Kay

Mary Kay has been in existence for almost 50 years, and all this time it has been very popular among women. The principle of its consultants “Try before you buy” is still relevant today. It is one of the best-selling brands for facial skin care and makeup applications.

Branches of the company exist in 36 countries of the world, on 5 continents. In 1993, the first Mary Kay products went on sale in Russia.

Features of working in the company

• For work The company invites women at least 18 years old.
• To become a Consultant for beauty, you need to purchase a Consultant Starter Kit. Consultants receive income from the sale of products during their presentation at master classes, when re-ordering goods and attracting new employees to work in a team.
• You can become a direct client to purchase products with a significant discount - up to 40%, receive gifts and a monthly magazine, participate in contests and receive free professional training in makeup techniques and business basics.

132 years have passed since the founding of the German company Vorwerk. Its activity began with the production of carpets and weaving equipment. Today the company offers kitchen and floor care equipment sold in 58 countries around the world. Vorwerk products appeared on the Russian market in 2005.

What is special about the company?

• For beginners Those wishing to participate in the work of the company are invited free education, including the theoretical part and basic trainings. Refresher courses are being held.
• Consultant he plans his own working time, receiving a certain percentage of sales.

To organize network business online need to work online at home. What is the best business to open online for optimal earnings online with minimum investment? Naturally, the best entry into online business is, oddly enough, network companies and network marketing. Network marketing companies in Russia appear regularly and disappear rapidly. In order not to fall for scammers on the network, and, in particular, scammers in network marketing, it is necessary to choose a network company with experience and a reasonable business plan. Of course, it's easier to send all the "obsessive" and work for someone stupidly performing mechanical actions. But you can turn on your mind, choose the best network company with an affordable franchise, and provide yourself and your children and parents with a decent life. just working from home online.
What you need to know for remote work on a network at home, if you intend to work on the Internet and looking for a ready-made business with minimal investment?

“There are many network companies, but you have only one life” - the words of a great woman, Tamila Polezhaeva.

When choosing a network marketing industry, it is very important to choose a network company with the most convenient marketing plan for you. It is important that the company's capabilities match your needs. Now I will briefly describe the pros and cons of the most famous network companies - competitors and starting a business in them. Where you can open a business in Russia - the most affordable franchise and telecommuting networking at home.
So, there are many companies on the market (cosmetic, travel, legal). I want to say right away that the ancestor of network marketing was Mary Kay (Mary Kay), which began its existence in the 19th century! But, this company is engaged in offline promotion (meetings, master classes), entering the company is quite difficult - you need to purchase a starter kit of expensive cosmetics for a good amount.
Active promotion on the Internet is carried out by Avon, Faberlic, Oriflame, NL and Amway. Consider these network marketing companies in Russia.

What business to open

Avon

To register with this company as a coordinator (that is, to get the opportunity to invite people and build your own business), you need to send paper copies of documents to the company, which delays the registration process for a long time. Of the benefits - a small purchase amount - only 1600 rubles, cosmetics are inexpensive. The company promises a good bonus is 125,000 rubles, but it is paid only if the coordinator recruits 5 active consultants to the first line of each catalog, and this continues throughout the year. bonus... The company promises a discount from the catalog price.If the consultant buys cosmetics only for himself, his discount is 15%, if he fulfills the plan (each catalog of 5 actives for 1600 rubles) - the discount reaches 32%.It is easy to guess that if the coordinator does not fulfill the plan on recruits, then he finishes the order for inactive consultants. I want to get big discounts…. The company thus does not encourage the construction of structures in depth. When recruiting, the coordinator is happy to announce that in order to receive income, it is not necessary to start an individual entrepreneur, the money is dripped onto the consultant's card. At the same time, it is forgotten to clarify that for such a procedure the company retains 20% of the consultant's profit at the first stages, and then the retention increases to 40%. The company does not have large-scale events and conferences that the Internet would thunder about. There is also no way to get passive income. The plan for recruiting to the first line is endless. In case of non-compliance with the plan, Avon may terminate the contract with the consultant, transferring its structure to another coordinator. No international sponsorship provided.

Faberlic

This company has been on the market for only 20 years. This is a Russian company, which the consultants are very proud of. The marketing plan and the picture of the career ladder are painfully reminiscent of the Oriflame marketing plan. But the devil is in the details. The Company pays bonuses when a consultant achieves certain Directorial ranks. Prizes in rubles - for closing the title of Director, paid 55 thousand rubles. Mandatory turnover - 50 points. At the same time, 1 point costs 80 rubles. In total, the mandatory purchase for payroll is 4000 rubles. Director's turnover is more than 400,000 rubles. The company DOES have a plan to recruit first line priority. There must be a gap at any Director level. If a consultant has 2 grown directors in the first line, then in order to receive income from these structures, it is necessary that there is an additional growing group with a turnover of 1000 points (80,000 rubles). There is a gap at any level. If the SUPER-Director does not have a personal group, then in this directory, he will not receive a salary. I.e the company did not provide for its consultants the possibility of passive income. Also, if the recruitment plan is not fulfilled, the company reserves the right to unilaterally terminate the contract with the consultant. Travel abroad is not included. Entrance to the company is free and without a passport.

NL

Russian company - IP registered in Russia. The company's product Energy Diet- Pretty expensive food cans. I am not satisfied with the recruiting method in this company - newcomers are taught to recruit existing consultants from other network companies, in particular Oriflame. I also alerted the turnover necessary for accruing income - 21,000 rubles per period. A very narrow focus of products and a high price per unit of goods make it quite problematic to develop a business.

Amway

This network company is mainly engaged in household chemicals, washing powders. Of the minuses - there is an entrance fee that must be paid for the right to work in the company. The product is quite expensive and does not run out for a long time. There is mandatory turnover - 200 points, for this moment this amount is more than 10,000 rubles. Since the goods are consumed for a long time, to ensure a minimum personal turnover, you need to constantly find new buyers. Also, the presentation of the goods takes place offline (i.e. wash clothes and remove stains at the client's home;). On the Internet, Amway business is not common, you can mainly see selling pages. Quality products, but for business I would not choose Amway

Oriflame

This network company 50 years on the market, 20 years on the Russian market. Survived 3 crises and always only increased its turnover. Assortment - 1800 items for every taste and budget. In addition to decorative cosmetics, skin care products, there is an excellent Wellness series - health products.
To calculate salaries (volume discounts), the consultant must learn how to make a turnover equal to 150 points (about 6000 rubles). The consultant's initial discount is 20% off the catalog price. When a consultant makes 150 points for his number, the system automatically calculates and shows the income from his structure, and in the next catalog 12% of the consultant's personal order is returned to the account. Thus, a partner who came to build a business makes 150 points and the total discount is 32%. The company has own production– 5 factories and 1 skin research institute, constantly publishes scientific publications, has its own patented formulas. The company has milestones - titles, upon reaching which the company pays dollar premiums. For the title of Director - you will receive $1000, for the title of Golden Director - $2000. At the moment, bonuses of up to $1 million are envisaged. The director's turnover is 250,000 rubles. The company does not have a plan for recruiting in the first line. A consultant may not recruit at all, but buy personally for himself and have the maximum discount. In the projects of the company, building structures in depth is welcomed, which gives a chance to all team members to grow quickly. When a consultant reaches the title of "Golden Director" (that is, 2 director teams have grown under you) - income becomes passive, and you can not recruit at all, but make a personal turnover and receive your 5% of the team's turnover. Basically, everyone goes further and continues to build structures, because "appetite comes with eating", plus the company arranges motivating trips abroad (conferences) from certain levels. Once a year, the company holds a conference for managers and directors - even newcomers can go if they fulfill the conditions for their growth. The second conference is for Gold Directors and above, the third is for Diamond Directors and above, and the fourth is for the Top Leadership of the company. Banquet Director takes place in Moscow every year- the largest corporate party in the country, which attracts all the directors with their companions. Stars of network marketing, show business stars perform at the Banquet. From the "Director" level, an Autobonus is available - a monthly payment from 3,000 to 9,000 rubles. to buy a car. Income is accrued to the consultant to his personal number and is paid in full when the consultant opens an IP (calculations under the simplified taxation system). Upon reaching the level of "Director" Registration costs 149 rubles (if the consultant collects an order for 100 points within 21 days from the date of registration, this money is returned to his account and can be used as a discount on the next purchase. For registration, you need a series and passport number. You can work in 62 countries of the world. International sponsorship is provided, that is, you can have a team in Russia, Ukraine, Poland, etc. Oriflame is the only best network company in Russia where you can pass on your ready-made business by inheritance - this is an ideal network job when choosing which business to open to work from home. The best choice to start an online business. They really have something to be proud of. And now is a good time to

Having studied the company's website, I see only the hotline number, a list service centers and email. In fact, there is not enough information for a serious decision in favor of long-term cooperation.

Where is the information about turnover, production, form of activity, assortment? Well, okay, the company was founded in 2007 in Barnaul.

To get a marketing plan, I had to register on the company's website. It turns out that the company is developing in 32 countries of the world. You can see the photo CEO. On the site for checking counterparties, it turned out that 4 companies were registered for the general director, which are LLCs with authorized capital in 20,000 rubles and total revenue for 2016 in the amount of 383 million rubles. Oriflame, only in Russia, for the same year, had a revenue of 15 billion 940 million rubles.

Not a single fact that tianDe has at least one plant, research center or factory, institute. All production is in China with ISO certification. That is, the products are clearly with an extra charge - everyone needs a profit.

It says at the top - the 35% discount does not apply to the first 20 bb. We drive in an order for 20 bb (1277 rubles) - the discount is not issued, we drive in an order for 130 bb (5900 rubles) - the amount for free delivery - the discount is 29.6%. If the order is reduced to 50bb, then the discount will decrease to 21.3%. Where is 35% on products?

Delivery - only from self-delivery points, which are only in 15 cities. Not enough, compared with the thousands of free software that Ori has, even in the most remote corners of our country ... If your city is not on the list of Tiande pickup points, you will have to pick up the goods at the post office, paying an additional 500 rubles, and you will have to wait from 4 to 15 days for the delivery of the goods .

Now about the marketing plan.

First, the cost of a point for a consultant and the cost of a point payable are different. And the difference is quite large - about 50%. They pay, as in NL, only from half of the sales.

A high margin per product kills the idea of ​​network marketing, which is supposed to ensure the availability of a quality product.

Secondly, the "unique non-separable marketing plan" of the company is unique by the total pool of all volumes. All their MP is Ori's marketing plan to the level of Director in Ori, for example. And then imagine that at the Senior Director level the discount would be 23%, at the Gold Director level it would be 24%, and so on up to the Diamond President.

But if you do not have an inter-percentage difference with your leader, you will not be paid anything from your group, only a bonus from 5 generations. And if this branch accounts for 75% of the volume of your structure, then you will not receive this bonus either. It is NOT PROFITABLE to raise leaders in this company.

The marketing plan is final, that is, if you have collected all the qualifications, you will have to come up with new ones until you get to 100%, but this is no longer possible, that's all the uniqueness.

Thirdly, the company has only five levels of bonuses, everything else is cut off, and you must constantly work on breaking away from your branches. passive income this company does not.

Fourthly, the Auto program ends in 2018, the only brand you can count on is Volkswagen. A car is leased under specific conditions (an increase of 10,000 - 40,000 points per year). The car program in the company is given under rather harsh conditions, a large number of points, I think. But for me, the most important thing in the network is the ability to build passive income. The rest - then ...

As for travel, they didn’t get into the wilds either - the company has just begun to develop this direction. One thing pleases - of all the companies listed here - representatives of Tiande have never tried to lure our girls and boys to them - this speaks of clean working methods.

I hope that they will remake their unique marketing plan, because the network business is a business of mutual assistance, where it is profitable to grow and train leaders.

Grid companies of Russia

Despite the colossal incomes gained from the network business, in Russia only 7 percent of residents are included in it, who are mainly engaged in open sales, that is, they form the turnover of network companies. Nevertheless, significant dynamics are visible. Every year, new network companies appear in Russia, which are untwisted much more rapidly than companies performing traditional sales. Undoubtedly, in terms of mass, such states as India, China, Brazil, and Japan are mainly leading in this business. In Russia, there is still a lot of free space on the network.
A very delicate moment in the network business is the absence of any legislative base in our country, while in America and Japan, for example, there is a whole section in the laws on network marketing. Such conditions lead only to fertile ground for fraudulent activities, which, unfortunately, occur to this day. It's good that we have at least a special association that somehow checks the network companies in Russia, raising the intended trust in these companies and network marketing in general. In the database provided by the association, there are only 16 organizations that can deserve some trust. When newly minted companies in the fashion chain business emerge, one cannot be one hundred percent sure that they will be able to survive among a significant number of rivals. In any case, one of them will go bankrupt, and there is nothing terrible or shameful in this, because this is a business - nothing personal ...

Remote networking at home

Those people who decide to work in the company must understand that, perhaps, they will have to invest personal funds, undoubtedly there will be a lot of contact with people, research products and of course mentally prepare to the fact that customers will be all the most diverse, and it is strictly forbidden to perceive any disagreement on your own subjective account. Many people have reached significant heights in this difficult networking business - as an example, you can look at similar Russian network companies like Avon, Oriflame, Mary Kay, Amway and Faberlic. Among their top leaders are diamond directors with cars and apartments, and a huge team of successful distributors around the world.
Often, Russian network companies provide their employees with unlimited freedom of action, the potential for themselves, carve out days off and earn as much as they want. Such a positive fact has its own specific nuances, since, on the one hand, it looks like everything is wonderful, and you definitely your own boss, and on the other hand, at the initial stage there is no stability, today you can make good money, and nothing tomorrow, but this is only a matter of time. Undoubtedly, if there is a goal and desire, and essential knowledge of one's products or services, then everything will definitely work out. Successful network companies in Russia have certain established and well-established tactics of professional online business organization, capable of line up stable business to ensure profitability equity . Newcomers need to tune in to a leisurely, but promising outcome, since you won’t earn significant money right away, especially in large companies where there is competition that has captured about 70-80% of the entire sales market. Only with gaining experience and understanding all the subtleties and nuances of the network business, it is possible to come to a decent and stable income.

Interested in raising living standards, join the team!

Question for those who are already registered in any network company:

If everything is fine with you, why are you looking in the search for "Network Marketing Companies in Russia"? If you went to this page, it turns out that you are dissatisfied with your company and are looking for something else?
Or you came to leave here your coordinates in order to lure people from other companies to you. Such behavior is unambiguously incorrect and discredits your entire company. Such comments are removed.

I express my deep gratitude to the blog of E. Penkin in the formation of the addition of part of the article. I completely agree with Evgeny - there should be no competition and enticement within network marketing. Competition should be between traditional and network business. Leave all the "tomatoes" in your pockets and go to work in your companies with clean methods.

o.z. Company director.
Hobbies: photography, design, web design, vector psychology and esotericism.
Marital status: beloved wife and mother)
Life Motto: It's never too late to step out of the crowd. Follow your dream and move towards your goal!

Updated: February 17, 2018 by:

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, excellent result can be achieved 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 bioadditives: 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 on condition 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: new round asked the American Way Corporation (abbreviation Amway), created in 1959 by former Nature's employees Jay Van Andel and Rich de Vos.

What is the merit of these people in the development of the MLM business? They began to sell not one product, but several. The list of products offered to consumers has been expanded food additives, chemistry for household 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

Principle of operation Russian companies MLM 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? It is one of the most popular and effective ways legal promotion of services and goods. 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 costs when entering;
• 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. Detailed list network companies successfully operating in Russia are listed 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. A distributor of an MLM company 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 the globe;
• 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, there are a few things you need to follow. 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;
• high level 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