MLM business development. Network marketing or MLM: what is it, how is it made and how dangerous it is. How to distinguish MLM from a pyramid scheme

Greetings to you, dear friends, on the blog about earnings site... Recently I met with an old acquaintance of mine who is actively involved in the network business, or rather, was engaged and tried to bring me there. Now he, like many, has already abandoned these hour-long gatherings and constant rushes from one conference to another and returned to the usual traditional business in the field of sales. I then asked him why he did not become such a rich and successful businessman, about which he was so restlessly shouting at every step. To which he simply brushed it off and said that he was just unlucky.

As you understand, today I want to put everything on the shelves and tell you what it is network marketing, and why someone there is rowing money with a shovel, while someone cannot earn even a few thousand rubles, and even with all this, they also lose their hard earned money.

Modern life dictates its own terms, and having money in your pocket decides a lot. Each of us wants to live very well and have a solid income, but how not to get to scammers and not be left in the fools?

What is the essence of network marketing?

So what is network business or, more accurately, network marketing? This type of business does not mean actively promoting a product or service of any company through radio and television, but the main emphasis in this business is on attracting people who are ready to do whatever they want for money, as they say, to sell their souls to the devil.

MLM (network marketing)- a way to sell a product or service by selling it through independent partners (distributors).

I myself was personally present and began my development with such network companies as Tellme and Intway.com, the second interested me more, as it was interesting in that it was based on making money on the Internet, it had its own stock exchange, and a website builder, and everything like that. To date, this company does not exist, since employees of the Ministry of Internal Affairs came in large numbers to their offices and closed the shop. Can you imagine the faces of those people who invested their money and energy there, and in the end, dreaming of themselves only with dreams of a happy life, lost both money and nerves.

Yes, I will not hide that when I started doing this business, my eyes were just burning, and I was soaring with happiness, believing in a bright future and even going over in my head what I would do when I earned my first million in this business. I actively invited people, including all my friends and colleagues, someone walked, and someone sat on the priest level and was afraid to try something new. Over time, my ardor, like the activity of many participants, began to fade, and it was like how people washed their eyes after the powder got there, and many saw their sight and began to think where their money was.

The most interesting thing is that in none of such network business you will not sign any documents, more precisely, they give you a product and send you to sell, thereby making you a simple volunteer who will sell and advertise other people's products at his own expense. Isn't it a paradise for companies? Get big on sales, shoot a video against the backdrop of expensive real estate and cars and tell people that they will soon get rich and even push your product at their own expense, cool !!! And to be honest, let's look at such offers on the Internet. There are thousands of them, now almost every second is engaged in this, and when you ask them about money, they will start scratching your ears that you need to work even more and invest more, in short, there is a zombie of the people who want to get everything at once, without making any special efforts and without developing as a person.

Many may say that I'm talking garbage, but believe me, I went through all this myself, and not only me, many of my acquaintances and friends, and many have become former friends, both to me and to each other, since the main point PR for such network marketing companies is based on attracting people and their friends and relatives, who are so-called business packages, which include an account in some system, and somewhere they just give you status, and on this all. But before you start doing network marketing, think soberly and understand that no one will give you a lot of money for what you just want to earn and will run to agitate everyone to the seventh generation, that there they are waiting for such a lot of money, as they, and you, will soon be awesome rich after listening to a couple of workshops. Of such NEVER will not be.

Let's remember the famous pyramid for all of us " MMM", which has already been written hundreds of times and has been discussed as many. But, as I see, sad stories and the loss of money do not bother anyone. There is such a thing as herd thinking, and if you are part of the same herd of" beating ", then you are straightforward you need to go there and not even read this article to the end, because you still will not understand. Recently, the second wave of the "MMM" pyramid ended, on which they cut off part of the money, dough at the expense of others. By the way, Mavrodi himself said this, thereby revealing the essence all this business, which is covered with expensive interiors and jackets with ties.The essence of network marketing, like those pyramids, is based on the fact that people bring other people and sell them the products themselves, business packages or something worse. brains, what would you like to ask everyone who comes to seminars and spend hours studying this nonsense, guys, are you out of your mind or what?

I'll tell you using the example of network marketing (or network business), as you like, at which he was personally present. The essence is the same everywhere, most likely, one piece of paper is written under a carbon copy, so why get dirty, they still eat it, reminds me of modern Russian cinema with "asshole" humor. Well, in general, everything is quite simple, as in all such dubious companies, they sell whatever they want there, and this always happens in conference rooms, by the way, pay attention if you came to the presentation or, as I call them, "sectarian sermon ", then you are always charged for the entrance and, thus, you pay for the rent of the premises. It was killing me, because it was said that billionaires came from Europe to speak in front of future "beaters" of clients, and they could not pay the rent themselves, well, this is just tough and even ridiculous. I’m also billionaires. =))

Many people, having come to network marketing, very sincerely believe that they will bring a wad of money on a silver platter, and begin to promote this business themselves. I myself am constantly in a personal, both on social networks and on Skype, guys who offer to make a lot of money on a new "startup" that is about to launch, and whoever has time will become damn rich. I always answer that I am not interested in this nonsense, it is a pity to even spend time on this nonsense and pseudo millionaires, whom, as I see, almost every 10th consider themselves to be.

Here is one of the most popular, so to speak, business trainers in Russia and the CIS, which assures everyone that they will earn awesome money. By the way, look on the Internet, he also promoted Intway and said that it was there that everyone would become rich, according to which, as I said and you saw in the videos, criminal cases, the company disappeared with all the money of its partners. This speaker's name is Oleg Permyakov, this name is familiar to many who participated or is participating in network marketing, now he is promoting another business, "Expert Pravda", where people are also sold products for cars that reduce fuel consumption. I have one question, what does he say now to his partners, whom he promised millions, and why he sharply changes his mind and runs from one business to another.

If it starts new network marketing some company, then the main representatives are always recruited in the regions ( speakers), who are given a little money, and sometimes just out of pure enthusiasm, so to speak for food, who, in turn, gather teams and begin agitating mere mortals. Incidentally, I was brought into this so-called business by a man who wore a tuxedo, with a badge, as congressmen walk in America, and so on, and at the same time drove a rotten "six". And this man convinced me that I would be very rich, I only need to invite people and buy their "business packages".

At all the seminars conducted by network marketers, you will definitely hear about the book about making money "Rich Dad, Poor Dad" (the book is interesting, charges, there are no questions to it), and you will almost begin to retell it and draw success diagrams and levels. in which you will be now, in the future, and so on.

But if you want to start earning, you will need to buy them business package, everyone has it in different ways, maybe just a membership fee, but many are building a "cell" structure, so to speak, they also call it a "binary system", from the word "two", where by paying for your package you will invite people and build a chain for receiving commissions from their sales. In short, bring people in and try to get them a product or service of the company, and if you don't buy the products and packages themselves, then the road to wealth immediately closes for you. Sometimes I heard such nonsense that I felt scared for the future of our country, where people trust an outsider who speaks a memorized text and promises them to become rich, and he himself cannot even buy a car for himself, even if it is a booted one.

This is what happened to this fraudulent company when they became completely impudent: the leaders were even caught in the office of the Moscow office, where they were printing certificates of ownership of land, horror !!!

I have seen such things, and I am sure you yourself saw this, when almost a schoolboy teaches you by videoconference, who rubs you that he is already a successful businessman, and in the background there is an old murdered apartment. Someone will say: "Well, he has a rented apartment." Well, yes, only this situation is similar for everyone. And these people, who, according to them, have a lot of money, from which the wallet is torn, teach others to earn money without having anything in their hearts. I know what I'm talking about, because I myself know several such people. In the evening, they feel like millionaires, and from the morning they gorge themselves on a doshirak and go to work for a penny, and even there they will vparivat that they will soon become very rich.

Will Network Marketing Work Make You Rich?

Nothing of the kind, you will not be able to make a lot of money in any network business. Yes, there are people who make money, but they managed to understand this business and its rules. There are not many of them, and they were at the initial stage of its development, having managed to sell a large number of accounts (business packages) and attract a future zombie audience. I will give an example of a network business as Avon or Amway ... Yes, people there made their money, but they stood at the origins and endured everything that happened, but the point is that everyone will become rich and drive an expensive car and live in luxury real estate.

I myself, and many who come to network marketing, initially light up and try to believe that they will become rich without much effort. Ask acquaintances for the sake of interest who participated in such a business, how much they earned and how many people like them earned, they will either lie (if they are still doing it) or tell the truth.

Total 5-7 % people make big money the rest are content with meager earnings. The reason can be either a misunderstanding of the business, or their absence at the right time in the right place, so to speak, to be at the origins of starting a business. There cannot be hundreds of billionaires and millionaires in every network business, otherwise everyone will become rich and the balance will be upset everywhere. Many newcomers, having worked for several months and having received a penny, immediately leave. There are more stubborn ones who have been thoroughly brainwashed, and they hope for a bright, carefree future in the Canary Islands, but sooner or later enlightenment comes to them, and they also flee from there.

At each conference, speakers spoke before us, who said what and how to do, and if in a month or another period you do this or that, then you will become almost a regional representative, and so on. Yes, many have received this status. Once I went to pour some tea into the service room, and there, with her forehead buried in the table, a woman was sleeping, beautifully dressed, in a strict suit, I asked my acquaintances: "Who is this?" 6 in the morning and until night, conducting such trainings, which barely had time to take the subway to crash to sleep and start all over again in the morning. I am not inventing anything, but I say it as it is.

I remember very much one young couple of about 30 years old. They, I will not say that they were so chatty, simple quiet ones, doing everything that is recommended to them. So a few weeks before the abrupt closure of the company, which presented itself as a Dutch company (and as a result, the leaders were taken by the arms in Moscow), they invested all their money in the business, while selling their car for 450,000 rubles... I don’t envy them. I knew a lot of people who ran from one network company to another, and then to some other one, although they shouted that it was in that company that they would become the richest, or had already become.

Of course, everyone decides, someone likes everything, and he cannot live without it, but for those who are brought into such a business, I want to advise everyone to weigh everything and think carefully about all the pros and cons, because every coin has a downside and you can do it regret spending not only money in vain, but also losing loved ones. Of course, for those networkers who earn normal money in their business, I wish only success, and for everyone else, stop dreaming of easy money and riches that they rub in on you every day. In this article, I expressed my personal opinion based on experience, but I did not work weakly, because I also wanted to have a large bank account -))) Only it turned out to be a waste of time and nerves))).

If you have participated in similar network marketing and had some experience, then please write your stories and observations in the comments.

Read the new article about the sensational fraudulent companies, as well as tell and show list of financial pyramids of 2015 and what happened to them.

I hope the material will be useful to my dear readers and help save your nerves and money. Subscribe to blog updates and be aware of such machinations. After all, as they say, "forewarned - forearmed."

I would be grateful for pressing the buttons and reposting this material. See you in the next articles, subscribe to updates. Good luck to everyone, take care of yourself and your loved ones.

Sincerely, .

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

What is network marketing?

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

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

Today, by reading this article, you will learn what the essence of network marketing operations is all about.

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

What is Network Marketing: A Historical Background

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

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

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

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

All complicated things started with a banal approach.

Karl Rehnborg grew alfalfa on his plot. At that moment, an idea came to his bright mind:

"But what if all the nutrients from alfalfa can be converted into an edible form for humans, so that its intake can increase the vitamin tone of the body?"

Undoubtedly, Karl had a good purpose.

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

It is interesting that out of the kindness of his soul (there are no other reasons for this) Karl distributed goods just like that, without demanding any money in return.

What do you think, has there been an effect from promoting free, useful products?

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

Karl Rehnborg came to an unexpected conclusion: if a food supplement is sold at the average market price, and not just distributed to friends, there will be demand.

And hit right on the spot!

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

Renborg's friends started buying his wares. It no longer seemed to them that it was a cheap deception for one simple reason - it ceased to be cheap.

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

They consisted of a percentage of the sale of the nutritional supplement. Now, do you know how a standard network company works? And that's how it all began.

The result of the work of Karl Renborg:

• 1934 Karl founds California Vitamins, expanding the range of products it markets.

In 1934, Rehnborg renamed the company to Nutrilite Products.

The principle of operation remains the same.

A whole network of distributors of products, the so-called partners, was formed.

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

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

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

What is modern network marketing: terms and definitions

Network marketing Is one of the types of retail sales of products based on direct, direct interaction between sellers and consumers.

A feature of network marketing is the ability of each client to become a distributor.

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

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

Let's figure out the main components.

The first stage of the pyramid: manufacturer - distributor

A partner is an individual who enters into a cooperation agreement with a supplier.

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

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

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

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

Second stage: partners of the second order

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

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

Each participant, in the end, seeks to form his own structure, as it brings real income in the form of dividends from their own sales and the activities of "subordinates".

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

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

Stage Three: Entry-Level Partners

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

Work at the first or second level presupposes the manifestation of maximum activity not in the sale of products, but in the promotion and formation of our own structure.

The subtotal should be summed up:

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

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

Network Marketing - Is It That Simple?

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

The positive aspects of network marketing

Lack of a linear leadership system.

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

Close-knit team.

Each partner is interested in supporting "junior colleagues", as it brings him financial benefits.

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

Supervision is the backbone of a network business.

Possibility of continuous growth.

Another positive thing about MLM.

It all depends only on your abilities, including earnings.

A very powerful experience in interacting with people.

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

Networked business can be viewed as a platform for the further implementation of your own.

Flexible schedule.

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

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

At least in the early stages of activity.

Negative sides of network marketing

Possible destabilization of the network structure at any moment.

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

You should consider the possibility of collapse of the entire structure, as the long experience of MLM participants proves such a possibility.

Uncertain payment standards.

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

As a result, partners took loans, mortgaged property, and the company paid less than 25% of the announced amount.

It is not difficult to guess what kind of material damage the clients received.

The opportunity to get into a financial pyramid.

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

Several months pass, the structure of clients is expanding, they also make deposits, buy products.

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

The company is closing ...

In this situation, approximately 50% of the participants are left without profit.

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

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

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

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

A feature of work on a network scheme is constant responsibility for their work + training and control of partners of a lower level.

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

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

Network Marketing: Choosing an Employer

First, you need to consider the possible options for the business space in Russia.

Top 5 Russian MLM market

Network company name	Market share of MLM (%)	Description of activities
	~30	Sale of cosmetics, pricing policy - acceptable for the middle class. Get ready to meet with a huge female team, and find your place in it. Networking activities in "AVON" are more suitable for girls.
	~30	Marketing sphere - cosmetics, souvenirs, healthy food. One of the leaders of the Swedish MLM market. The advantages include increased loyalty to their employees. Working in this network company will allow you to have a small but stable income.
	8	Stability is the most appropriate word to describe AMVAY's operations. The field of marketing - from household utensils to dietary supplements. Unlike the companies mentioned above, it provides an equal chance of development, regardless of the gender of the employee. This fact is a derivative of the wide range of products offered.
	5	A company that only accepts women. Specialization - cosmetics, beauty products. One of the most experienced network organizations, but not yet widespread in the Russian market.
	4.5	Large manufacturer of natural cosmetics. On the Russian market, it is one of the most progressive companies with a strong base for network marketing.

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

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

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

Network marketing evokes a subjective attitude in every reader.

Only one thing can be said with 100% certainty - making money working in the MLM system is possible and cannot be argued with.

A completely different question - will you be able to do it?

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

Let's consider in detail 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 on In this case, the people involved in the promotion of goods are at the same time customers of the company, since they make purchases at the wholesale (distribution) cost. Then the products are resold at a higher price. The company spends less money on advertising, its customers take care of selling goods to customers themselves.

Is the percentage of sales not the only plus when working in MLM? This is, first of all, the company's own business of distributors. Network marketing is beneficial to partners in that they receive good remuneration for their work. So, for attracting new people to the company, active distributors are paid additional remuneration for the turnover from their entire team. Such income is called passive, since, once inviting a person, registering him and training 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. In this case, income continues to flow to the founder of the structure. Thus, in a few years, anyone can secure a comfortable future for themselves.

Many people ask themselves the question: "What is MLM business?" First of all, this is a huge amount of work to promote products, to recruit new distributors. But the remuneration for the effort you put in can't equal the pay for a regular job. It is in the field of network marketing that now a large percentage applies not only to European countries or America. There are a huge number of MLM leaders in Russia.

Consider network marketing - what is it, what terms are used in this business? The marketing plan is the rules in accordance with which all accruals are made to the distributors of the company. It indicates everything and the conditions under which they are received.

A check is a money document with a payment indicated on it. The partner to whom the payment is made and other necessary data are also indicated here.

Auto concept is a term that is increasingly used in network companies. Particularly active partners have the opportunity to get a car while fulfilling their turnover plan, determined by the structure.

What is MLM for the majority of the Russian population? Many people think that network marketing is a deceitful event, thanks to which especially sassy people want to collect more money in their pockets. In fact, MLM is an opportunity to have their own business for people who cannot open their own company. Any network company is absolutely legal. The negative opinion is formed by the fact that distributors promise "mountains of gold" to new partners. Yes, the opportunity to make money in an MLM company is huge, but people forget that first you need to make a lot of effort. Moreover, for the first few months, a beginner will mainly hear refusals, ridicule and unpleasant statements. But if he crosses this line, gains the confidence that he will continue to follow the right path, the opinions of other people will not matter 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 mocking 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 management of their own time. And whether to choose a business in an MLM company or stay in your previous job is the right of every person.

The first steps in any activity are always the most difficult. The MLM system is no exception. On the contrary, it can be considered a vivid illustration of how important it is to pay maximum attention to the very beginning of a new job. Many do not understand this. Or maybe that's not the point, but incorrect information. For some reason, most newbies think that they just need to register in the network business, and bills will start to appear out of thin air. Such a belief certainly leads to collapse. Realizing that in this industry, as in any other, you need to make an effort, 90% of beginners die out. Therefore, if you have made the decision: “I am looking for MLM,” first realize that this path is not easy, but its plus is that the return is maximum here.

If your sponsor says you don't have to do anything, that's not true, you can be sure. There will be a lot of work, especially in the first year in network marketing. You need to undergo training, master various techniques, learn how to hold meetings and presentations, learn everything about the company and its products. You also need to draw up your own plan, which you will follow, because the organization and phasing of the workflow is important here like nowhere else. A list of contacts of potential clients is required. It needs a separate good notebook that can serve you for a long time. A separate list needs to be created for potential partners. Perhaps somewhere you will see an advertisement "Looking for MLM", or some of the clients seem to you a good candidate - all this will need to be recorded, since the day will come when you want to move on, and for this you will need to create your own network of distributors ...

All this work will need to be done as soon as possible after registration, so you yourself can imagine that you won't have to chill out. Remember, having made the decision: "I am looking for MLM", do not rely on easy profits. It happens only to venerable networkers.

The essence of MLM business

To be successful in any type of business, you must have a good understanding of its essence. Only then will you be able to understand its mechanisms, master important techniques, and be able to grasp important trends. Network marketing is no exception in this regard. Let's try to figure out what is the essence of MLM business, what distinguishes it from other types of activities, what do you need to know about it?

Network marketing is a special kind of trade. It consists in building a wide network of consumers of specific products. Each distributor gets the opportunity to purchase goods at a special price, and invites partners to do the same. Ultimately, the network of distributors expands and the turnover of the company grows.

The essence of MLM business is that between the production of products and their delivery to the end consumer there is only one person - a company representative, an official distributor. This person performs all the functions that are usually assigned to different people in retail outlets. Think about how much advertising money and how many people it takes for an average manufacturer or store to find a buyer. These are managers, storekeepers, salespeople, programmers, and cashiers - a huge staff, not counting loaders, advertising agents, and technical staff. However, you should not be immediately scared and think that the work of a distributor is hard, backbreaking work for yourself and for others. In fact, the process of online trading has been established and worked out over the years, so it is given quite easily. All the materials that are necessary for work are always provided by the company to its employees. Printed materials, video materials, presentation equipment - everything that is required is received by the distributor. His task is to present the company, outline the concept, and interest in products. Perhaps you will need to show trial samples, or talk about personal experience - this is not the topic of our article, and the methods are different for everyone. There is only one goal - to take the order and deliver it to the client at a convenient place and time. Well, and of course, take your own part of the profit. The essence of MLM business is not difficult to understand. On the contrary, all ingenious is simple.

MLM system

The company's MLM system is based on a document that defines all of its financial issues. This foundational document is called a marketing plan. All expenses and all incomes are included in it. It describes who, how much and for what will earn. Well, since MLM is, first of all, a business and numbers in it are of primary importance, the marketing plan can be considered the heart and soul of a network company. No MLM system could work without this document. It is at him that first of all new people who come to network marketing look, because it reflects how much they will earn for their efforts.

The MLM system provides for continuous training and improvement of their skills. Every self-respecting company provides this opportunity to its distributors. The range of products is constantly replenished, new sales techniques appear, and all this requires new knowledge and skills from employees of network companies. MLM is a cutting-edge business, so everyone involved in it must keep up with the times.

List of MLM companies

The list of MLM companies today is very different from what it was 10 years ago. Then it was many times shorter, and represented mostly by cosmetic companies. Today, it is simply impossible to list all the network companies, and the variety of products offered is incredibly great. Consider at least a short list of MLM companies:

Amway is one of the world leaders, a company whose product range includes household chemicals for the home, food additives, cosmetics and perfumes.

AquaSource is a UK based company. Produces homeopathic remedies.

Avon is one of the most famous companies for women.

CielParfum is a domestic company that produces perfumery products.

Coral Club International is a very famous company that produces vitamins and supplements.

Dr. Nona is a brand of cosmetics, perfumery, dietary supplements, based in Israel.

Edelstar is the brainchild of V. Dovgan, a domestic brand of cosmetics. Currently acquired by Faberlic.

Fleur de Sante is a cosmetics brand, an international giant, has been operating since the 80s of the last century.

Herbalife is a famous brand of nutritional supplements and body weight correction products that became famous in the 90s.

Infinum - today also acquired by Faberlic, manufactures cosmetics and nutritional supplements.

Mary Kay is one of the oldest network companies producing cosmetics and perfumery.

Neways is an international company specializing in the production of cosmetic products.

Oriflame is one of the most well-known cosmetic brands.

Provea Collection is a company that distributes exclusive lingerie.

Tianshi is a famous company from China that produces vitamins and supplements.

Tian-De is a relatively young Russian company of cosmetics and hygiene products.

Vision is a well-known chain company that produces high quality vitamin complexes.

This is just a small list of MLM companies represented in our country today. We are sure that a little time will pass and it will become even larger.

One of the relatively new but already trusted MLM companies is 4Life Research. She gave us a job, purpose and financial wealth. Transfer factor, which is developed and produced by this company today, is the only drug that every person on our planet needs. The transfer factor is health, longevity and getting rid of most diseases known to science. We are proud to present such a successful company and such a unique product.

A 4Life distributor can easily achieve wealth. Stable and timely payment of bonuses is provided at all levels and for absolutely any achievements. We reached a new level of orders, invited a new partner, expanded the network - for every step you take to new heights in the marketing plan, a reward is provided. Creating your own profitable business without investment is possible with 4LifeResearch. There are 2 ways to start cooperation with the company - this is Diamond or Leader. Each has its own advantages, and everyone who decided to cooperate can choose what suits him at this stage. The 4LifeResearch Marketing Plan includes travel incentives for distributors who perform at the top performer for the year. These are the Great Escape +, Gold Getaway, Platinum Pinnacle programs. There are many advantages to starting a business with a company. Each of the points of the Life Rewards marketing plan is a separate merit. By joining our team, you will learn about all the advantages and can start making your dreams come true.

Working at 4Life Research is about financial stability and independence, as well as a deep sense of satisfaction from your work. If you are interested, do not hesitate - register as a distributor on our website and become one of the thousands of people around the world who have made a choice in favor of life and health, success and economic well-being.

Hello! Today we'll talk about network marketing. We'll just tell you about it, but that doesn't mean that we urge you to do it. This article is as an overview of the tool, nothing more.

It's hard to say what network marketing is in a nutshell. Someone calls this scheme of earning a real “scammer”, someone speaks of the only opportunity to open their own business without investing tens of thousands in its development. This article will collect the most detailed information, after considering which you will come to certain conclusions and decide for yourself whether it is worth looking for a job in network marketing or is it better to leave this area to others.

What is network marketing and what is its essence

Network marketing- a way to promote a certain product with the help of a network of people who, in turn, receive a percentage of the sale of the product and a reward for attracting new people to the network. A person tells about him to his friends, they, in turn, to his friends, and as a result, a kind of network is obtained in which it is very easy to distribute goods.

For each invited person receives a percentage of his profit. Of course, different psychological techniques are used to attract people to network marketing. Not everyone will find this work profitable, so before explaining to a person the essence of the technology for distributing goods, they work with him for a very long time and explain the benefits that he will lose if he does not agree to this work.

Network Marketing - Pyramid

Some people compare network marketing to pyramid schemes. Yes, the scheme is a bit similar, but in the case of network marketing, no one forces a person to invest a lot of money and just sit, waiting for a miracle. If you work, constantly increasing the base, you can first go to zero, and then to a plus. Unfortunately, in large networks you will already be too far from the top, so you should not expect exorbitant fees and life in the Maldives, but a couple of tens of thousands of salary increases are quite real.

Network marketing system and principles of its functioning

• Any networked system must in some way serve to distribute a product, good or specific service that a company or group of people provides;
• If the flow of goods or services stops even for a few days, money stops flowing and the system crashes completely;
• There should be many representatives of the lowest level in the system, because otherwise the scheme does not make sense at all.

If you decide to do network marketing

It all starts with a banal interview, in which specially trained managers talk with potential buyers, describing all prospects in bright colors. There may be an exaggeration (for example, about the highest income in the first couple of months - even if you are super active and all your friends immediately connect to the network, you will not receive a large amount in the first month).

If you have agreed to register, some companies may require you to pay an online business registration fee. Of course, they will not provide you with any documents, or they will give you something that has no legal force. True, only young and unscrupulous network companies sin with this - the masters who have been on the market for several decades will never do this, reputation is too important for them.

After that, the work begins directly. That is, the constant search for new sellers who can be connected to the network after themselves and get profit from them. The money is received after the sale of the goods, but some companies additionally set a certain payment day, before which it is impossible to receive the entire amount. In the latter case, it is worthwhile to strain - often there are scammers who work for a couple of months, after which they disappear along with the money they earned, leaving behind an empty office and a girl-manager in a pre-infarction state.

How to make money from network marketing

There are three ways to make money in such a company:

• Resale of products. To do this, a certain product is bought at a wholesale price and sold from friends at a market price. The percentage markup ranges from 15 to 30%. This method even has a name: margin;
• Receiving bonuses for some actions performed within the framework of work in the company. Usually, bonuses are based on the number of sales, although there are certain exceptions. Such earnings strongly depend on the company in which the person works - some do not offer anything at all for overfulfilling the plan, and someone very generously presents for each important figure;
• Receiving funds from interest that drips from employees who are invited directly by you and your friends. The more such people you subordinate, the greater the amount. If you stand at the beginning of a large grid, you don't have to work at all - but you need to spend a lot of time and effort on building, in addition, if some of the distributors are disappointed and leave, you will have to return again to expand the grid to an acceptable level of earnings for you.

All these methods require one thing from you: you have to work. Work hard, constantly spread information, look for new clients. Be prepared for a misunderstanding, for the fact that you will simply be banned on social networks, for the fact that you will be trolled and sent in personal correspondence - unfortunately, not all netizens respond adequately to network marketing on the Internet.

Network marketing on the internet

If possible, it is possible to sell goods. Or a site to attract people. True, this will require certain resources, and the promotion will take a lot of time (unless, of course, you are not an expert in software).

Among other things, in order to be successful in network marketing, an employee must have certain character traits. First of all, he must be very persistent, not accept refusals, try to prove his point of view - and, at the same time, be able to retreat if he understands that the situation is taking an unfavorable turn for him. Confidence in this list, perhaps, should come first: if people feel that you know what you are doing and have no doubts, then they will follow you and work in the same company, generating income - well, or just buy some is the quantity of the goods.

Are modern people interested in network marketing?

Despite the large number of standard "scams" and a small percentage of really successful people, everyone who sits on the Internet, at least once thought about this way of making money. Modern leaders of network marketing, like Oriflame, Avon, Faberlik, Vision, Amway, LR, Tian De and Siberian Health, are still in the top queries, according to a special service that determines which words and in what quantities and combinations users usually google.

Before moving on to specifics, I would like to consider the main advantages and disadvantages of network marketing.

Pros of Network Marketing

• You can make big money if you really try. To achieve the goal, it is enough to create a close-knit team that will gradually help you make a profit.
• Financial independence from the company and other people. In other words, you yourself decide when to sell the product and get your own income, the employer does not track this moment at all. Well, and a bonus - financial independence from loved ones, for example, from a husband or parents. But complete financial independence cannot be achieved - all the risks associated with force majeure will remain.
• Having your own business. This is not really a business, at least at the very beginning of the development of your particular network. In a year or two, it will get better, and you will be able to call yourself a small businessman. Investments, by the way, will also be required, so all those who tell you about the complete absence of investments are either lying or do not fully understand the principle of operation of such systems.
• Close-knit team. There won't even be any nasty "buts" - in network marketing they pay special attention to this. People there are quite friendly, but not everyone is ready to go beyond communication, limited by work. There were times when very interesting people turned into workers who were no longer interested in anything but profit. This is not worth bringing to this.

Cons of network marketing

• Earnings are completely unstable. No one guarantees you that the woman over there who bought all the purchased goods from you this month will do the same next month. If you suddenly get sick, missed a meeting with a client, or simply did not like someone - you lost money, and now you will not get it back. In general, a rather inconvenient scheme, requiring constant work and putting aside in the emergency reserve.
• Moral burden associated with constant communication with clients. Even if you are extremely outgoing and friendly, people will not always welcome you. Not all potential clients with whom you will communicate will behave adequately, and if you go to a meeting in person, you can get injured or damaged equipment with the goods.
• Material investments at all stages. They may be insignificant, but this is not so important - the main thing is that you still have to spend money. And it is not a fact that the purchased product will pay off, so at first the distributors try to buy what they can later use. A few thousand rubles is a normal price for starting a career in network marketing. If they are not available at the moment, we suggest that you familiarize yourself with the information.
• Responsibility for the people whom you have invited to work along the same lines. In principle, if a person's moral principles are not the highest, he may not pay attention to this point. So, he will teach a couple of people and forget about them until the moment they leave and his income drops a little.

Myths and Fictions About Network Marketing

This paragraph contains the most common myths about network marketing and a brief description of the facts that debunk them. Read carefully, and if after that you are not disappointed and are ready to start work, proceed to reading the next paragraph.

Myth: The network is the best way to open your own business quickly and practically without initial capital, ceasing to work “for an uncle”.

Reality: Since you will be at the very end of the network, it will take a lot of work. Constantly looking for interested people, monitoring bonus programs and discounts, in general, the first six months at least life will not seem like sugar. Then you will either be completely tired, or you will reach a more or less normal level of earnings. At the same time, you will not earn gold mountains.

Myth: Buyers on the Internet love it when they are offered goods by the representatives of the chain trade, and not by the official stores.

Reality: Not everyone is comfortable buying such products from online sellers. If you are going to sell such products to your friends and family, you risk ruining your relationship with them. No one will like it if someone decides for him that now he needs just such a shower gel, and no other.

Myth: The whole world will soon give up trading through regular stores and will switch to chain trading.

Reality: Delirium of pure water. Companies of this kind appeared in the United States in the early 1960s, and until now even a percentage of all sales are not sales in chains. Thus, in the near future, you don't have to worry about normal trading.

Myth: With network marketing, you can free up tons of time, change your lifestyle, and just be happy.

Reality: Never believe motivational posters and videos, because they often tell a lie. In addition, energetic and constantly developing people are unlikely to like sitting at a computer all day and selling a useless product to strangers.

Myth: Online trading allows you to maintain peace of mind.

Reality: There is absolutely no connection. Moreover, if you are a rather irritable person and cannot calmly react to rudeness and remarks, any calls to customers will more likely lead you out of a state of mental equilibrium.

Myth: You don't even need to look for a permanent network of clients, because you have your friends and acquaintances - they will provide a constant income.

Reality: And now let's imagine ourselves in the place of such a person: he lived a conscious life, choosing the means and things convenient for him, and then bang - a seller comes who offers to throw the years of selection into the trash and start buying completely different, untested products.

Myth: You practically do not work, occupying only an hour or two a day with sales.

Reality: No no and one more time no. Selling in the early stages will take you a lot of time, which most likely do not have. In this case, you still have to look, since combining network marketing with your main job is simply unrealistic - if you want to get at least something.

Myth: The employees who are already in the network are interested in your successful work and development. Working in network marketing allows you to strengthen the spirit, to understand that you can run your business and not depend on anyone.

Reality: Many are playing on this, they say, “why work for someone if you can open a business right now”. Remember, business and network marketing are different concepts, and such a scheme hardly has anything to do with personal freedom.

What to do if you are still interested in network marketing

Criteria for choosing a grid company

Before going to an interview and buying a product, it is recommended to look at the following characteristics of a network company:

• The product they offer. It must be safe and reasonably affordable so that people can buy it without going broke. Of course, there is a chance that you will want to sell the same product as very expensive and of high quality, but this will be on your conscience.
• Age of the company. If it was organized a week ago, then the likelihood that this is another deception, after which the organizers will disappear into the sunset with your money, is very high. The most reliable are companies that have been on the market for at least 5 years. This criterion allows you to weed out financial pyramids: a financial pyramid, even the most organized, will not last five years. In the first five years, unscrupulous network companies squeeze all the juice out of users and also stop working, in the rest you can try to make money (although the competition will be much more serious).
• Marketing plan. It is better to compare it with the plans of other companies that you decide to consider. Compensation payments over the network - the most important thing, you should learn about the conditions of accumulation and payments first.
• Training in the basics of distribution work. A very important point: if they require payment from you, then most likely you will not get any work with them. The same is true if the imposed courses do not help in any way, but simply take up time. Just stop going to them, and if suddenly they refuse to pay you without courses, leave there - no one guarantees that after training you will be paid what you earn.
• Popularity matters too. If a company is known in at least three countries, it means that it is more reliable than a company with the same characteristics, but without representative offices in other countries.
• The legality of the company. If you cannot find a full-fledged representative office (not an office for a day with a bad repair) or an official website, then feel free to sever all ties with the company, because there will be nothing good from such cooperation. Be sure to check the site for performance and content filling: if it was created a long time ago and is periodically updated, then everything is in order.
• Good team. If you see that these people are really burning with the idea, and they themselves are actively involved in sales, and not just pretend to interest you, if their pages on social networks look more like real ones than advertising ones, then you may well trust them. Remember: you do not need to evaluate the team during the first meeting, it is advisable to at least learn a little about them before the interview and take a closer look later.

Independent rating of network marketing companies

Also, when choosing, you can focus on the rating of companies, which was compiled on the basis of the volume of sales in recent years:

• Amway;
• Avon Products;
• Herbalife Ltd;
• Mary Kay Inc;
• Vorwerk & Co. KG;
• Natura Cosmeticos SA

And now more about each company.

Amway

An international company offering customers more than five hundred items of products that help maintain beauty and health at an appropriate level. At the same time, the quality of each unit of goods is strictly controlled, which is a rarity among chain companies in principle.

Features of work

• If a person personally buys a large amount of the company's products, he receives an additional reward;
• The products are purchased at wholesale prices from the company, and the distributor must sell them at a 30% mark-up. It is these percentages that are the main income of a person at the initial stage of work in a network company;
• Additional earnings begin if a person invites his friends to the team. The more distributors and consumers he brings, the more profitable it becomes for him to specifically purchase goods, and the greater the amount he will receive from one transaction.

This company is a real-life example of how people can make money without actually leaving their homes. Of course, you won't be able to achieve the same in a couple of weeks, but if you advertise yourself properly and find regular customers, you will get a good increase in your main income.

Avon

One of the network marketing companies in Russia, which has been known on the market since the 2000s. Representative offices in more than a hundred countries around the world, so there will be no problems with reliability, if, of course, you turn to a real representative, and not to a charlatan hiding behind a well-known brand.

The company is famous for offering more than just cosmetics: in the catalogs you can find costume jewelry, perfumes, nice little accessories for women, etc.

Features of work

Cooperation with a company can be carried out on two grounds:

• As a regular customer with VIP status. Registration is free, each such client gets the opportunity to purchase goods with a standard 30% discount. Every time a client places an order (starting from the first time), he receives gifts from the company;
• As a coordinator. In this case, MLM (multilevel marketing) takes place: the main task of the coordinator is to attract new representatives to the company. The coordinator also has a fixed 30% discount, but in addition to it, receives another 12% from all sales that his referred friends have made. It is worth remembering that for each coordinator there are specific incentives and additional discounts. The only thing is that such promotions must be constantly monitored.

Herbalife

The company is relatively young, it is not yet forty years old, but there are already representatives in almost a hundred countries of the world. If you want to cleanse your body, improve your health and earn some extra money, then distributing in this company is the best option. Natural cosmetics are also available.

Features of work

• To get started, you need to purchase a special set. It will not work to collect cosmetics in separate packs, at least for the first time;
• The difference in percentage is only 25%, in contrast to previous companies;
• Above each distributor is a person who receives commissions once a month.

Mary kay

A company that has been presenting products for skin care and make-up on the market for fifty years. Popularity in other countries is not so great, representatives in less than forty countries, but this does not prevent the company from stubbornly holding on to the first places in the tops of network marketing in Russia.

Features of work

• Only women over eighteen can get a job;
• The consultant is obliged to purchase a starter kit, without which he will not be able to make purchases in the future. Income consists of the money received from the sale of products and interest that is dripped for each new employee invited;
• If you plan to use this cosmetics for a long time, you can become a direct customer with all the ensuing bonuses. Discounts can be up to forty percent, and the company also provides all customers with gifts and a monthly magazine. Those who wish are absolutely free to take several courses, in particular, training in makeup techniques and the basics of doing business.

Vorwerk

This company, unlike the ones listed above, has nothing to do with cosmetics and body care. The catalogs contain appliances, kitchen equipment, etc. There are representative offices in more than 60 countries of the world, and specifically in Russia, such goods can be bought for more than ten years, so the reliability of the company is at the level.

Features of work

• If a person has just started working in a similar direction and does not quite understand what they want from him, the company provides the opportunity to take good free courses, thanks to which even beginners understand the scheme very quickly;
• Nobody monitors the implementation of the plan, the consultant decides for himself when and for how much it costs him to work. Of course, only a percentage of the sales is paid.

Natura

A Brazilian company that has been successfully selling cosmetics and perfumery for almost fifty years, including in Russia.

Features of work

• Both consultants and advisors receive only a percentage of the sales. There is no additional earnings for bringing in new workers;
• The consultant can undergo preliminary free training in the basics;
• The company constantly holds some kind of promotions aimed at encouraging good employees.

Unsuccessful examples of network companies

You must understand that there are different types of network marketing, and not all systems work as expected. There are several examples in this list that show that not all areas are suitable for network marketing, and not all organizers can organize the proper level of work.

• Majeric. Initially, the money was invested in some kind of scientific development, but then the company began to offer very strange projects that, for obvious reasons, did not pay off. At the moment, the company has not rehabilitated itself in any way, the reviews are purely negative, the network has practically disintegrated.
• A company that dealt with fuel additives for cars. The manufacturer itself did not inspire confidence, plus, among men, there are fewer people who are ready to work according to such a system, in general, the idea did not take root at all.
• Internet market Inmarket. The same market, but with the return of a certain commission to the owners. Prices naturally increased, as a result of which the site fell into disrepair.

How not to break loose and work

A few simple tips in the end:

• Always find out the complete information about the product that you are going to offer to customers.
• Don't advertise everything all at once, let the buyer get used to you, explain what you are doing, find out about your preferences and only then start the presentation.
• Pay attention to your appearance and manners. People who look bad tend to sell a lot less.
• Exercise. Read books, attend trainings, do whatever it takes to become more confident and calm.
• Analyze mistakes and do not be afraid to ask more experienced acquaintances for advice.
• Don't neglect the Internet. There is a great opportunity to advertise yourself and your product.
• Find your own sales method, and in no case bring aggression into it. If the salesperson starts pushing, people feel it and almost immediately "merge".
• Do not under any circumstances spoil relationships with loved ones, friends and colleagues. You can stop getting involved in network marketing, and then your whole team will forget about you - but the people who were with you before all this will no longer be able to treat you as before.
• If possible, use the products yourself. Make additional advertising in this way - believe me, potential customers will be interested in it.

Outcomes

So, let's summarize. For starters: be extremely careful. Never get involved in an initiative if you do not like it, in no case pay money if you are not sure of the integrity of the company, etc.

If possible, google reviews about network marketing, in particular, about the company you are interested in, check every word spoken by the representatives, look for the people they talk about on social networks - sometimes you can find a lot of interesting things in photos or in groups. Such a short investigation may well save you nerves, time and money.

If you suddenly fail to make the expected money, try to think: yes, you can make money in network marketing, but for this you need to have a special mindset and attitude. Maybe it's just not yours? There are people who can't bring themselves to do math - that's just not the job for you.

This means that no one is forcing you to run to the next network company, in the hope that mountains of gold will begin to pour in now - just return to your old place of work and try to console yourself with the fact that many people besides you also cannot stand such a race and refuse from “easy” earnings.