Rating of network marketing companies in Russia. Network marketing - what is it, the pros and cons of working in MLM companies

To organize an online business online, you need to work on the Internet from home. What business is best to open online for optimal earnings online with minimal 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. To avoid falling for scammers on the Internet, 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” ones 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, your children, and your parents with a decent life just working from home on the Internet.
What do you need to know to work remotely on the network at home if you intend to work on the Internet and looking for ready business with minimal investment?

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

When choosing the 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 meet your needs. Now I will briefly describe the pros and cons of the most famous network companies - competitors and starting a business with them. Where you can open a business in Russia - the most affordable franchise and remote work online from home.
So, there are many companies on the market (cosmetics, tourism, legal). I want to say right away that the founder of network marketing was the Mary Kay company, which began its existence back 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 starter kit expensive cosmetics for a good amount.
Avon, Faberlic, Oriflame, NL and Amway are actively promoting on the Internet. Let's take a look at 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 business, you need to send paper copies of documents to the company, which delays the registration process for a long time. The pluses are a small purchase amount - only 1,600 rubles, cosmetics are inexpensive. The company promises a good bonus - 125,000 rubles. But it is paid only if the coordinator recruits 5 active consultants to the first line of each directory, and this continues throughout the year. At the same time, there is a certain plan for group turnover, if not fulfilled, the coordinator is dequalified bonus... The company promises a discount on the catalog price. If a consultant buys cosmetics only for himself, his discount is 15%, if he fulfills the plan (each catalog has 5 active members for 1600 rubles) - the discount reaches 32%. It is easy to guess that if the coordinator does not fulfill the plan for recruits, then he finishes the order for inactive consultants. I want to get bonuses and very big discounts... The company thereby does not encourage the construction of structures in depth. When recruiting, the coordinator is happy to inform you that in order to receive income, you do not have to create an individual entrepreneur; the money drips 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 in the first stages, and then the retention increases to 40%. The company does not have large-scale events and conferences that would make the internet buzz about them. There is also no way to generate passive income. The plan for recruiting to the first line is endless. If the plan is not followed, Avon may terminate the contract with the consultant, transferring its structure to another coordinator. International sponsorship is not available.

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 marketing plan of the Oriflame company. But the devil is in the details. The company pays bonuses when a consultant achieves certain Director ranks. Bonuses in rubles - for achieving the title of Director, 55 thousand rubles are paid. Mandatory turnover – 50 points. In this case, 1 point costs 80 rubles. In total, the mandatory purchase for payroll is 4,000 rubles. The director's turnover is more than 400,000 rubles. The company EXISTS a plan for recruiting priority in the first line. At any Director level there must be a gap. If a consultant has 2 grown directors in the first line, then in order to receive income from these structures, it is necessary to have an additional growing group with a turnover of 1000 points (80,000 rubles). At any level there is a break. If the SUPER-Director does not have a personal group, then in this directory he will not receive a salary. That is the company did not provide the opportunity for passive income for its consultants. Also, if the recruitment plan is not fulfilled, the company reserved 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. Company product - Energy Diet– quite expensive cans of food. I am not happy with the recruiting method in this company - newcomers are taught to recruit existing consultants of other network companies, in particular Oriflame. I was also alarmed by the turnover required to accrue income - 21,000 rubles per period. The very narrow focus of products and the high price per unit of goods make business development quite problematic.

Amway

This network company deals mainly with household chemicals and washing powders. The downside is that there is an entrance fee that you have to pay for the right to work in the company. The product is quite expensive and does not last long. Eat mandatory trade turnover - 200 points, for this moment this amount is more than 10,000 rubles. Since the goods take a long time to be consumed, to ensure a minimum personal turnover, you need to constantly find new buyers. Product presentation also takes place offline (i.e. You need to wash clothes and remove stains at the client’s home;). The Amway business is not widespread on the Internet; you can mostly see selling pages. The products are high quality, but I wouldn’t choose Amway for business

Oriflame

This network company is 50 years on the market, 20 years on the Russian market. Survived 3 crises and always increased its momentum. Assortment – ​​1800 items for every taste and budget. In addition to decorative cosmetics and skin care products, there is an excellent Wellness series - products for health.
To calculate salaries (volume discounts), the consultant must learn how to make a turnover equal to 150 points (about 6,000 rubles). The consultant's initial discount is 20% of the catalog price. When a consultant makes 150 points to 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 his total discount is 32%. The company has own production – 5 factories and 1 leather research institute, constantly publishes scientific publications, has its own patented formulas. The company has milestones - titles, upon reaching which the company pays dollar bonuses. For the title Director - you will receive $1000, for the title Golden Director - $2000. At the moment, bonuses of up to $1 million are provided. Director's turnover is 250,000 rubles. The company does not have a first-line recruitment plan. The consultant may not recruit at all, but buy for himself personally and have a maximum discount. In the company's projects, building structures in depth is encouraged, which gives all team members a chance to grow quickly. When a consultant achieves 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 do personal turnover and receive your 5% of the team’s turnover. Basically, everyone moves on and continues to build up 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 attend if they meet 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 Team of the company. The Director's Banquet is held annually in Moscow- the largest corporate event in the country, which brings together all the directors and their companions. Network marketing stars and 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 individual entrepreneur (calculations according to the simplified taxation system). Upon reaching the “Director” level, 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. To register, you need a series and passport number. You can work in 62 countries around 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 open a business online. They really have something to be proud of. And now good time to

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

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

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

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

It says at the top - the first 20 bb are not eligible for the 35% discount. We enter an order for 20 bb (1277 rubles) - no discount is issued, we enter 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 the 35% on products?

Delivery is only from pick-up points, which are only in 15 cities. Not enough, compared with the thousands of open source 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 delivery of the goods .

Now about the marketing plan.

Firstly, the cost of a point for a consultant and the cost of a point to be paid are different. And the difference is quite big – about 50%. They pay, as in NL, only on half of the sales volume.

High margins on a product kill the idea of ​​network marketing, which should ensure the availability of a quality product.

Secondly, the company’s “unique non-separating marketing plan” is unique due to the total pooling of all volumes. Their entire MP is Ori’s marketing plan up 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 - 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 develop leaders in this company.

The marketing plan is finite, 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 uniqueness.

Thirdly, the company has only five levels of bonuses, everything else is cut off, and you constantly have to work on breaking away from your branches. There is no passive income in this company.

Fourthly, the Auto Program ends in 2018, the only brand you can count on is Volkswagen. The car is leased under specific conditions (increase 10,000 – 40,000 points per year). The company's auto program 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 opportunity to build passive income. The rest will come later...

They didn’t go into the wilds about travel either - the company has just begun to develop this area. One thing is good - of all the companies listed here, representatives of Tiande have never tried to entice our girls and boys to join them - this speaks of clean working methods.

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

Network companies of Russia

Despite the colossal income gained from the network business, in Russia only 7 percent of the population is 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 growing much faster than companies performing traditional sales. Undoubtedly, in terms of mass production, the leaders in this business are mainly countries such as India, China, Brazil, and Japan. In Russia there is still a lot of free space on the Internet.
A very delicate point in the network business is the absence of any legislative framework in our country, while in America and Japan, for example, there is a whole section in the laws on network marketing. Such conditions only lead to fertile ground for fraudulent actions, which, unfortunately, still occur today. It’s good that we have at least a special association that somehow checks 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 may deserve some trust. When freshly minted companies emerge in the fashion network business, you cannot be one hundred percent sure that they will be able to survive among a significant number of competitors. 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 work on the network at home

Those people who decide to work in a company must understand that they may have to invest personal funds, there will undoubtedly be a lot of contact with people, researching products and, of course, prepare psychologically to the fact that clients will be all very diverse, and it is strictly forbidden to perceive any disagreement at your own subjective expense. Many people have achieved significant heights in this difficult network business - as an example, you can look at similar Russian network companies such as 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, network companies in Russia provide their employees with unlimited freedom of action, the potential to carve out days off and earn as much as they want. Such a positive fact has its own certain 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, but tomorrow nothing, but this is only a matter of time. Undoubtedly, if there is a goal and desire, and the essential thing is knowledge of your product or service, then everything will definitely work out. Successful network companies in Russia have certain established and established tactics for professional online business organization that can line up stable business to ensure return on 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 by gaining experience and understanding all the subtleties and nuances of a network business is it possible to achieve a decent and stable income.

If you are interested in improving your standard of living, join the team!

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

If everything is fine with you, why are you searching for “Network marketing companies in Russia”? If you came to this page, it turns out that you are unhappy with your company and are looking for something else?
Or you came to leave your coordinates here in order to lure people from other companies to you. This behavior is definitely incorrect and discredits your entire company. Such comments are deleted.

I express my deep gratitude to E. Penkin’s blog for shaping and completing part of the article. I completely agree with Evgeniy - there should be no competition or poaching within network marketing. There should be competition between traditional and online businesses. Leave all the “tomatoes” in your pockets and go work for your companies using clean methods.

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

Updated: February 17, 2018 by:

Alexander Ivanov

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

It was founded in 1963 and, as hard as it may be 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 an honorable 6th place among international companies for direct sales. And this is worth a lot, given the scale of the statistics.

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

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

Place 6. Oriflame

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

Back then, catalogs offered only one series of products, while today the range includes over 1000 names of perfumes and cosmetic products. The turnover is 2 billion dollars a year, and there are more than 3 million pure distributors.

A distinctive feature of the company is its position as an environmentally friendly manufacturer.

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

To demonstrate its strong position, the company even produces catalogs using materials from artificially grown plantation forests.

Place 7. FABERLIC

Well, finally, the last favorite in my rating is ours Russian company. Its founders were our compatriots, entrepreneurs Alexey Nechaev and Alexander Davankovy.

At first the company was called “Russian Line”, but in 2001, apparently deciding that this was not solid enough, it was registered as Faberlic.

To date, the brand has grown to 20 countries, including Germany, Poland, Hungary and Romania. Faberlic considers its unique feature to be developments based on perfluorocarbons, that is, a collection of oxygen cosmetics for facial skin care.

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

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

Among these I include the Switips CashBack service, the advantages of which I wrote about here in Telegraph.

I was glad to provide relevant 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 Automation of cold contacts, which will help you create a System for attracting partners to your team on full autopilot online.

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

ButV30's years XX century The product distribution system was born in the USA and subsequently developed. manufacturer – distributor — buyer».

At the same time, the activities of MLM companies for many years have been surrounded by various rumors, comparisons with financial pyramids and ambiguous public opinion. Based on this, for an objective look at this type business, you should consider in more detail all aspects and nuances network mlm marketing.

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;
• Which MLM business network companies are the most popular (ranking by sales volume in the world).

After reading this article, you will decide for yourself whether it is worth engaging in network multi-level marketing, find out which companies are better to choose and why, and read reviews from “experienced” mlm marketers.

What is network marketing and how does it work, what is the basis for 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 selling goods and services from manufacturer to buyer, which is carried out through recommendations from person to person.

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

In addition to earnings from retail sales the sales agent offers consumers, for a percentage of sales established by the company, find new buyers , which “attract” new clients under similar conditions. As a result, a multi-level network is formed.

Network Marketing Objectives

• Product pricing optimization. Before 70% The retail price of everyday goods consists of the costs of the distribution network and advertising. Changing the distribution structure allows you to reduce costs.
• Providing customers with high-quality, authentic products. With traditional product promotion, there are obvious prerequisites for the appearance of counterfeits on the market, but in the direct sales method they are absent: the product is not as widely known as analogues from the traditional market, the manufacturer, distributor and buyer are not interested in the appearance of counterfeit products.
• Improving 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 appropriate quality and in optimal time (read the article at the link).
• 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.

Below we will consider the principle of network marketing.

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

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

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

2.1. Network marketing from an MLM company

The MLM company produces products at its own factories. It also develops a marketing and sales plan, based on which revenue from product sales is distributed.

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

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

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

For proper efficiency, entrepreneurs receive everything necessary materials on products, master classes and seminars are held aimed at developing a variety of skills.

2.2. Network marketing from the consumer side

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

• Delivery. Entrepreneurs, as a rule, deliver goods to their homes.
• Service. Before purchasing, the buyer receives all necessary information about the product. Also during operation it is possible to consult with the distributor.
• Quality guarantees. Most MLM companies guarantee the quality of their products, with the possibility of a money back full size if the client is dissatisfied.

2.3. Network Marketing from the Entrepreneur's Side

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

An entrepreneur has the opportunity to independently plan his employment based on his capabilities. Students, housewives and retirees are most involved in this type of business.

Some terms and definitions used in the network marketing business:

Distributor - a sales agent who has an agreement with a direct sales company and receives a remuneration for product sales, 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’s activities, which includes a 1st level partner, his sponsor, etc.

Side Entrepreneurs – a set of distributors that do not belong to either the sales agent’s subnetwork or the sponsorship 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 lower lines in the distributor’s subnet.

Active income – monetary reward for 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 prerequisite is the presence of assets, which can be real estate, bank deposits, shares, etc.

8. Advantages and disadvantages of network marketing - an overview of the main disadvantages and advantages of the 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 barrier to entry into the market. When opening any business, an entrepreneur evaluates the resources he needs to start in the market. In a direct sales business, you need little money to start your own business. There are also no costs for renting premises, warehouses and other fixed costs.
2. Possibility of doing business on the Internet. Since the end of the twentieth 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 undeniable advantage of business.
3. Product quality. Thanks to the peculiarities of MLM marketing plans, companies have the opportunity to allocate large sums for the production of quality products compared to competitors who use traditional marketing to promote goods.
4. Training programs. To develop the skills of sales agents, direct sales companies introduce training programs that include books, CDs, seminars and a variety of trainings 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. The opportunity to work in your free time and at the same time have income from your main activity.
6. affiliate program. The sponsorship (affiliate) 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 you read the article “”, perhaps you will find useful information there.

Disadvantages and disadvantages of network marketing

Let us now consider the main disadvantages:

1. Reputation. Due to the lack of restrictions and 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 deterioration in relationships with friends and family. The majority of the population prefers to work for hire. If you run a business without an office, warehouse or employees, friends and relatives have a negative attitude towards this business.
3. Slow or no business growth. As a rule, an entrepreneur receives the first significant results within a period of 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. With active participation in building a business 80 — 95% of the work does not bring results.
5. Only a few entrepreneurs achieve significant success. On the path to success, a sales agent encounters many difficulties, which require perseverance, education and self-improvement to overcome. Not everyone is ready to overcome all possible obstacles.

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

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

The first mentions of network marketing in Russia are dated 90s of the twentieth century and are associated with the company " Herbalife" The company's products were rapidly distributed throughout the country. Tempted by the possibilities of new business, thousands of people decided to cooperate with this organization. Expecting quick success many distributors suffered collapse , attributing to the fact that the activities of this company are illegal .

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

Despite these factors, the direct sales business in Russia has grown significantly in the coming decades.

By the beginning of the new millennium Russian market All global network marketing leaders are present.

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

No.	Company name	Brand country	Products	MLM market share in Russia (%)	Global sales volume, $ billion
1.	Amway	USA	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	Wide range of products: from cosmetics to dietary foods	27,4	1,35
4.	Mary Kay	USA	Cosmetics	4,9	3,7
5.	Faberlic	Russia	Oxygen cosmetics made from natural ingredients	4,8	no data
6.	Herbalife	USA	A variety of products for balanced nutrition, weight control and appearance care	3,0	4,47

The table shows that the world leader in this industry is the company “ Amway"in Russia it 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 do you need 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 advantages, network marketing is a fairly popular activity.

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

Distributors' earnings vary significantly, which does not depend on the level of education, profession, number of children, marital status and other factors.

A small percentage of sales agents achieve results quickly and easily. This is because success requires knowledge and experience.

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.

A sales agent must realize that the result of his activities depends only on his efforts and dedication to the business.

Tip 3. Learn and develop

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

To be effective, you should write a list of your acquaintances in a notebook and update it periodically.

Tip 5. Present business and product

Based on the list, you should “get in touch” with potential partners or clients. The number of presentations influences the final result.

Tip 6. Consult sponsorship line

It's better to learn from other people's mistakes. Top line partners have more experience and are always ready to help the distributor, as they are personally interested in the success of the entrepreneur.

Tip 7. Build a business based on the developed strategy

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

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

It is also worth noting that downline partners also observe 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 No. 1. Should a beginner start?

It's worth it, but you shouldn't expect quick success. No risk of being in the red, small initial investments, high-quality educational programs, help from partners - factors that can influence success.

Question No. 2. How to make your first money in network marketing?

When starting cooperation with a “network” company, sales agents strive to do so as quickly as possible. The activity should begin with simple retail sales.

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

Question No. 3. Network Marketing: Is it Legal?

The direct sales business is a legal activity, which is confirmed by the very fact of 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 asked to deposit an initial fee, pay for mandatory training and purchase a minimum quantity of goods. This is accompanied by the absence of receipts and invoices confirming the purchase of products or the provision of services.

Also the consumer should be wary of poor product quality or lack thereof.

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

Question No. 4. What reviews does network marketing have - is it possible to really make money from it?

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

Here are some of them:

Review 1."At first 2000s a colleague at work suggested trying the company’s products “ Oriflame" I really liked the product and became a regular customer. A couple of months later, she invited me to become her partner in business 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 as my network grew (at that time I had 34 people on my team), it became increasingly difficult for me to combine household chores and business.

As a result, income began to decrease, and at a certain 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 ambition, determination and activity. One girl from my structure achieved great success in " Oriflame" I don’t regret anything, the knowledge and experience gained at that time allow me to now successfully do my business.

Olga, Samara»

Review 2.“In the second year of university, our stream was “swept by the virus” of network marketing. Earning opportunities from " Faberlic» fellow students discussed everywhere. I've never been a fan of sales, but I still decided to give it a try.

Over time, I realized that it’s hard to make money in this business; the bulk of the income from your turnover goes to your higher-ranking partners. To achieve success, you must be able to sell products.

I do not advise anyone to engage in network marketing.

Alina, Rostov»

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

Unexpectedly, an old friend, whom he had not seen for many years, approached me with an offer to do business in collaboration with the company “ Amway" At the presentation, he told me about the possibility of decent earnings in a year or two. But I was told as quickly as possible that I should focus on personal sales of expensive products that have a significant margin. So I started in business by selling water filters and cookware sets.

I have enough wealthy friends and, to get out of my situation, I had to actively promote the products. In my first year in network marketing, I weekdays carried on 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, achieved 9 – 12 % levels of achievement.

Next, I studied the company’s marketing plan in more detail and began to more actively develop my own network of distributors. I'm currently at the level Platinum Independent Entrepreneur.

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

Andrey, Peter»

Question No. 5. How to distinguish network marketing (MLM business) from a financial pyramid?

Most lead their illegal activities under the guise of direct sales companies.

The table shows comparative characteristics these organizations.

Comparison criteria	Network marketing	Financial Pyramide
1. Initial investment	Typically a small initial investment. For this money, the distributor receives “tools” for his activities: catalogs, information about the company, product and detailed description of the business plan. Many companies, with a certain volume of initial purchases, provide these materials for free .	Impressive start-up investment from 100 to 6,000 dollars. From this money “bonuses” are paid to higher “agents” of the pyramid.
2.Product	All activities are based on the sale of products. The product is of high quality and is in significant demand in the market.	The product is unavailable or has little value to consumers.
3.Priorities in the organization's activities	Receiving profit from the sale of products and its fair distribution between distributors and the manufacturing company.	Attracting new participants and distributing profits from their contributions between higher-level “distributors” and the organizers of the pyramid. The emphasis in activities is on making quick money.
4. Paperwork	Registration of depositing money in a legal way: purchase support 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 promoting the manufacturer’s products to the market and corresponding remuneration for sales agents.	The plan only involves attracting new “agents”.

Question No. 6. How to choose an MLM company to start?

Beginners who consider the direct sales business to be a suitable activity are faced with the 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 choose an organization with a good reputation and significant experience in this field.
• Products. The basis of any trade is the 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 clients turn to the sales agent again. The diversity of the product range is also a significant factor when choosing a company.
• Tutorial. The education system has a significant impact on business success.
• Availability of the company's business on the Internet. Not being online significantly reduces opportunities for business growth.
• Business plan. It is important to evaluate the company's marketing and sales plan against the criterion of fair distribution of the organization's profits. You should also find out if there are restrictions. The best view business plan is " multi-stage plan with compartment».

Question No. 7. I want to try myself in network marketing at Oriflame, Faberlic, Amway - what do I need for this?

In order to become a distributor of direct sales 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 an agreement, it is necessary for the newcomer to have a sponsor who will help prepare the documents.

12. Conclusion + video on the topic 🎥

In recent decades, Russia has been developing rapidly different methods product promotion, one of which is network marketing. Despite its controversial reputation, this method of trading has become convenient and popular among customers.

Possessing thorough information about what constitutes direct sales business , the consumer can make the best decision about its use - to access quality goods that are not available in retail stores, receive additional income or develop their own online business with the prospect of significant income.

In conclusion, we also suggest watching an interesting video about online business:

What is network marketing - the path to success or a mythical way to make money? Historical facts about MLM + pros and cons + TOP-5 companies in the Russian Federation.

What is network marketing?

Most people agree that these are some kind of fraudulent schemes that allow only a few lucky people to make money.

Such thoughts are related to the main problem of MLM - these are extremely high promises to clients.

Today, after reading the article, you will learn what the essence of network marketing operations is.

And, of course, you will get an answer to the question: is it possible to get real income using such a business scheme.

What is network marketing: historical background

Network marketing (MLM) in its current form was not a separate business development model. It appeared as a manifestation of the need to sell goods.

Who was the first to discover such a scheme and become the founder of a network business?

The founder of the first network sales scheme is Karl Rehnborg.

If you thought that this person had been building his policy for decades before opening a business, this is not so.

All complex things began with a banal approach.

Karl Rehnborg grew alfalfa on his property. At that moment, an idea struck his bright head:

"What if everything useful material Can alfalfa be converted into a form edible for humans, so that its intake can increase the vitamin tone of the body?”

Undoubtedly, Karl had a good goal.

Later, he opened his own line of healthy food and began to offer it to friends and work colleagues, explaining all the usefulness of the new product.

It is interesting that out of the kindness of his heart (this cannot be explained by other reasons), Karl gave away goods just like that, without demanding any money in return.

Do you think there was an effect from promoting free useful products?

No. Nobody believed Karl. Everyone was very confused that a person could simply give away a useful, worthwhile product.

Carl Rehnborg came to an unexpected conclusion: if a nutritional supplement was sold at the average market price, and not just given to friends, demand would appear.

And he hit the nail on the head!

Karl began to use this business scheme, giving rise to one of the main tenets of MLM - mutual assistance and team support.

Rehnborg's friends began buying his product. They no longer thought it was a cheap deception for one simple reason - it was no longer cheap.

Then Karl began to look for new ways to expand his network of buyers. And again I came to the correct conclusion!

They consisted of a percentage of the sale food additives. Now do you recognize how a standard network company works? That's how it all started.

The result of the work of Karl Rehnborg:

• 1934 - Carl founded the California Vitamins company, thereby expanding the range of products sold.

In 1934, Rehnborg renamed the company Nutrilite Products.

The operating principle remains the same.

A whole network of product distributors, so-called partners, has formed.

Each partner attracted new employees by offering a percentage of product sales and dividends for quality organizational activities.

Karl Rehnborg is known throughout the world as the “father of network business.”

After a short historical sketch, it’s time to turn to the realities of modern MLM business.

What is modern network marketing: terms and definitions

Network marketing- This is one of the types of retail sales of products, based on immediate, direct interaction between sellers and consumers.

A feature of network marketing is the opportunity for each client to become a marketer.

It would be most correct to compare a network business with a multi-level dealership. MLM also consists of several levels.

It’s not for nothing that such organizations are often called financial pyramids!

Let's look at the main components.

The first stage of the pyramid: manufacturer – distributor

The first stage of activity under the MLM scheme is that the manufacturing company provides its products to the partner.

Partner is individual, which enters into a cooperation agreement with the supplier.

In the CIS, this agreement is not included in the labor format, i.e. does not provide you with social guarantees and has a special form of taxation.

The terms of the contract have similar clauses in any area of ​​network business:

• mandatory use of the manufacturer's products by the partner;
• attracting new partners to the organization;
• work according to a clear scheme defined by the organizers;
• unquestioning adherence to the moral principles and policies of the company;
• minimum monthly sales volume.

Subject to fulfillment of each clause of the contract, according to the MLM company, you get access to unlimited earnings.

Second stage: second-order partners

The whole essence of the MLM activity scheme begins with the second order.

Each partner who was invited by a participant of a higher level (1st level) performs all the same functions as his supervisor.

There is only one difference - part of the income from sales remains in the pocket of the superior curator.

Each participant, in the end, strives to form his own structure, since this brings real income in the form of dividends from his own sales and the activities of his “subordinates.”

P.S. The word “subordinates” is deliberately placed in quotation marks: in the structure of network marketing there is no concept of line management.

All relationships between colleagues at various levels are based on mutual assistance - this is simply beneficial for all partners.

Third stage: entry-level partners

Lower-level partners differ from founders only in that they have less income. At the same time, functional responsibilities, as units of MLM, remain unchanged.

Work at the first or second level involves manifestations of maximum activity not in selling products, but in promoting and forming one’s own structure.

An interim summary should be made:

The interaction pattern of network sales involves the development of the structures of each employee.

The explanation of this process is very simple - each subsequent seller receives a percentage of sales + dividends from the entire network organized by him, in the form of a percentage of the profits of “new” participants.

Network marketing - is it that simple?

The concept of network business and MLM structures has negative associations, especially in the CIS, where people have learned from the bitter experience of financial pyramids.

This section provides the reader with a comprehensive overview of how network marketing works - an unbiased assessment of income opportunities.

Positive aspects of network marketing

Absence linear system manuals.

You work for yourself, which is very similar to entrepreneurship.

Close-knit team.

Each partner is interested in supporting “junior colleagues”, as this brings him financial benefits.

There will always be someone who can help organize your networking activities in the right direction.

Supervision is the basis of a network business.

Possibility of constant growth.

Another positive aspect of MLM.

Everything depends only on your abilities, including earnings.

Very significant experience in interacting with people.

This is a useful skill for everyday life and the development of your own entrepreneurial project.

A network business can be considered as a platform for the further implementation of your own.

Flexible schedule.

Representatives of MLM structures can devote from 10 to 30 hours a week to work, thereby combining it with work or study.

You must understand that an online business cannot replace your main source of income.

At least in the first stages of activity.

Negative aspects of network marketing

Possible destabilization of the network structure at any time.

This process may be triggered by the activities of individual partners, which will not meet the company’s standards.

You should consider the possibility of the collapse of the entire structure, since many years of experience of MLM participants proves this possibility.

Uncertain payment standards.

An example is American company Starcom, whose representatives promised high payments to each participant.

The result is that the partners took out loans, pledged property, and the company paid less than 25% of the announced amount.

It's not hard to guess which one material damage clients received.

Opportunity to get into a financial pyramid.

Imagine a situation in which you invested in an MLM structure by purchasing an initial package of products.

Several months pass, the customer structure expands, they also make deposits and purchase products.

Another month passes, you have not yet been able to cover even your own expenses, since the product is not in demand.

The company is closing...

In this situation, approximately 50% of participants remain without profit.

They were unable to sell the product, but made a significant investment.

If you have never dealt with entrepreneurship, it will be very difficult to “stay” in the MLM operating mode.

The specificity of the activity lies in the constant moral tension, since you are responsible for your sales and the entire organized structure.

After analyzing the pros and cons of network marketing, we can assess the degree of risk of such business activities as quite high.

A special feature of working under a network scheme is constant responsibility for one’s own work + training and control of lower-level partners.

You already know what network marketing is and can independently assess the prospects for development in this direction.

If you are confident in your organizational talent, as well as the abilities of a manager and financier, it’s time to move on to choosing an employer.

Network marketing: choosing an employer

Your network income and confidence in stability depend on the right choice of employer.

First, we need to consider possible options for the Russian business space.

Top 5 Russian MLM market

Network company name	MLM market share (%)	Description of activity
	~30	Sale of cosmetics, pricing policy - acceptable for the middle class. Be prepared to meet a huge group of women and find your place in it. Networking activities at AVON are more suitable for girls.
	~30	Marketing area: cosmetics, souvenirs, healthy food. One of the leaders of the Swedish MLM market. The advantages include increased loyalty to your employees. Working in this network company will allow you to have a small but stable income.
	8	Stability is the most important thing the right word to describe the activities of the AMVAY company. The scope of marketing is from household utensils to dietary supplements. Unlike the companies mentioned above, it provides equal chances for development, regardless of the gender of the employee. This fact is derived from the wide range of products offered.
	5	A company that only accepts women. Specialization: cosmetics, beauty care products. One of the most experienced network organizations, but still not widespread on the Russian market.
	4.5	Large manufacturer of natural cosmetics. It is one of the most progressive companies on the Russian market and has a strong base for network marketing.

The main criterion for choosing an MLM company is experience in the market. The explanation is very simple: you will get the expected result, verified by others.

Working for “newbies” in the MLM market is dangerous, because you cannot be 100% convinced of the veracity of all obligations.

You can learn about the many benefits of network marketing from the video:

What is network marketing? After reading the article, you are already able to independently determine the meaning of this term.

Network marketing evokes a subjective attitude in every reader.

Only one thing can be said with 100% confidence - it is possible to make money working in the MLM system and you cannot argue with that.

A completely different question: will you be able to do this?

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Top 100 direct selling news 2017– the most significant rating for network companies. This event is awaited by many companies around the world - why?

The annual DSN Global 100 ranking is compiled by Direct Selling News magazine. A reputation for positive industry reporting has made DSN magazine a trusted journalistic resource for the direct selling industry. Since 2004, the magazine has focused on the positive stories of direct selling companies, including the opportunities provided to millions of independent entrepreneurs, products and services that have helped change the lives of consumers, and the philanthropy of industry members who have consistently reached out to those in need.

Top 100 dsn 2017 is a list of the most profitable direct sales generation companies in the world for 2017.

This indicator is very important and shows the stability of the company, their growth and development.

You can also get acquainted with the the best system for building an MLM business in the CIS and EUROPE

System for building large structures in mlm business. Information from practitioners! Click to find out...

2017 DSN Rank MLM company	Company	G100 2017 Revenue (FY2016)
1	Amway	$8.80 billion
2	Avon	$5.70 billion
3	Herbalife	$4.50 billion
4	Vorwerk	$4.20 billion
5	Mary Kay	$3.50 billion
6	Infinitus	$3.41 billion
7	Perfect	$3.06 billion
8	Quanjian	$2.89 billion
9	Natura	$2.26 billion
10	Tupperware	$2.210 billion
11	Nu Skin	$2.208 billion
12	Primerica	$1.52 billion
13	JoyMain	$1.49 billion
14	Jeunesse	$1.41 billion
15	Oriflame	$1.38 billion
16	New Era	$1.16 billion
17	Telecom Plus	$1.12 billion
18	Belcorp	$1.09 billion
19	Ambit Energy	$1.08 billion
20	USANA	$1.01 billion
21	Pola	$1.004 billion
22	Young Living	$1.00 billion
23	SUN HOPE	$940 million
24	DXN	$927.0 million
25	WorldVentures	$926.6 million
26	Isagenix	$924.3 million
27	Yanbal	$924.0 million
28	Team Beachbody	$863 million
29	Market America	$798 million
30	A C N	$750 million
31	Stream	$735 million
32	Tiens/Tianshi	$695 million
33	It Works!	$686 million
34	Team National	$659 million
35	Yandi	$644 million
36	Miki	$597 million
37	AdvoCare	$586 million
38	Arbonne	$541 million
39	Plexus Worldwide	$532 million
40	Rolmex	$515 million
41	PM International	$460 million
42	Scentsy	$456 million
43	LegalShield	$450 million
44	Le-Vel	$449 million
45	Omnilife	$375.93 million
46	YOFOTO	$375.92 million
47	Fordays	$365 million
48	Faberlic	$356 million
49	Kang Ting	$348 million
50	Nature's Sunshine	$341 million
51	4Life Research	$328 million
52	AnRan	$321 million
53	Naturally Plus	$300 million
54	NHT Global	$288 million
55	LR Health & Beauty Systems GmbH	$286 million
56	Merro	$283 million
57	Menard Cosmetics	$267 million
58	Family Heritage Life	$265 million
59	Viridian+	$263 million
60	Pro-Health	$257 million
61	Noevir	$249 million
62	Hy Cite Enterprises	$233 million
63	Resgreen	$232 million
64	KK Assuran	$229 million
65	Take Shape For Life	$222.4 million
66	CUTCO	$222.0 million
67	Southwestern Advantage	$218 million
68	LifeVantage	$207 million
69	Kangmei	$206 million
70	Pure Romance	$203 million
71	Alphay International	$200 million
72	Princess House	$195 million
73	Mannatech	$180 million
74	Charle	$173 million
75	BearCere' Ju	$170 million
76	Youngevity	$163 million
77	Seacret	$161 million
78	Kasley Ju	$154.4 million
78	Longrich	$154.4 million
80	Giffarine Skyline Unity	$154.0 million
81	Marketing Personal	$153 million
82	ARIIX	$151 million
83	World Global Network	$146 million
84	Naris Cosmetics	$144 million
85	FuXion Biotech	$135 million
86	New Image Group	$124 million
87	Ideality	$115 million
88	Golden Sun	$103 million
89	Zurvita	$100 million
90	Diana Co.	$98 million
91	Vestige Marketing	$97 million
92	Global Ventures Partners	$92.1 million
93	Koyo-Sha	$91.8 million
94	Total Life Changes	$88 million
95	Immunotec	$82.2 million
96	Jimon	$77 million
97	Nefful	$75 million
98	Captain Tortue	$71 million
99	Shinsei	$69.4 million
100	Vision International People Group	$69.0 million