mlm cosmetic companies. Network marketing or MLM: what is it, how is it earned and why is it dangerous

landscaping 14.10.2019

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Wow, this has turned into the most popular article MLM on the Internet, over 1 million views!

Here are the top 25 companies according to Business For Home based on trends and your ability to make money in 2017:

# 25. Empower Network

Back in 2013, co-founders Dave Wood and Dave Sharp looked like Tupac. Empower Network had a cult following and their message was unapologetic: "Don't be a damn wussy and buy all the groceries."

Somewhere along the way they stopped updating their original digital products and the vision was lost.

You can jump into a random Empower Network webinar these days and still see Dave Wood spitting knowledge from his Costa Rica mansion. All of the original leaders are gone except Lawrence Tam and Tracey Walker, but Dave Wood is never considered.

# 24. World Ventures

World Ventures makes a list in order to network marketing looked "fun". The vacation membership company is aimed at millennials with a slick campaign that shows people posting travel photos with "You should be here" captions.

No other MLM has come close to nailing the junior market minus Wake Up Now and Vemma, both of whom left in 2015. May be, bad sign? However, you would think that more MLMs would be caught by Instagram-focused campaigns. Calm or not, it seems to work.

# 23. Wealthy Affiliate

Ask any wealthy affiliate member if they are MLM and they will probably scold you.

While not technically MLM, Wealthy Affiliate offers hosted and a robust digital product line that compares itself to other digital MLM product companies (see Digital Altitude, Tecademics, MOBE, MLSP, Empower Network).

Give them credit though... they are still one of the biggest digital communities in 2017.

# 22. Nerium

Nerium slipped.

Seemed to be unpleasant trial shares company (1) but they still hang around like one of the best options skin care in network marketing.

They have badges to prove their worth: Inc. 500, DSA membership and some sponsorships.

# 21. Usana

Usana makes the list by net numbers ($918 million in 2015 revenue) (2).

Their forecast doesn't look very pretty, but they don't tank.

However, they were recognized as one of the "50 the best places for work", and they collaborated with the controversial but iconic Dr.Oz. Think about what you like about Dr.Oz, but it's actually a modest endorsement in network marketing.

#20 Makeup Mary Kay

I know, go right now to a fifty-fifty-year-old aunt. For half a century, Mary Kay has hung in the beauty world and they are still considered visionaries. What other 50-year-old beauty business has won best website and best Facebook, Pinterest and YouTube awards? (3)

And they don't just "hang on," either.

They sold $4 billion in 2014 (4) and their worldwide sales topped the 3.5 million mark. They are still one of the largest direct sellers of skin care and beauty products and no small win for this cutthroat industry driven by fickle consumers.

# 19. Nu Skin

Where there is Mary Kay and Amway, Nu's skin easily turns the club into a billion dollars. With over $2 billion in annual sales, they are top list candidates and they are a clear network of network marketing veterans.

However, they are not as hot as they were 5 years ago and it's hard to tell if they will be on this list 5 years from now. They donate a lot of money to charities, but they've had their fair share of scandal and cases, so it's hard to tell what their image is these days.

One thing I know: I have never met anyone under 30 who promotes Nu Skin and I lived down the street from them for 5 years.

# 18. Avon

The only MLM that can rival Amway's fortune, fame and size is Avon. With over 6 billion in revenue in 2015 and worldwide recognition, they are already in the MLM Hall of Fame.

Although they slide. Income falls in North America and their sales force is downsizing. Revenue declined 19% in 2013 and 7% in Mexico. Skip ahead to July 2015 and revenue still continues to decline, with a 17% drop (5). Analysts blame Avon for failing to maintain a strong identity for its products, as well as a strong dollar. Lesson: Always recreate yourself.

# 17. Arbonne

After three decades selling skin care products, soon Arbonne will be there with Mary Kay in terms of ancient relics still pushing lotions.

Huge success here, with annual sales in excess of $502 million. However, as with Nu Skin, trends will show they are past their glory days.

Their science is tight, management is blue chip, and products are constantly updated and upgraded for new generations. Arbonne represents the best of what other MLM sciences should hope to be. Lock for cosmetic companies.

#16. Herbalife

Rest of the world: Hello, how are you?

Herbalife: THERE IS NOTHING TO SEE HERE.

Herbalife is massive. Top 5 Income? All day. Top 5 in brand awareness? Probably top 3.

However, Herbalife, which has been universally criticized by the media (is it their fault or not? Doesn't matter, it still hurts them), and have become almost synonymous with "pyramid scheme".

The good news is that they recently settled with the FTC and agreed to pay $200 million to former distributors. Probably not a good look, but that didn't stop the students from continuing to stick with them.

# 15. Beachbody

You must have heard about the P90X and Insanity workouts, right? These great-sweaty workout DVDs are being sold through network marketing thanks to BeachBody.

Beachbody is honored for its high income and mass recognition of its products. Both are testaments to what MLM can be: a "Great Products - First-And-Money-Will-Follow" company.

# 14. Scentsy

Lifeless, scented candles explode if your older sister hasn't already told you so. The product is innovative. Flameless candles. It's simple: people love their products.

Meridian, based in Idaho, competes with doTERRA for the most word-of-mouth marketing award (and perhaps most likely spam awarded by your Facebook timeline), but their annual sales are $537 million. They are one of the few companies I would bet on in about 15 years.

# 13. Pampered Chef

Won't high-tech kitchen gadgets get hot? The chef's pampered foods were made to be sold at house parties, and that's why this company is still breaking the numbers.

Unofficial cook assistant for recruitment:

Step 1: invite your friends to come and watch Scandal

Step 2: Ask them to watch the presentation later and pull out their credit cards

I'm kidding, sort of. They were super hot, but they got cold. The Berkshire-Hathaway facility was recently profiled to reduce income and layoffs.

# 12. Forever Living

Forever Living probably deserves a place because of its long-term commitment to the aloe vera plant and products made from it. Aloe vera is hot right now.

Rarely do you see a plant rise steadily over the years. It screams longevity over the other hundreds of other full service companies. Founded in 1978, they made the Forbes 400, Inc. 500 and $2.6 billion in revenue.

Further Reading: ONE MOST effective method kill your job (not MLM)

# 11. Isagenix

Search trends show Isagenix neck and neck with Advocare, so they're buzzing nicely these days.

They are still one of the hottest network marketing companies, although I'm not sure what makes them different from all the other insider MLMs. They don't have sponsors like Advocare, but maybe that can be used to say that they pay more distributors?

overwhelming positive reviews about products on Amazon, solid sales plan and strong sales make this top 15 lock for 2017.

# 10. Amway

If all that mattered were revenue numbers, Amway is #1 or #2 (behind Avon).

What an interesting move they made. Amway is so universally recognized that it has become a household word and a ponzi scheme joke at the same time. It's hard to get off. However, you can't deny winning numbers like $9.5 billion (8) and 3 million distributors. Or call the rights to the NBA arena.

Brand potential for Amway? Aaron Gordon blossoms on the poor men of Blake Griffen and the Amway Center gets more runs on TNT and ESPN. That is all I have.

# 9. Wor(l)d global network

Wor(l)d Global Network is on fire and they are pushing the wearable technology trend. I'm not crazy, but this is really great.

I don't know what will be around them in 5 years, but they are hot right now. Their latest release is a health and disease tracking bracelet called .

They've also generated $157 million in revenue and they're just getting started. This is an innovation, these technologies will be used in all smartphones in 5 years.

# 8. Ambit Energy

Ambit has hit the Inc 5000 for 3 years in a row and they seem to keep trending. They promise lower fixed prices on the natural gas and electrical services, so they are decidedly less sexy than most of the network companies on this list. And that's probably why they thrive. No glitz or glamour, just practical savings.

# 7. young living

The essential oils are still hot. And YL was the first in this category. Used for health, cleansing and beauty, essential oils are natural, have little side effects, and hundreds of home apps.

Their lavender fields are famous and they control every aspect of production from planting to bottling, so quality is a big deal with this line. Founder Gary Young is known for setting quality standards across the industry essential oils.

So what's not to like? Let's just say it rhymes with "Moterra".

# 6. advocacy

Last year's number one network marketing company took some bad PR and slipped a bit.

A recent ESPN report (10) was a borderline hit covering the mostly negative aspects of network marketing, leaving the reader with ex-distributor quotes like this: "You're catching people in a bad place who has hope this might be a way for them to pay." for their credit card and their kids and you exploit them.”

Ouch. However, the Brees are still rolling with em and they have endorsements, products (Spark), programs (24 day challenge) and income to be 10 locks.

# 5. Tecademics

"Tec-a-who?", you think.

Chris Record's new venture is "online internet marketing education" which is still in the making, so it's the calm before the storm. Students can attend a real classroom setting (I believe in Scottsdale) or study online.

Thing is, the dude hasn't launched a single venture capital venture to date, and he already has a team staffed with major league internet marketing. Yes, this rating is based on assumptions, but Tecademics will be in my short list MLM to consider in 2017.

The concept has too much meaning. I'm just saying.

# 4. Digital Altitude

What happens when you create a program individual development e-learning focused on digital business for aspiring entrepreneurs? And encourage affiliates to spend up to $25K on programs, inspirations, and digital retreats?

Correct Answer: Bunch of internet marketers got rich

Digital Altitude isn't just a compelling game, because their training teaches distributors how to promote products, allowing them to automate and scale beyond a past list of family and friends, or getting closer to the well-dressed people at Wal-Mart.

That's why its hot and will probably stay hot for a while.

# 3. Younique

In early 2017, 60% of Younique was sold to Coty for $600 million (11), bringing their valuation closer to $1 billion.

Clap for them.

Good news for distributors: Derek Maxfield and management are still in tact, and the cosmetics management company is in social networks still thrives with their 19 lipsticks and 39 moisturizers.

Younique has exploded in Utah in the past few years, bringing beauty home parties to the market for women who want initiation. Powerful messaging that works.

# 2. Jeunesse

Another winning product line is here. Jeunesse products work super, super well. Even MLM cynics have to love a product that gets rid of wrinkles:

People will always want to look younger and the instant ageless cream continues to excite.

They were the #1 fastest growing direct selling association on the Inc 500 and poached by Alex Morton in the months before Vemma left in 2015. SavageAF?

A trend and a product that works really, really well? This is a rare occurrence in network marketing.

# 1. doTERRA

A recent third party study (13) found that 9 out of 10 people living in the Eastern US have never heard of "doTERRA".

Translation: they are ready for exponential growth.

DoTERRA has been cultivating in Utah for some time (33% of consumers in the Rocky Mountain region), but now people around the world are becoming strangely addicted to the use of essential oils.

Capitalizing on millennials who love to walk "all natural," doTERRA is buzzing from church parking lots to your married, twenty sister Instagram sisters. After only five years in business, they landed a $60 million headquarters seat in Pleasant Grove, Utah.

Dope by Young Living, doTERRA started much later (2008) and manages to have some momentum.

Outcome: they are the clear leader in the essential oil market (a trending, marked niche) making doTERRA my #1 MLM choice of 2017.

Summary:

Look, honestly, I applaud anyone looking at network marketing companies because it shows that you are trying to do something about your current financial situation.

It's hard to knock.

Now, should you join any of the above companies? Short story A: MLM is a job for many, but not for most.

Network marketing companies tend to have good intentions, but the industry has flaws.

Lemme explain some of it:

1) Low entry barrier

Just: companies choose the multi-level marketing model because MLM companies are cheaper to start and run cheaper. By outsourcing this work to a distributor, the company saves $1,200 per employee annually.

You now have thousands of trained marketers supporting a hot trend and eventually becoming "middlemen".

2) Artificial supply and demand

Simple: Network marketing companies get into trouble when most of their sales come from new recruits rather than external clients.

The FTC keeps going and following these companies (Herbalife, Vemma). If you have to buy a bunch of product to join MLM, that's a problem. It's called production frenzy.

Think about it: why are so many more MLM companies mysteriously re-launching or re-launching? It's all about new registrations.

Obviously, there are always exceptions, but these shortcomings apply to most network marketing companies.

Ask yourself an uncomfortable question:

Am I pretending to love these overpriced products to hide the truth, meaning am I selling a money making opportunity? Moreover, statistics say that this is almost always the case!

Too honest?

And yet there is a wayyyyyyyyyy better ways quit your day job and live a good life.

Alexander Ivanov

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

It was born in 1963 and, hard to guess, was named after its founder.

The catalogs offer high-quality cosmetic products and are in great demand among Russian consumers.

Back in 2012, the organization took the honorable 6th place among international companies for direct sales. And this is worth a lot, given the scale of statistics.

The peculiarity of this MLM company is high level preparedness of sales agents.

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

Location 6. Oriflame

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

Back then, catalogs offered only one product line, while today the range includes over 1,000 perfumes and cosmetics. The turnover is 2 billion dollars a year, and there are more than 3 million net distributors.

A feature of the company was the position of an environmentally friendly manufacturer.

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

To demonstrate its firm position, the company even publishes catalogs using materials from artificially grown forest plantations.

Location 7. FABERLIC

And finally, the last favorite of my rating is ours Russian company. Its founders were our compatriots entrepreneurs Alexei Nechaev and Alexander Davankovy.

At first, the company was referred to as "Russian Line", but in 2001, apparently deciding that this was not solid enough, it was registered as Faberlic.

To date, the brand has expanded to 20 countries, including Germany, Poland, Hungary and Romania. Faberlic considers developments based on perfluorunlerodes, that is, a collection of oxygen cosmetics for facial skin care, to be a unique “trick”.

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

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

Among these, I include Cashback service Switips, the benefits of which I wrote right here on Telegraph.

I was glad to provide up-to-date and informative information and I really hope it will be useful for those who are interested in the direct sales system in MLM companies.

Stay with me, subscribe to updates, including the Telegram channel t.me/site and I promise to replenish the blog archives with fresh, and most importantly, necessary information.

P.S. I recommend paying attention to free training on Cold contact automation, which will help you create a System for attracting partners to your team on full autopilot online.

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

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

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

What is attractive MLM business

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

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

In network marketing you can:

- have a free work schedule;

- get by with minimal financial investment;

make a career;

- create passive income;

- transfer the contract by inheritance or sell.

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

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

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

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

Network marketing today, like any other business, requires a reasonable approach and a clear plan of action. And one more thing: if abroad the times of judgments over network companies gone, and the business has become completely legal and profitable, then in Russia the possibility of encountering fraud still exists.

Network marketing as a type of business is gaining new heights. However, not everyone knows him well - some trust him and are happy to cooperate with such companies, while others try to stay away from MLM trading and sincerely consider it a swindle and a "pyramid".

Network marketing and financial "pyramids" - similarities and differences

The second category of the population is only partly right - the principles of network marketing actually resemble financial "pyramids". It lies in the fact that in order to make a profit, it is necessary to attract other people. However, this is where the similarities end.

Simply put, in the second case, you can bring as many new participants as you like, but if they don’t buy anything, then the income of the “agitator” will be zero.

With the first option, the opposite is true - the client receives a percentage of the contributions of newcomers. In this case, the amount of the initial payment is usually very significant and can range from $100 to infinity. The participant most often does not receive a real product or acquires something that does not have a high value in the real world.

How to choose a company for cooperation

For those who decide to start a career in network marketing, experts advise choosing the right company for cooperation.

Here you need to pay attention to the following factors:

Training and informing consultants

For a beginner, it is very important to have the opportunity to attend various trainings, consultations with more experienced sellers. Many companies offer step systems training, allowing everyone who wants to quickly move up the career ladder. In addition, MLM organizations often offer educational and promotional materials.

Company reliability

There are two ways here - to choose a start-up company or a company that has already established itself in the market. In the first case, you can be at the very origins of the business and have more possibilities to attract new customers and get "fast" money. But here the “pitfall” is the new name of the company: firstly, no one knows the quality of its products, and secondly, it can quickly cease to exist.

In the second case - to go to work in a reputable company - there are also pluses and minuses. On the positive side: the products of this company are already known to the consumer, so they sell better. In addition, it is unlikely that it will fall apart in the next few years. But there are also disadvantages - such companies already have enough distributors, and competition among them is high.

Manufactured products

It must meet the following requirements:

high quality and environmental friendliness required condition! After all, network marketing is built on the principle of "word of mouth", and in the event that the buyer was dissatisfied with the quality of the purchased product, he will recommend to his friends not to use it;
a wide range - in this case, each buyer will be able to pick up something special for himself and his family. How many advisors can be successful trading only two or three positions?
affordable prices - they should be such that 95% of the country's population can afford to purchase this product;
not very long validity period - this is necessary in order for the client to purchase as often as possible this product. If the product has a validity period of several decades (for example, dishes), then the distributor will have to constantly be on the lookout for consumers. The ideal goods for trade are cosmetics, household chemicals, perfumes, hygiene products,.

Company rating

Continuing the topic, you can casually notice that a company for cooperation is chosen based on its financial indicators. And this is logical - the more sales the company has, the better the demand for its products from consumers, the more stable it develops and grows faster.

The rating for 2018 is as follows (in billions of dollars):

Amway - $9.50
Avon - $6.16
Herbalife - $4.47
Vorverk - $4.00
Infinitus - $2.88
Mary Kay - $3.70
Perfect - $3.58
Natura - $2.41
Tupperware - $2.28
Nu Skin - $2.25
Tiens - $1.55
Primerica - $1.41
Ambit Energy - $1.40
Oriflame - $1.35
Belcorp - $1.20
Telecom Plus - $1.17
New Era - $1.16
Jeunesse - $1.09
New Avon - $1.01
Young Living - $1.00

In Russia, there is a Direct Selling Association (DSA), main goal which is the development of the network marketing industry. She is also involved in protecting consumer rights and monitoring compliance with ethical standards in doing business.

This association includes only 21 MLM companies out of many firms operating in the country:

Senior members of the APP:

Amway
Herbalife
Mary Kay
Oriflame
Tupperware
Tiens

Active members of the APP:

Jafra
Coral Club
Mirra
Morinda
Nu Skin
Tentorium
Faberlic
Florange
Associate Members of the AMS:
Accord Post
AlliancePrint
filuet

Based on these data, you can choose an excellent company for cooperation and start, albeit small at first, but your own and reliable business.

Before I tell you how I was recruited into network marketing, you just have to watch this humorous video about MLM presentation, you will be rolling on the floor holding your stomach 🙂

How I was recruited into network marketing

The call from a friend came unexpectedly. After graduating from the institute, we did not communicate in the same way, and this usually happened when we came to our hometown to visit our parents. The metropolis in which we lived at that moment was very large and the rhythm of life there is such that there is simply no time for visiting.

But despite the unexpectedness of the call, I did not have any leftist suspicions. Sasha asked how things were and offered to meet. He didn’t voice the purpose of the meeting, and it didn’t interest me, my mind thought out everything that was needed on its own - let’s get together, drink beer, chat about life, politics, women (everything is as usual).

It’s good that I didn’t take a beer with me 🙂 A surprise was waiting for me on the spot.

In the odnushka, which became the meeting place, a crowd of people unknown to me (10 people) gathered. Several were civilly dressed - in suits. Since I was a little late, the celebration was already underway without me. Only instead of a cheerful feast there was a serious presentation with washing powders and miraculous preparations for washing.

It turned out that there is a recruitment of volunteers in network marketing. I didn’t know what it was, but I was late for the main part. As a result, I was destined to listen to the presentation individually in the kitchen. In principle, I liked everything, in theory I was supposed to become rich in 2 years.

As you might have guessed, it was about Amway. Later I found out that 99% of my acquaintances already know about it and no one was going to go into business with me. I was one such "dark" that in my 25 years did not know what network marketing is.

My wife was against it, but the idea hooked me and I started.

Summary of the first experience

In short, my plans to conquer the universe were not destined to come true. Honestly worked about 100 friends, as recommended by the sponsors. The result - some of the acquaintances stopped picking up the phone, several people signed up to get behind.

I can’t say much about the products, I have no complaints, I used a lot of things, but I’m not an expert, my wife said that it’s normal, the price tag is about the same as for similar cosmetics in the store.

Everyone attended training events, but apart from “cheers” motivation there was nothing sensible there - the same thing, without specific recipes and tricks effective work.

Conclusions: Despite the assurances of sponsors, it turned out that Amway has already completely trampled the Russian market and took everything it could - the influx of new people is equal to the outflow of old ones. In chocolate, only those who came a maximum of 5 years ago (before the official opening).

Second experience

Despite my failure, I did not blame anyone - this is a business, there are no guarantees and everyone decides for himself whether to take on it or not.

I didn’t want to take on such things anymore, since the trade in cosmetics and powders is not mine. But I accidentally stumbled upon the ISIF project. Liked:

his niche is education in the field of finance (a topic that was interesting to me)
the people representing him did not pull anywhere and it was interesting to just communicate with them
the project was new compared to amway
use of modern technologies (Internet)

It so happened that no one pulled me there, I wanted to. It turned out well - it was really my project. For a year and a half, I got a check of $ 1,900.

But not everything is so smooth with new projects. Financial education does not have such a wide consumer audience as cosmetics, and the company as a whole could not reach the turnover necessary for profitability - the project was closed.

In network marketing, there are no restrictions on age, gender, or religion. that is, theoretically anyone can succeed. Moreover, the speed of your development will not be greatly influenced by diplomas of education, but your skills related to sales, people management, marketing, psychology and other areas related to business can have a significant impact.

Concerning, Special attention when training this profession, it is worth paying personal growth and the art of communication. Technical skills go by the wayside. They will not bring harm, but they are unlikely to determine the level of success.

Why come to network marketing?

Most often, people come to network marketing for money, but usually stay for other reasons. This environment, this opportunity to travel, this free time, this feeling of self-sufficiency and constant growth in personal terms. Gradually, money fades into the background, although it is an indispensable attribute any business.

Everyone who was able to reach the first income from MLM realizes how much more pleasant it is to receive passive than from work for hire (even with more high salary). There are no bosses, no duties, no reference to time and place of residence.

Naturally, every new distributor has their own motives for starting a business, but over time, everyone has a few common elements. First of all, this is the desire to help others succeed, those who believed and went into this industry after you.

What are the costs to get started in network marketing?

If you look at network marketing as a business, and that is how you should look at it, then you can start creating your own business for mere pennies. no need to open an office and rent warehouses, no need to pay salaries to sellers, couriers and loaders.

All that is required of you is to conclude an agreement with one of the companies and pay the mandatory entry fee for the right to use trademark, for servicing your accounts, etc. (in big business this is called franchising). In different companies, the amount can vary from a few dollars to several hundred, but in any case, you can start much cheaper than in any other traditional form business.

Expenses can be divided into the following groups:

Purchasing products for personal use
Purchase of products for resale - these funds must be returned in an increased amount, since end customers pay more than the purchase price. On the initial stage this is the main income in business, which must cover most expenses.
Tuition costs - this includes educational materials for self-study(books, CDs) and the cost of attending training events (seminars, trainings)

When will I earn my first money?

Unfortunately, network marketing is not a job and there is no salary. You will receive the first money when the first volume of goods or services is delivered to the client on your recommendation. It will take someone a few minutes, someone a few months (there were cases that it took several years, but this is rather an exception).

To speed up the moment when you start earning, start developing your skills. Sales - for personal promotion, presentations, to attract new distributors, training - to effectively build a structure in depth.

As soon as your level of development becomes in demand, the market will immediately respond with an increase in your income.

In forming the income of a distributor in this industry leading role plays the human factor, which cannot be estimated in exact numbers, one can only give general forecasts based on other people's experience. These predictions can be very far from the reality of each individual person.

Hi-tech

With the advent of the Internet era, new opportunities for business development have appeared. Now, the Internet allows you to significantly speed up the construction of the structure. Although, despite the many advantages in modern technology, there are also a lot of disadvantages.

The main problem that prevents the promotion of network marketing on the Internet. It's about trust. In the traditional model, most of the partners who come to the team are friends and acquaintances. On the Internet, by default, there are no trusting relationships, since deception can be hidden behind each offer.

In addition, building a structure over the Internet is very difficult to scale, since most of them have a limited resource and cannot simultaneously accommodate tens and hundreds of thousands of advertisers. The introduction of the Internet model in the network business leads to a rapid increase in competition and an abrupt increase in promotion prices.