Network business MLM. What if you are still interested in network marketing

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System for building large structures in MLM business. Information from practitioners! Jim to find out ...

Irina Davydova

Reading time: 12 minutes

A.

The term "network marketing" involves the distribution of goods or services with the help of a well-developed and branched network of distributors (approx. - Independent representative of a certain company).

Is cm (network marketing) "Pyramid" What are his pros / cons, and how does this system work?

How Network Marketing works - its pros and cons

What is the essence and what is the scheme of the work of network marketing?

The essence is simple: A person sells goods and invites to a similar position of other people whose sales he gets interest. The more it will lead sellers, the higher his earnings. Thus, a large network of sellers working for one organization is built.

The work scheme of most network companies is usually the same (with minor differences in individual companies).

• On the interview you are talking about the prospects of work And "huge" opportunities (usually overestimated possibilities or greatly exaggerated). For example, the solid income in the first six months of work.
• After registration you may be offered to make a membership fee . It is worth noting that solid network companies use exclusively legal schemes and no contributions require.
• Next you are looking for and attracting new sellers to work. which are registered already through you. This is the main feature see
• Profit (the difference of purchasing and selling) you come after the sale of goods, Which, as a rule, have to buy out for your money. The profit also enters as percentage of sales of people attracted by you.

Network Marketing - Benefits

1. Saving money on advertising. The products of the network company are advertised mostly through the "Sarafan Radio" - direct contact of sellers and buyers. Due to the economy on advertising, the market price of products is reduced and the income of the distributor increases.
2. Acquisition of efficient and high-quality products Inaccessible in ordinary stores.
3. The possibility of part-time or full-fledged work with a good earnings.
4. Free work schedule.
5. The size of earnings depends directly from the invested time. , human abilities and striving for high income.
6. Opportunity for your own business. True, not immediately, and after you gain people, teach them and unwind your own set system. And without investments, of course, it will not cost. The question is only in their size.
7. Help professionals. As a rule, in each network company, together with the products, a person also receives a personal "Guru", which helps him, teaches, instructs.
8. Lack of age limitations. It doesn't matter, only you are 18 or you are retired - everything can earn money.
9. Not required diploma . Instead, it will be necessary for such qualities as sociable, ventolle, etc.
10. The presence of a "enhancement" system (career growth).
11. Not necessary

Network Marketing - Disadvantages:

1. Intability earnings. Especially, at first, when the work will remind part-time.
2. Material investments. It's unavoidable. Even if you say the opposite, taking into the ranks, see The size of the investment will depend on the situation, the company, the goods. Plus: Attachments always pay off.
3. Selling goods - not as easy as you think initially. While you do not find your way of effective sales, you will scream a lot of negative emotions.
4. Not everyone will be successful. This item follows from the previous one. Much depends on your capabilities, abilities, experience, trainee. Someone will be successful, someone will leave this opportunity for a part-time, and someone will leave at all, strain through the teeth - "nothing will earn nothing here."
5. You will work in business, but you will not become its owner. Why? Because the products that you sell, you do not belong. You will not be able to sell it as your own - for this you will have to develop your product and open production.

Interesting work or financial pyramid?

Is it worth afraid of work in the network company? What is the difference from the financial pyramids?

It is worth noting that I do not have anything to do with the notorious "pyramids". The cm reputation was prettyly retained, "thanks to" to the chains that successfully mask their companies under networks.

How to distinguish a network company from the financial pyramid?

Signs of "Pyramids":

• The idea is to attract a large number of people to assemble the pyramid in the piggy bank maximum money and disappear.
• You get profit for each person invited by you, who brought money to the pyramid.
• The goods of the company (services) cannot be implemented on the open market.
• Consumers of products (services) - only distributors.
• No investments will not cost. The size depends on the scale of the pyramid. And for their own money, you do not buy a real and high-quality product, but pacifiers, at best, simply do not harm. And in most cases you give your blood for "membership fees" or some "papers", having value exclusively inside the pyramid.
• The absence of any printed materials.
• By investing money in the pyramid, you get exclusively promises that "already soon" you will become rich-rich.
• In the pyramid teach to deceive.

Signs of legally working networking company:

• The idea is to attract a large number of people to increase the company and increasing the earnings of distributors.
• You get interest from sales of people you invited to work.
• The goods of the company can be freely sold on the open market.
• Product consumers are ordinary buyers and distributors themselves.
• Attachment - only for the goods you buy and then implement.
• Printed materials are usually present. At least, catalogs of goods.
• By investing money in cm, you get high-quality goods and interest from the sale.
• In cm taught to sell.

The most popular examples of business built using network marketing

The first of the first in the CM became the company that appeared in the 30s in the last century. They were engaged in food additives and implemented only one product.

The most successful company in cm became started in 1959 Amway.. One of the first it went beyond the borders of the sale of the "1st product", expanding the range of food additives of home consumption goods.

Probably, the majority of our readers at least once in their lives have to be engaged in search of additional earnings, and even the place of main work. And this happens not only with young professionals, which has just left the walls of the educational institution. Work or part-time job is now looking for everything from schoolchildren to pensioners. The reasons are different - someone lacks money for the satisfaction of elementary daily needs, someone wants to accumulate on an expensive car or apartment, young people living with their parents seeks to receive, at least minimal financial independence.

Searches for options, as a rule, begin with examining media and sites that place vacancy announcements. Experience shows that valuable offers there almost does not happen. And on some we just do not pay attention, considering that they are not worth it. This discharge very often includes ads on network marketing. Attitude towards this lesson in our society is very ambiguous and mainly negative. Epitts like "Lochotron" and "Divorce" are not the most tough in relation to MLM (abbreviation of the English term Multilevel Marketing, which "in our opinion" means "multi-level marketing"). But is it all sad in fact?

We all are adults and understand what you can do some conclusions only after studying the issue. At the same time, many of us sin with unreasonable estimates of one or another phenomenon inspired by other people's impressions or someone else's experience (no matter, negative or positive, but foreign). It seems that network marketing has become a victim of such an assessment, although many do not even understand its essence.

If in a nutshell, then it is just one of the ways to promote and sell goods, which has any other, its advantages and disadvantages in which we are and we will understand today. The whole scheme is carried out using a large number of people forming the network. Information about the product extends from a person to a person, there are no intermediaries, wholesale buying goods and resell it already at an overpriced price, and there is no expensive advertising. The value of these factors is explained by the example.

All you know the chewing gum "Orbit" and at least approximate how much it costs in our stores. So compare - the cost of production of one packaging (10 pads) is equal to a maximum of 50 kopecks, and we buy it hundreds of times more expensive. And all because, before entering the counter, it passes through the hands of several wholesalers, each of which makes his markup (the manufacturer, naturally, also lays its). Add a lot of money on advertising in print media, on the streets, television advertising, and get a digit from the store tag.

MLM is the same as a system of direct sales, devoid of all these jets, so the goods in such networks are often cheaper than in the outlets. And not because it is a fake or a poor-quality product, as some think.

Earnings of network participants consists of a percentage of the value of the product and award for attracting new people. That is, to engage newcomers to the network is profitable, but the process is not simple. Here you need to be a little psychologist and be able to unobtrusively convince, denied the sense of this sales technology and the pros inherent in it.

By the way, it is with such an unpopular phenomenon as financial pyramids, many and compare MLM network. All this comes from misunderstanding the sales mechanism. But one thing is that network marketing does not require the investment of large funds and does not promise instead of the fabulous ladies for anything, it should make it necessary to make a "scam."

Here, to achieve something, you need to work a lot on creating your own clientele. And not always profit comes immediately, for a while, perhaps you have to work. But in any case, your efforts will bring their fruits, and after a certain period of time you will start receiving income. If you connect to a large network, you should not count on a huge income, but an additional 20-30 thousand rubles per month you can definitely earn money.

True, not to burn, you need to be able to distinguish a real network company from the pyramid, which is masked for it. Therefore, we advise you to take into account a number of moments before becoming a member of such an enterprise and attract friends and acquaintances into it:

1. First, the 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 a product of the site, you will work only with products already ordered by your customers, and pay them on the day of receipt from the warehouse.
2. Secondly, you should alert the requirement to pay membership fees or buy some "valuable" papers, which actually have no price outside this structure. You will not pay for the amount of product implemented products either. You will be rewarded exclusively for the number of attracted members who have already paid for the very membership fees. If everything is the way we described, you got on the financial pyramid and linger there.
3. And finally, thirdly. There are companies offering to implement any equipment or software, but requiring pre-lay a certain amount for a certain service package without which you cannot work, as well as attract a couple of new participants. The mini-network that the participant creates in this way and becomes the source of its income. Such schemes look, honestly, doubtful, although, fairness, it should be noted that the product for implementation in such companies still has. But it is almost impossible to climb the career ladder here, even possessing the skills of a psychologist, having leadership qualities and oratorical talent.

That is, the conclusion from the whole voiced above is obvious - to engage in network marketing and achieve success in this case, you can only if the terms of cooperation are clear and transparent, and there are no moments of doubt.

1. Let's start with the fact that the MLM system makes the cost of goods (services) are significantly lower for the buyer, since the cost of advertising and charges of intermediaries are not laid.
2. The goods are delivered to the consumer in a short time due to the fact that Logistics and in different regions (cities, countries) is well thought out in different regions (cities, countries), the company has a network of warehouse.
3. The fakes and substitution of the product are excluded, which is possible in the process of numerous resale. Network companies directly go to the end user and here are almost excluded here.
4. Employees occupied in multi-level marketing have a strong motivation, both in terms of the possibility of high earnings and from the position of building their own business.

Sales' income consists of a percentage of sales, but not only. They can also attract new people to work and receive remuneration for contributing to the extension of the network (from here and the name of marketing - network). Each network participant may over time by creating a wide customer base, to establish its own small network business. The MLM system is beneficial to all parties - both the manufacturer, and the consumer, and sellers (distributors).

For the manufacturer, this is a real opportunity to save on advertising without prejudice to product popularity. The consumer is pleased with fast delivery, guaranteed quality, relatively low prices, the availability of probilities and catalogs, and the opportunity to acquire sometimes those goods that are not on store shelves.

As for distributors, they will have the opportunity to build their own business without a large starting capital, in the already trained market (after all, the main network companies are universally known to the population) with a built-in sales system. In addition, they have the opportunity to get the necessary knowledge for free, since MLM companies pay a lot of attention to learning and mentoring.

That's how it would seem, everything is simple. But then why many people who tried themselves in this business suffered fiasco and consider him nothing more than fraud? Most likely, they either did not show the necessary perseverance, or they simply do not have quality, without which there is nothing to do in network marketing.

It must be recognized that the occupation of the network business is not suitable for everyone. And not because someone is bad, and someone is good. It's just this work, as, however, any other requires a certain complex of qualities, without which it will be very difficult to achieve success, and it is generally impossible.

As a rule, people who do not accept the hard framework of work "from call to call", creative, communicable, persistent and seeking to build their own financial independence, can be moved to the highest steps. They depend solely from you if you know how to put goals and persistently go to their achievement, you know how to communicate with people freely, you have a gift of convictions and psychologist's deposits, and strive to constantly increase your education, 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 have not achieved results on this Niva saved at the initial stage of work. This is not the job where, what would your progress, the lost salary will also pay you. You need to be ready for some time to work on future results (not even receiving profit), create a client base, master the subtleties of the profession. But over time, your perseverance and your patience will definitely bring their fruits that you will surely delight.

Start, of course, with the choice of a network company. There are different options here - you can connect to the company with a name, well-known people, where there is a well-established developed distribution network. The product of such a manufacturer is easier to sell, because people know him and trust his quality. But there is here and the reverse side. It is that in such a network you will find yourself very far from the top, it will be difficult to advance, and your income will not be so high.

Another option is to join the newly created company. Difficulties in this case will suck you from the very beginning, because you will have to convince people to acquire an unfamiliar product from a little-known manufacturer, and for such a step, buyers tend to go reluctantly. But with time when the company will create a name to himself, you will find yourself on the upper steps of the pyramid, and you will have an appropriate profit.

However, whatever option you choose, first of all pay attention to the payment system and bonus program. The profit scheme should be understandable and transparent, penalties should not be present, and the employer's requirements for sales should be actually fulfilled.

Deciding with the choice of the company, think about the method of obtaining income. It can be direct sales, and may be the receipt of passive income from bringing new participants to a network.

Most often, newcomers begin with the sale of goods and this, in principle, justified. By selling sales, they get the opportunity to get used in a new niche for themselves, explore the market and create customer base.

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

When it takes a certain time, and you will work well on creating your chain of distributors, from sales it will be possible to refuse or do it much less. After all, the main profit you will receive from our subordinates.

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

1. From a positive point of view, it is worth noting the opportunity to buy high quality products cheaper by a third, or even more of its "selling" cost, that is, the price you voicate your customers.
2. The second plus is the lack of need for investment in business of own money as a primary contribution (membership fees), of course, if it is a legal networking company, and not disguised pyramid.
3. It is impossible not to mention and the possibility of free learning. As a rule, the company, taking care of increasing sales and expand the network, do not spare time and money for familiarization of distributors with their products, effective techniques and sales rules, ways to build their own business to obtain passive profits, etc.
4. And finally, with the appearance of the opportunity to conduct such a business through online services, distributors have no need for customers to stop people on the streets, come home to them, to offices, etc. Now you can work remotely.

Of the flaws, 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 that came earlier.

You can still say a lot about network marketing, but we set ourselves the task as simple as possible to explain the essence of this phenomenon and give you the opportunity to navigate how much such work is consistent with your needs and features of your character.

I would like to hope that now you can make a decision on participation (or non-participation) in MLM on the basis of your own conclusions, and not guided by the reviews of former unfortunate distributors. Good luck.

Why did I choose precisely the warning name for the article? Because, unfortunately, I have recently come across the planic stories of people working in network companies and having the same deploys of this work itself.

Network marketing (or multi-level marketing; eng. Multilevel Marketing, MLM) - The concept of the implementation of goods and services based on the creation of a network of independent distributors (sales agents), each of which, in addition to the sale of products, also has the right to attract partners who have similar rights . At the same time, the income of each network participant consists of commissions for the sale of products and additional remuneration (bonuses), depending on the volume of sales committed by the sales agents involved by their accurant.
Network marketing originated in the 1940s. The dawn of the network of network companies fell on the 80s, 90s. One of the industries of the industry has become a notorious company American Way Corporation (Amway).

Myth number 1. Network marketing is my business.

Do you seriously think that this business is yours? And if you think well? Thought? Not! Network marketing in 99.999% of cases is not your business. Network marketing - business only those (very smart and enterprising) people who have established it. Point. This is the business of those people who come to you in the workshops of the company once a year and utter motivating and "grandiose" speeches from the scene.

What is the problem here? And the problem is that those beginners who come to the network company from the very beginning "explain" what he will do business. Yes it is. But not all newbies clearly clearly, whose business they will be engaged. Understand, business is yours only if you have the authority to take key decisions about its reference. Can you make such solutions in the "your" networking company? Can you change the price of products? Can you change the range and suppliers? Not. You only resell the products yourself either through the new sales agents attracted. You are forced to obey and comply with all the conditions and rules for doing business, which the founders dictate you. Even if you have registered an entrepreneurship or a company and sell the products of "your" networking company, you have a very limited freedom of action in contrast to a full-fledged entrepreneur.

Understand if you work in a network company, then this is not your business. In this case, your activity can only be called an alternative to the work "On Uncle" and Self-Challenge, but not a full-fledged business, in the true economic sense of the word.

Myth number 2. In network marketing, big money is spinning and you can quickly get rich there.

Of course, the best option is definitely trying and look at the result. But, as long-term practice shows, there are no big money in network marketing. Sometimes there is no money there, not that big. How so, because network companies receive billion profit? Yes, get. Founders and those who lead these companies and personally close to the leadership. Conventional mortal distributors are satisfied with small checks, barely allowing ends with ends. You may argue, they say you can become a leader! You're right. You can fly into space. The whole question is which "no" is not going "on the way to this space, who will not lose consciousness and how much to fly to this" cosmos ". And in general, do you need this cosmos?

All the network company worker does are a search for those who would sell more and those who would sell more and who would look for the same.

People engaged in network marketing (may they forgive me) are just mediators. Just intermediaries. Of course, intermediaries can sometimes earn money, but the main profit receives the owner.

There are no big money for an ordinary distributor in network marketing, there are simply no them there. All Golden Mountains that your "mentors" and leaders are drawn - farce and clean water motivation with profanation. It is very difficult to get rich in network marketing. I will not say that no one has made a state of self-selling detergents, toothpastes or superhrenoresok, but those pictures that you draw are radically and sharply different from harsh reality.

Perceive network marketing as an alternative to normal operation (and then carefully), as an additional source of income, but not as an easy and short way to wealth. I repeat, of course, there are people who are distributors broke into the leaders and made themselves a fortune. But these are hard, unceremonious people with severe leadership qualities, these are people who have been fire, water and copper pipes in this matter, putting a good part of their lives on him. Such "lucky" one per million distributors. Want to try happiness? That's your business.

Myth number 3. My mentor is my friend, he will help me in everything, he will teach everything and explain everything.

Hell no! Already who is who your mentor is definitely not your friend. Friends do not strain each other from month to a month constantly recalling that it would be necessary to make qualifications this month and purchase three more and a half super-reversal of the future, they may need it. Friends do not receive material benefits from friends, at least good and true.

Your mentor is the one who is most interested in your success, spoken by eloquent people in seminars and meetings, he will teach you and direct. So it is so, but what is the problem in this situation? And the problem is that the wards begin under the oppression of their "favorite" mentor (which, by the way, has long had to be sent to the dense forest) to make actions contrary to the actions of a person in the light of mind and good health. Such wards are beginning to take loans, to climb into deadly and irreversible debts, they begin to accept their own and not their brains. This often leads to very unpleasant consequences that have to rake by the wards themselves, already without "help" of mentors and leaders.

In general, in our life we \u200b\u200bare under the constant influence of other people, we want it or not, and very often in our actions and decisions there are no awareness. In network marketing, dependent on someone else's opinion distributors, listening to the motivation of the mentor and depending on his painted pictures of the Golden Mountains lead their lives under the slope (in a very bad case) without suspecting. This is sad.

Your mentor can be a good person and he can really be your friend, but it is in very rare exceptions and only if he is not very interested in your results in a network company, respectively, as its own. Understand, the boss will never lead true and sincere friendship with subordinates - it is nonsense and this contradicts the business.

Mentors, seminars, educational and entertainment teams in network marketing - their actions for the most part are aimed at washing the brains, to hold distributors in the company and to increase the company's profits. They wanted to do with you, on your life and on your problems. Remember it. The first leaders of the company will never share with you by the innermost knowledge of which they possess, as they are not interested in your growth to their level. They give you exactly the information and the knowledge that is needed to increase sales, no more. They are not interested in your true growth and disclosure of your potential.

Let's sum up.

Of course, there are no little positive moments in network marketing. Working in network companies a lot to learn a lot, is a great school sales technician and studies a bunch of interesting things. In the process of work, it can drastically (perhaps for the better) to change his lifestyle, can start traveling if it did not travel before that, communicate with interesting and successful people, can open himself from the new side and so on. The advantages are definitely. But it is not necessary to rely on the MLM-company as if it is the only worthy lesson that this golden lived and some unknown Klondike.

I repeat, you can consider work in a network company as a means and a starting point for disclosing your potential, as a sales school, a school of communication and interaction with people. But those myths that you read above should not forget. As one good man and Cauche, Ildar Zinurov, says: "There is no happiness in the network business."

Yes, in network marketing you can make money on life, you can learn, you can travel, working by a distributor, but of the happiness that you speak the first and subsequent presentations there is definitely no.

We often take the desired for valid. You need to look at the results and draw conclusions. You need to use such a precious tool as thinking. Use it! Think your head. Believe in the facts and results and not the words and pictures of your mentors and leaders. If you already have several (and then dozens), nothing changes, it is not prudent to believe that and then making the same thing (for example, saving in a network company) something will change something and you will begin to row money to the shovel. Do not start.

P.S. Who am I so, what would be this way to talk about work in network companies?

I am directly related to work in network companies. I had the happiness to work in a distributor of Chinese goods, and in not the most simple version - with a bag of uproinders of thundering by organizations. Engaged in cold sales. I think it is the most aggressive and severe form of network marketing. I had a sales system, as in all such companies, was a mentor (and not one), there was a bunch of "washing" of my then more virgin brain and so on. I passed through all this and understood (fortunately pretty early) that this is not my business that mentors are not friends, and that not everything is so sweet, as they tell me. Plus, I have many familiar and loved ones who are somehow engaged in network marketing (some more than 10 years). So I'm more than know what I'm talking about.