How to open a kitchenware store. Network marketing or MLM: what is it, how is it earned and why is it dangerous

Probably, most of our readers at least once in their lives had to look for additional income, or even a place of their main job. Moreover, this happens not only with young specialists who have just left the walls of an educational institution. Everyone is looking for a job or part-time job, from schoolchildren to pensioners. The reasons are different - someone does not have enough money to meet basic daily needs, someone wants to save up for an expensive car or apartment, young people living with their parents strive to gain at least minimal financial independence.

The search for options, as a rule, begins with the study of the media and sites that post job ads. Experience shows that there are almost no valuable offers there. And some we simply do not pay attention to, believing that they are not worth it. Network marketing ads often fall into this category. The attitude to this occupation in our society is very ambiguous and mostly negative. Epithets like "scam" and "divorce" are not the toughest in relation to MLM (abbreviation English term MultiLevel Marketing, which "in our opinion" means "multi-level marketing"). But is it really so sad?

We are all adults and we understand that it is possible to draw some conclusions only after studying the issue. And at the same time, many of us sin with unreasonable assessments of this or that phenomenon, inspired by other people's impressions or other people's experience (it doesn't matter, negative or positive, but someone else's). It seems that network marketing has fallen victim to just such an assessment, although many do not even really understand its essence.

In a nutshell, this is just one of the ways to promote and sell a product, which, like any other, has its advantages and disadvantages, which we will deal with today. This whole scheme is carried out with the help of a large number of people forming a network. Information about a product is spread from person to person, there are no intermediaries who buy goods in bulk and resell them at an inflated price, and there is no expensive advertising. The significance of these factors will be explained with an example.

All of you know Orbit chewing gum and have at least an approximate idea of ​​how much it costs in our stores. So compare - the cost of producing one package (10 pillows) is equal to a maximum of 50 kopecks, and we buy it hundreds of times more expensive. And all because before it hits the counter, it passes through the hands of several wholesalers, each of which makes its own margin (the manufacturer, of course, also lays his own). Add here a lot of money for advertising in the print media, on the streets, TV advertising, and you get a figure from the store price tag.

MLM is a direct sales system, devoid of all these heaps, so the goods in such networks are often cheaper than in retail outlets. And not because they are fakes or low-quality goods, as some people think.

The earnings of network members consist of a percentage of the cost of goods sold and a reward for attracting new people. That is, it is profitable to involve newcomers in the network, but the process is not simple. Here you need to be a bit of a psychologist and be able to unobtrusively convince, conveying to the person the meaning of this sales technology and its inherent advantages.

By the way, it is with such an unpopular phenomenon as financial pyramids that many people compare MLM networks. All this comes from a misunderstanding of the sales mechanism. But the mere fact that network marketing does not require large investments and does not promise fabulous profits in return for nothing should suggest that this is not a “scam”.

Here, in order to achieve something, you need to work hard to create your own clientele. And profit does not always come immediately, for some time, you may have to work in vain. But in any case, your efforts will bear fruit, and after a certain period of time you will begin to receive income. If you connect to a large network, then you should not count on a huge income, but you can definitely earn an additional 20-30 thousand rubles a month.

True, in order not to get burned, you need to be able to distinguish a real network company from a pyramid that disguises itself as one. Therefore, we advise you to take into account a number of points before becoming a member of such an enterprise and attracting friends and acquaintances to it:

1. First, real MLM company will offer you to sell a specific product (product or service) from the manufacturer's catalog. You will not be forced to buy goods for the future, you will only work with products already ordered by your customers and pay for them on the day they are received from the warehouse.
2. Secondly, you should be alerted by the requirement to pay membership fees or buy some "securities" that actually have no value outside of this structure. You will also not be paid for the volume of products sold. You will be rewarded solely for the number of attracted members who have already paid the same membership fees. If everything is as we have described, then you have landed on a financial pyramid and you should not linger there.
3. And finally, thirdly. There are companies that offer to sell some hardware or software, but require you to pay a certain amount in advance for a certain package of services, without which you will not be able to work, as well as attract a couple of new participants. The mini-network that the participant creates in this way becomes the source of his income. To be honest, such schemes look doubtful, although, in fairness, it should be noted that such companies still have a product for implementation. But climbing the career ladder here is almost impossible, even with the skills of a psychologist, having leadership skills and oratory.

That is, the conclusion from all of the above is obvious - you can engage in network marketing and succeed in this business only if the conditions for cooperation are clear and transparent, and there are no points of doubt.

1. Let's start with the fact that the MLM system makes the cost of goods (services) much lower for the buyer, since the price does not include advertising costs and intermediary margins.
2. The goods are delivered to the consumer in a short time due to the fact that the logistics are well thought out and in different regions(cities, countries) the company has a network of storage facilities.
3. Counterfeits and product substitutions are excluded, which is possible in the process of numerous resales. Grid companies go directly to the end consumer and falsifications are almost excluded here.
4. Employees involved in multi-level marketing are highly motivated, both in terms of the possibility of high earnings, and in terms of building their own business.

Sellers' income consists of a percentage of sales, but not only. They can also recruit new people and be rewarded for contributing to network expansion (hence the name network marketing). Each member of the network can eventually, having created a fairly wide client base, establish their own small network business. The MLM system is beneficial to all parties - the manufacturer, the consumer, and the sellers (distributors).

For the manufacturer, this is a real opportunity to save on advertising without compromising the popularity of the product. The consumer is satisfied with the fast delivery, guaranteed quality, comparatively low prices, the availability of samples and catalogs, as well as the ability to sometimes purchase those goods that are not on store shelves.

As for distributors, they have the opportunity to build their own business without a large start-up capital, on an already prepared market (after all, the main network companies are widely known to the population) with a built-in sales system. In addition, they have the opportunity to get the necessary knowledge for free, as MLM companies pay a lot of attention to training and mentoring.

So, it would seem, everything is simple. But then why do many people who have tried themselves in this business fail and consider it nothing more than a scam? Most likely, they either did not show the necessary perseverance, or they simply lack the qualities without which there is nothing to do in network marketing.

It must be admitted that networking is not for everyone. And not because someone is bad, but someone is good. It's just that this job, like any other, requires a certain set of qualities, without which success will be very difficult, if not impossible.

As a rule, people who do not accept the rigid framework of “start-to-start” work, who are creative, sociable, persistent and striving to build their financial independence can advance to the highest levels. with my own hands and according to your own understanding If you want your life and your income to depend solely on you, if you know how to set goals and persevere to achieve them, know how to communicate freely with people, have the gift of persuasion and the makings of a psychologist, and also strive to constantly improve your level your education, then MLM is exactly what you need.

And separately I would like to say about patience and perseverance. The fact is that most of those who did not achieve results in this field, gave up at the initial stage of work. After all, this is not a job where, no matter how successful you are, you will still be paid your due salary. You need to be ready to work for some time on future results (even without making a profit), create a client base, and master the intricacies of the profession. But over time, your perseverance and your patience will certainly bear fruit, which will definitely please you.

Of course, you should start with choosing a network company. There is different variants- you can connect to a company with a name that is well known to people, where there is already an established and developed distribution network. The product of such a manufacturer is easier to sell, because people know it and trust its quality. But there is also a downside here. It consists in the fact that in such a network you will find yourself very far from the top, it will be difficult to move forward, and your income will not be very high.

Another option is to join a newly established company. Difficulties in this case will lie in wait for you from the very beginning, because you will have to convince people to purchase an unfamiliar product from a little-known manufacturer, and buyers are usually reluctant to take such a step. But over time, when the company creates a name for itself, you will find yourself on the top steps of the pyramid, and you will have a corresponding profit.

However, no matter which option you choose, first of all pay attention to the payment system and the bonus program. The scheme for making a profit should be clear and transparent, there should be no penalties, and the employer's requirements for sales volumes should be realistically achievable.

Having decided on the choice of a company, think about how to generate income. It can be direct sales, or it can be receiving passive income from attracting new members to the network.

Most often, beginners start with the sale of goods and this, in principle, is justified. Being engaged in sales, they get the opportunity to get comfortable in a new niche for themselves, study the market and create a customer base.

But professionals advise both to engage in direct sales and attract new people to the network. After all, it is not at all difficult, when telling a client about a product, to tell about the prospects that your work opens up. Most likely, some people will also want to try their hand at this business in order to get additional funds and the opportunity to purchase products at purchase price.

When will it pass certain time, and you'll do a good job of building your distribution chain, sales can be eliminated altogether or dealt with much less. After all, you will receive the main income from the work of your subordinates.

Any occupation has its pros and cons, and network marketing is no exception:

1. From a positive point of view, it is worth noting the opportunity to buy high-quality products for yourself cheaper by a third, or even more than their “sales” value, that is, the price that you announce to your customers.
2. The second plus is the absence of the need to invest your own money in the business as a down payment ( membership dues), of course, if it is a legal network company, and not a disguised pyramid scheme.
3. Not to mention the possibility free education. As a rule, companies, taking care of increasing sales and expanding their network, do not spare time and money to familiarize distributors with their products, effective techniques and sale rules, ways to build your own business for passive profit, etc.
4. And, finally, with the advent of the opportunity to conduct such a business through online services, distributors no longer need to stop people on the streets in search of customers, come to their homes, offices, etc. Now you can work remotely.

Among the shortcomings, perhaps, it is worth noting the fact that the expansion of the network leads to a decrease in income, and new partners receive much less than those who came before.

Much more can be said about network marketing, but we set ourselves the task of explaining the essence of this phenomenon as simply as possible and giving you the opportunity to navigate how such work meets your needs and characteristics of your character.

Hopefully, you will now be able to make your decision to participate (or not participate) in MLM based on your own conclusions, and not be guided by the feedback of former unsuccessful distributors. Good luck.

This is a special type of business in which you can earn a lot of money, help a large number people and at the same time set fire to full program.

It's just a very meaningful and logical business.

Get familiar with this profession. Understand what you can get from network marketing and form your own informed opinion.

What is the essence of MLM business

In network marketing, as in any other business, your main task is to create a network of consumers. People buy products from the MLM company you work with, and the company pays you a percentage of their orders.

But if the whole business was reduced to the personal attraction of customers, it would not be so interesting. It would be a regular affiliate program, like in many online stores - bring a client, get a commission.

The main strength of a multi-level business is that you can look not only for clients, but also for partners. And as a result, you create a network of consumers not alone, but with a team.

I will give an example that literally fascinated me at the beginning of my networking career.

An entrepreneur friend of mine who, by my standards, was earning a lot of money in MLM, told me the following:

"Andrey, look. Suppose in the first year you find only 5 smart partners who decide to develop a business with you. In the second year they find 5 partners each - and you have 25 new key partners in your team.

For the third year you have 25*5=125 new partners in your team. For the 4th year, 625 partners are already coming. And after 5 years, 3125 people join the team.

You didn't invite them personally. Your partners brought them. But you get your percentage of the entire generated turnover. And since people order groceries every month, you get your check every month.”

After that conversation, I could not sleep for several nights. I decided that I could connect five people in any way in a year. And that means - sooner or later I will succeed.

Of course, in real life this scheme does not work as simply as I described. Of course, not all invitees will be in business. Someone will remain a client. And someone will leave the business altogether and will not even buy products.

But one way or another, over the past 5 years in my current company, I came out with an income of about 8,000,000 rubles. in year.

How MLM business works in the 21st century

Previously, many people perceived the MLM business as follows: “A. Well, you have to run around with bags, catalogs and sell. In the 21st century, such methods of work are no longer relevant. Now many MLM companies work with clients through an online store.

Customers order products directly from the company's website. The company (not you!) brings them products. And you are paid a percentage because the client bought on your recommendation. Thus, there is no need to run with the catalog now.

Our task is to fill the store with customers.

Moreover, you need to find a client once, and you earn from each of his orders.

Network Marketing Benefits

What are the pros and cons of network marketing. Let's start with the positives.

1. You do not need to invest in the creation of a product warehouse.

Your online store is filled with goods by an MLM company.

The company is engaged in production, delivery, logistics, monitors the availability and shelf life of products, organizes marketing campaigns, keeps records of remuneration.

Pay attention: you don't spend money on all these tasks. It's the company's expenses, not yours.

Compare this situation to a classic business where an entrepreneur has to pay rent, bookkeeping, grocery shopping, and pay salaries to all of his employees. And that's before he even started making money.

In network marketing, there are no such headaches. And in fact, you need to solve one problem: to organize the flow of customers to the online store.

How to do this is usually taught by the team you join. Rather so. I can't speak for all the teams - in our team we teach this.

2. You can combine MLM business with your main occupation.

No need to quit your job, quit your main business, or give your children to a nanny.

You can grow your business by investing as much time as you have.

This is a plus and a minus at the same time. Because most people absolutely do not know how to plan and effectively manage their time. Especially if the boss from behind with a stick does not push.

3. This business gives freedom. You can develop it from almost anywhere in the world where there is an Internet connection.

For example, my wife and I travel a lot. Therefore, I am very inspired that my business is now placed in my mobile phone. And I can develop it equally effectively both from my apartment in Moscow and during my life in Thailand, where we usually spend the winter.

Watch this video from the 13th minute to find out how network marketing differs from a classic business.

4. No risk

Even if this business does not work for you, what are you risking?

The cost of failure in network marketing is ridiculous. This business does not require much money. Basically, in the MLM business, you invest time, not money.

Moreover, the main point of investing time in the MLM business is this: you invest time and effort now in order to receive passive income from the created network of consumers in the future.

Just in case, I’ll clarify that passive income is income that comes to you regardless of whether you work or not.

And what do you need money for in MLM?

At a minimum, you start using your company's products. But let's think logically. Swapping some Head & Shoulders for your network company's shampoo is not a risk. Or, for example, replace breakfast from an omelet with fried sausage for tasty and healthy protein shakes - anyway, you will spend this money on food.

Cons of network marketing

1. Very low entry threshold.

Usually, to start a business in network marketing, it is enough to place an order for products for $50-200. This is both good and bad.

Good, because you don't really risk losing a lot of money.

Bad, because it allows people who hope for a lottery ticket to start a business. And this means that at the first difficulties, beginners often lift their paws and say, “Well, okay. It doesn't hurt, and I need to earn more. I'll go do something else"

Compare that to buying, say, a McDonald's franchise for half a million bucks. Yes, a person who has swelled that kind of money will not sleep at night, gnaw the earth with his teeth, but he will make sure that he succeeds. To squander that kind of money?! Yes, for nothing.

2. There is often no quick money in this business.

For entrepreneurs, this is not a minus, by the way. In classical business, people are happy if they go to zero in 2-3 years.

But for those who are used to getting paid for the time spent at work, and not for the result, this situation may come as a surprise.

In the network, you start earning only when you have managed to master the necessary skills. Has the team started to grow? Is your online store getting more customers? Fine. You start earning good and stable money.

But that could easily take a year. And people with no experience have even more.

If it shocks you - pichalka. Perhaps network marketing is not your type of business. And it would be better to stay at work for hire until the end of your days, for example.

3. You will encounter other people's advice and negative opinions.

Many people don't understand the difference between legitimate network marketing companies and pyramid schemes.

How to explain what network marketing is to a person with brains

You will be told that you are doing some bullshit.

Newbies leave the business because someone told them network marketing is bad.

The novice himself did not have time to learn this profession. He didn't understand her. There is no well-founded opinion. So if 10 people tell you that you are a fool and your business is a fool, you will probably believe it.

Many believe - and leave.

What to do?

Make sure you get to know the profession better. Read a couple of books, watch a couple of smart films about MLM, meet your sponsors, go to training.

The higher the level of confidence in the profession, the stronger the armor of the partner. The more likely it is that he will hold on to his opinion, and will not fall under the opinion of other people who, in fact, do not care about his future.

If you depend heavily on the opinions of other people, you will have a hard time in network marketing. Although what is really there ... Not only in network marketing.

Summary

Let's end where we started.

Network marketing is a special kind of business where you can make a lot of money, help a lot of people and at the same time fire up to the fullest. It's just a very meaningful and logical business.

This is a risk free business. A business that gives you the opportunity to get both money and free time.
Get familiar with this profession. Understand what you can get from network marketing and form your own informed opinion.

If you do not want to become victims of scammers, then you need to know exactly what an MLM business really is. Because here it is too easy to fall into the trap of a financial pyramid, and end up without money.

In this article, we will analyze how to distinguish a real MLM business from financial pyramids. And is it really possible to make money in MLM?

And for starters, let's look at what the essence of the MLM business is, and why it is so much disliked by "the people".

What is MLM business in simple terms

The name "MLM business" comes from the English MLM - "Multi-Level-Marketing" (literally - "multi-level marketing"). Other names for the same phenomenon are network business, network marketing and the new "fashionable" name - "network marketing".

It denotes one of the options for organizing marketing - a scheme for distributing the company's products. Classic business is when there is a store where people come to buy our goods. The network business option is when a lot of people take our product and distribute it among their friends.

That is, in MLM we do not hire employees for a salary, we do not rent stores. Our task is to recruit as many volunteers as possible who will distribute our products themselves, receiving a percentage of sales for this.

In addition, these volunteers of ours will recruit their own volunteers. And then they will already receive a percentage not only from their sales, but also from the sales of all their “recruits”.

Who Invented MLM?

MLM as a type of marketing was invented, of course, in America. The early network organizers realized that people were much more willing to buy certain categories of products when they were recommended to them by their acquaintances. These are products such as floor cleaners, shampoos, cosmetics (note that almost all of these are “for women” products).

And it turned out to be a good thing, in principle. The goods of network companies were usually cheaper, because there were no costs for renting premises and salaries for employees. And in terms of quality, they often surpassed analogues from stores. Thus, networkers were able to bypass the most severe competition in the market of household goods.

But here's the question. Why do “the people” dislike this very MLM and network business so much?

Why is MLM so disliked?

If you do not believe that MLM is not loved, look at the ads they give in newspapers and on websites. They will never write directly - they say, we are recruiting people into the network business, come to the meeting then and then.

No, everything will always be hidden there and disguised as "opening a branch of the world's largest company" and under "need an assistant to the head of the business, I will teach you everything, salary from 50 thousand per month." Why such secrets and enticements? And because if you directly write that you are recruiting in MLM, no one will come to you. Because they don't like MLM =)

And there are two main reasons for that.

Reason #1 - Destroying Relationship Foundations

Have you ever wondered why we (humans) recommend anything to anyone at all? Why would we tell a work colleague where they make delicious sushi? Why should we advise a friend which car is better to buy? After all, it doesn't really concern us.

But nevertheless, we really want to run at least from the other end of the city, if someone needs our recommendation, and at least force him to listen to us. What is the reason for this behaviour?

Perhaps you think that it is because you are such a kind and nice person who simply strives to help everyone around you as much as possible. But actually it is not. We are happy to recommend, because in this way we dominate those to whom we recommend something.

Judge for yourself - we have some kind of Knowledge. that the person in front of us does not have (be it knowing where you can eat sushi and not get poisoned, or knowing which car is better in terms of performance). And by sharing this Knowledge, we show that we are better. Yes, yes, we are better and higher and smarter than a person who does not have this Knowledge.

And the higher the result a person receives on our recommendation, the stronger our dominance will be. Accordingly, we sincerely try to recommend only the best. And the one who asks us for advice subconsciously feels all this, and therefore believes our recommendation.

MLM should have been based on this principle, but here the whole thing is spoiled by money. When our familiar network manager recommends something to us, we always have a suspicion that he does it solely for his own monetary gain. Even if he really likes the product and would recommend it for free. But an unpleasant aftertaste remains.

Thus, MLM interferes with the fundamental set of unspoken laws human relations(It is also called the "social contract"). And it destroys friendships, friendships and even family relationships. And that's why people don't like him.

Reason #2 - Remotivated Zombies

If you have ever met a real "networker", then of course you understand what I'm talking about.

The basis of MLM marketing is strong training and strong motivation of network members. Humans are by nature very lazy and shy creatures. Getting them to sell something to strangers and unfamiliar people is not an easy task.

And therefore, each new recruit undergoes intensive training, where the emphasis is on motivation. They are brainwashed with promises of huge profits. They are told that they are the chosen ones, and everyone else only envy them. And they are also very convincingly told that their product is almost the most ingenious invention since the light bulb.

And people are gradually "blowing the roof." Can you imagine what it is like to know the whole truth alone (what is the most best job is a network business, and the most best cream- this is Oriflame), but no one believes you, and shies away from you, like from the plague?

As a result, it becomes very difficult to communicate with networkers. All they talk about is network business and about your product. All they do is try to drag everyone they meet into their structure, to the “bright side”.

And again, this leads to a split in friendly and family relationships. That's why they don't like MLM. In the minds of people, getting into MLM is like getting into some kind of sect. And the one who is “trapped” will soon begin to rewrite his apartment for some regular “Herbalife witnesses”.

But there are, of course, positive aspects as well. If you do not lose your head, then MLM business can be an excellent development option for you. And you will keep friends, and you will still find new ones.

How much can you earn in MLM?

Networkers are very fond of this joke:

A man comes to the city and sees that on one side of the street all the houses are big, beautiful, well-groomed. There are expensive cars near the houses, and all the people are cheerful and happy. And on the other side of the street, the houses are small, dirty, dilapidated. All people in rags, eat rats.

He comes to one of these dirty houses and asks a passer-by why the houses opposite are so beautiful, but here they are so bad.

A passer-by replies - "Ah, there are networkers living opposite who are engaged in MLM."

The man asks - "What are you?"

Passer-by - "But we do not believe them!"

The anecdote is hilarious. But, unfortunately, as in any other type of business, most people employed in MLM have absolutely no income. A very small percentage of networkers have an income comparable to the usual salary of a qualified specialist. And only tenths and hundredths of a percent of all mlmschikov make really big money.

How to develop in MLM?

Yes, you can make money in MLM, and even a lot. But only on the condition that you actually work. And to earn money, you will be mainly engaged in recruiting people to your structure, and not in selling the product itself.

If you want to develop in network marketing, you need to have a huge number of personal meetings every day. And we also need to ask our friends to organize parties at their home, and bring their friends - for whom we could conduct an “impromptu” presentation of our product and business.

And most likely it will take you several years to build a large and loyal structure with which you can have large incomes. Therefore, please do not flatter yourself with promises of quick earnings. As elsewhere, you have to work here.

And most networkers eventually realize that MLM is not the option to which they would like to devote their entire lives. Therefore, they go into other types of entrepreneurship. But they retain the skills they have acquired while working in MLM.

And even today there are projects that masquerade as MLM, but in fact are something much worse.

How to distinguish MLM from a financial pyramid

If you haven't noticed yet, today a huge offer has appeared on the Internet to participate in some super innovative projects. As a rule, we are talking about decisions that will turn the whole world upside down in some area. In the field of housing, in the field of transport, in the field of the Internet or in the field of telecommunications.

The only problem is that this ingenious solution is still under development, and it cannot be used yet. Or you can use it, but it is so inconvenient, crooked and weak that it loses even to free counterparts.

And you are invited to either buy a share in this project, or buy a product and pay for it every month. And people do it, and with great joy. The question is why? And then, that they can attract new members, who will also pay every month, and you will receive some percentage from their payments.

Almost like in MLM, but with one difference - there is no specific product that you could use. That is, you pay not for the product, but for the opportunity to receive money from those who are below you in structure.

And such an organization is possible precisely because of the "virtuality" of the proposed product. It does not need to be transferred, stored. It may not be used at all. The main thing is to attract all new participants “for themselves”.

How financial pyramids collapse

All these projects always end the same way. One day, people who can be attracted to the pyramid simply run out. And then the members of the "lower layer" stop paying their monthly dues. And why should they pay someone if no one pays them (because there is no one below them)?

Then the penultimate layer stops paying, because the last one does not pay them. And so on, until the pyramid burns out to the very top.

Some pyramids appear and disappear in a couple of weeks. Some last for years. But the main thing is that they always have the same ending. And if you are offered to participate in some kind of "network business" where there is no product, or it is very complex (too innovative for a mere mortal to understand its idea) - most likely you are being lured into a financial pyramid.

Here are some more indirect signs of a financial pyramid:

• Promises that it will not be necessary to sell anything and recruit anyone.
• Mandatory monthly payments.
• The impossibility of personally checking the quality of the goods (or the poor quality of the goods).

In general, it is the quality of the goods that distinguishes the real MLM in the first place. Recommendations are good. And your friend will probably buy something from you once if you advise her. But for her to pay you a second time - here it is already necessary that she really likes the product.

Therefore, pay attention to indirect signs, and do not fall for scammers. And then they themselves on the Internet like fish in muddy water feel. Is it really possible to do a real network business via the Internet?

Is it possible to do network business via the Internet?

Here it is - the golden dream of any networker. No need to go to any personal meetings, no need to recruit anyone. Stay at home, post links to your product on social networks and sites - collect the cream.

But personally it seems to me (and this is just my personal opinion) that the network business in its original understanding cannot exist on the Internet. There are two main reasons for this:

1. MLM business is a referral business. We recommend the product to our personal friends, and they recommend it to their friends, and they recommend it to their friends. This is how the structure is going. And if we recommend a product to everyone in a row, then this already becomes a regular advertisement.
2. MLM business rests on a quality physical product. That is, you can feel it, try it. And you definitely need to give the buyer the opportunity to "feel" before buying. Accordingly, you can’t get away from personal meetings.

And if you really don’t want to go to personal meetings with anyone, but work via the Internet, then it’s better to do affiliate programs. It's the same as MLM, but you just advertise some product and get a commission on sales.

That is MLM through the Internet is possible. And it is called - "earnings on affiliate programs." Look at my article, and you will understand a lot.

By the way, there are also multi-level affiliate programs. That is, there you can also earn from attracting new partners, and not from personal sales. Watch my video on how I make money on affiliate programs (opens in a new tab).

Conclusion

In no way do I want you to get the impression after reading this article that I am against MLM business. In fact, I am a big supporter of people starting to take responsibility for their own income, and trying to provide for themselves by their own efforts, and not relying on "uncle".

And to start an entrepreneurial career, network marketing is a very good option. You will gain experience, fill the first bumps, learn to resist the pressure of the public. The main thing is that it approaches everything with a head, and look at things objectively.

Otherwise, there is a high probability that you will be disappointed in the usual MLM, and instead of using the acquired skills to open your own business, you will wallow in financial pyramids and financial bubbles.

Don't forget to download my book. There I show you the fastest way from zero to the first million on the Internet (squeezed from personal experience for 10 years =)

See you later!

Your Dmitry Novoselov

Network marketing is a business based on partnerships. Its other name is MLM or multi-level marketing. The difference between network marketing and traditional business is significant.

Let's take a closer look at what MLM is. Its essence lies in the fact that the company organizes the turnover by creating a network of partners who perform the bulk of the work. In this case, the people involved in the promotion of goods are at the same time the company's customers, since they make purchases at wholesale (distributor) cost. They then resell the product at a higher price. The company spends less on advertising, its customers take care of selling products to customers.

Percentage of sales - not the only plus when working in MLM? This is, first of all, own business company distributors. Network marketing is beneficial to partners in that they receive a good reward for their work. Thus, for attracting new people to the company, active distributors are paid additional remuneration for turnover from their entire team. Such income is called passive, because, once having invited a person, having registered and trained him, the partner now receives constant deductions from his work. But often the structure of such a leader grows to tens, hundreds, thousands and tens of thousands of people. Income in this case continues to flow to the founder of the structure. Thus, in a few years, any person can secure a comfortable future.

Many people ask the question: “What is an MLM business?” First of all, this is a huge job of promoting products, recruiting new distributors. But the reward for your efforts cannot be equal to the payment for ordinary work. It is in the field of network marketing that a large percentage now concerns not only European countries or America. Great amount MLM leaders in Russia too.

Consider network marketing - what is it, what terms are used in this business? The marketing plan is the rules according to which all accruals to the company's distributors take place. It indicates everything and the conditions under which they are received.

A check is a monetary document with a payment indicated on it. It also indicates the partner to whom the payment is made and other necessary data.

Auto-concept is a term that has become increasingly used in network companies. Particularly active partners have the opportunity to receive a car upon fulfillment of their turnover plan determined by the structure.

What is MLM for most of the Russian population? Many people think that network marketing is a scam, through which especially sassy people want to collect more money in their pocket. In fact, MLM is an opportunity to have a business for people who cannot open their own company. Any network company is absolutely legal. A negative opinion is formed by the fact that distributors promise new partners "mountains of gold". Yes, the opportunity to make money in an MLM company is huge, but people forget that you need to put in a lot of effort first. Moreover, for the first few months, the newcomer will mainly hear refusals, ridicule and unpleasant statements. But if he crosses this line, gains confidence that he will continue on the right path, the opinions of other people will not be important to him. A person will strive for his goal, because he knows that he will succeed in the company. And in the future, people who are now scoffing will simply envy his victories and perseverance.

So what is MLM? This is an opportunity that anyone can take advantage of. Network marketing leads to financial independence, free disposal own time. And whether to choose a business in an MLM company or stay in your previous job is the right of every person.