Hello, friends!

As a person who has a passion for all kinds of analytics and statistics, I decided, purely out of curiosity, to look at the statistics of queries on the Internet for a key phrase “registration in... followed by the company name”. And find out for yourself which network company enjoys the most attention among those who want to connect their destiny with network marketing. On the Internet, of course. 🙂

To collect statistics, I used the Yandex Wordstat service, with which I regularly consult about website traffic by keywords and phrases.

Without further ado, I made the algorithm for collecting statistics extremely simple - I consistently entered the phrase “registration with Faberlic” into the search bar, “registration in Oriflame” and so on. Moreover, the service told me, for example, that people much more often type like this: , that is, the phrase backwards. But this does not change the essence.

One more thing, it happens that search phrases contain different spellings of the company, for example, “avon”, “avon”, “avon”. In this case, I did not add up the number of all requests with different spellings of the company name, but simply took the most popular phrase. Because if I also added, the stratification in the top ten would be even more contrasting.

During my research, it turned out that only eight made it into the Top Ten Popular Companies that exceeded the 100-search mark. The rest were unable to cross the threshold of 100 requests for the phrase “registration with (-company-)”.

So, first place and the company gained national love Oriflame With 1774 those interested in the opportunity to register.

Oriflame statistics

Second place With 1142 The company won “votes” Avon, although it is not purely online, the brand is very famous and popular. Although Avon is ahead of the Leader in our rating in terms of sales volume, there are fewer people willing to subscribe there. Probably everyone has already been “rewritten”. 🙂

Avon Statistics

The third place of honor is held by the company, the largest Russian network company - 824 "vote".

Faberlic statistics

What’s interesting is that all three leading brands are “cosmetic” companies (in the sense that the product core is cosmetics), apparently the most attractive product for doing network business and direct sales.

Fourth place occupied by the company Vision – 499 “voices”. Although I suspect that many of the requests were for a different Vision. Most likely, someone wanted to know how to register the Nero Vision computer program. 🙂 There may be an error in the vote count. I immediately made a reservation, there may be inaccuracies.

Vision Statistics

Then he steps on his heels Amway – 488 requests, and honorable fifth place. Don't be offended, Amway people, let us offer you to share fifth place with the Visionaries.

Amway statistics

On the sixth bedside table debutant on the Russian market - a German company LR – 163 request. Apparently Heinrich Erdman and the galaxy of Frenchmen who once conquered Russia in the dashing 90s know how to stir up interest in network marketing and their company. Who's last in line for “Polo”?

LR Statistics

Seventh place the network giant in Ukraine and some regions of Kazakhstan has companies Tian De. A company legally registered in Russia and selling Chinese goods has collected 134 request.

Tian De's statistics

The company closes the Cool Eight of the Top Ten Most Requested Registrations Siberian Health, dialed 129 “voices”. Eighth place!

Siberian Health

Other companies, such as Mary Kay, Coral Club, Tentorium, Herbalife, Argo and many others did not receive more than a hundred requests per month, so they were not included in my list.

What conclusion can be drawn from these statistics? My conclusion is this: people are interested in the products offered by network companies, people are interested in the companies themselves, people want to engage in network marketing. And the Internet will only grow. So we have something to work on, friends.

Gentlemen and ladies, you can draw the appropriate conclusions.

P.S. What a cat you are! I completely forgot! Nominee out of competition! 720% per annum on deposits, fans of Sergei Mavrodi receive out of competition (for non-compliance with some principles of network marketing) pride of place in my report With 1478 impressions. The “partners” in Rus' have not yet changed! 🙂

MMM-2011 statistics

Amazing year! Judge for yourself:
Industry leaders - Amway, Avon, Herbalife, Mary Kay, Tupperware— practically retained their positions, having undergone a slight decline.
Nu Skin And Oriflame slightly increased turnover and raised their position in the table.
Company Faberlic significantly increased trade turnover, increasing it by almost 60%, perhaps this was due to the expansion of the product line into clothing and footwear. Let's rejoice for the only Russian company in the ranking.
PM International increased trade turnover, rising from 41st to 36th place.

And here Jeunesse Global, showing a phenomenal rise in previous years, fell by as much as 8%. And this is not an accident, but a natural beginning of stabilization or even a decline; it is obvious that the wave of growth in purchases of other network companies cannot last forever. Next year will tell...
Catastrophic fall Tiens(Tianshi) - from 32nd place they fell to 94th... The reason for this drop is not known, it is very possible that the change in MP that was introduced for the CIS countries had this effect. If this is so, then the main turnover of the company was in the CIS.

Company LR Health was not included in this year’s ranking at all. The reason is not known, but this usually happens when the drop in turnover is so catastrophic that management begins to feel embarrassed about the position of their company.
The Russian company also dropped out of the ranking Vision(Vision), apparently the merger with the Freedom International Group company did not lead to a significant breakthrough, but quite the opposite.

We mentioned only those companies that have worked or continue to work in the CIS market. Perhaps some of those who are now in the table are planning to develop their business with us, if you have such information - let us know, we will take note of such a company.

ATTENTION active distributors of network companies!
You can place your registration link in the rating table.
The cost is negotiable, depending on the number of people interested.
Send applications to the Administrator

ATTENTION! Important!
If you came here via a smartphone or tablet, then only the first columns of the table will be visible, the rest are in collapsed mode.
To view information for all years, click on + in the left column.

You can make money in different ways. Some people are used to waking up every morning to the sound of an alarm clock or a smartphone signal and quickly get ready, fearing that they will be delayed on the way to work - after all, they need to get there no later than a certain hour. Some people prefer shift or shift options, which provide the opportunity to rest after several hours (days, months) of hard work. Still others prefer to work on the Internet, which involves a minimum of personal interaction with strangers.

But what to do if you don’t want to go to regular work, and it’s boring without human communication? There is a way out: this is the so-called MLM business, which involves the sale of goods or services from person to person, without a number of intermediaries and resellers. Theoretically, this should lead to lower prices for products and an increase in their competitiveness compared to store-bought ones. Let’s try to figure it out whether this is actually true and whether working in a network company is true.

Network marketing - companies in Russia (list)

First of all, you need to understand the basic terms and clarify the very principle of operation of network companies, fortunately in Russia it is not too different from the world.

Network (affiliate) marketing- this is a method of direct sale of products “from the manufacturer to the final consumer”, which does not involve the introduction of intermediate links into the chain (retailers, resellers and specially hired sellers).

MLM is a copy of the English abbreviation MLM: Multi-Level Marketing (multi-level marketing). “Levels” in this case are not retail, but structural formations: no matter how complex the network of affiliate business may be, the goods still arrive from the seller to the final buyer without additional markups.

The principle of building a “team” of network companies is approximately the same and is not much different from a financial pyramid: each new participant must not only purchase goods from a recruiter for a certain amount (and then sell it on their own), but also fulfill the plan prescribed in the rules of the structure, already himself attracting new distributors to the network. How successfully a new team member copes with these tasks will determine his rating and the possibility of further promotion, and sometimes the right to continue working in the company.

Important: since Russian legislation does not regulate the MLM business in any way, each network company has the right to set its own degrees of distinction for distributors, development and sales plans, trading conditions, and even regulate their behavior when communicating with clients. It is useless to argue with the demands of the “employer”: a newcomer who could not get along in the team can only leave it - often with losses resulting from the purchase and impossibility of selling the goods.

This is why network marketing in Russia (and in the rest of the world) can hardly be called an ideal start for a young entrepreneur. For a person who has start-up capital and has an idea of ​​a “safety cushion”, it is better to consider other passive income schemes. Perhaps it will be a little longer and a little less profitable, but he won’t be left with a serious loss either.

The advantages of a network business include:

1. Free daily routine. Each seller, regardless of the accumulated rating and current status, is focused solely on results. You can wake up at any time and have a weekend whenever you want: the main thing is to continue communicating with the wards within the structure and customers and carry out the plan.
2. Direct dependence of profit on effort. Unlike routine work with a fixed salary, participation in network marketing gives the distributor the opportunity to sell exactly as much product as he can. Therefore, by spending a little more effort, you can get a more significant income - and vice versa. The same applies to recruiting activities: for attracting new members beyond the plan, the distributor receives additional points, bonuses or cash payments. The conclusion is obvious: the more sociable and resourceful the consultant, the more he can earn.
3. Various bonuses. Depending on the regulations of the network company, this may include business trips abroad, cash bonuses or material rewards. However, since incentive payments, like other aspects of the activities of network companies, are not regulated by Russian legislation, a newcomer should find out in advance whether they are provided for in a specific structure - otherwise, no matter how actively he works, he may be left with nothing.

These are the main advantages of network marketing, but it also has disadvantages:

1. Complete absence of guarantees. The distributor works in the company at his own peril and risk and receives exactly as much as he earned, according to internal regulations. There are often cases when an additional commission is charged on the seller’s earnings, sometimes reaching 40% of the amount. This practically eliminates all tax liberties associated with the lack of government regulation of network business. In other words, even if the seller does not pay money to the state, he will share earnings with the structure itself. And no one can guarantee him any significant profit.
2. Probability of being in the red. As already mentioned, each distributor must, to begin and continue work, not only engage in recruiting, but also regularly (once a month, quarter, and so on) purchase products, which are subsequently intended to be sold to the end consumer. If he cannot do this, no one will return the money to the distributor, and all the purchased goods will remain with him. And since the plan must be carried out, a person who wants to remain in the system will have to make new purchases in the future - and so on endlessly, until successful sales begin or until complete ruin.
3. Lack of government guarantees. This feature of the network business was described earlier: a distributor engaged in the MLM field is not considered officially employed, does not have the appropriate rights and is completely defenseless before the “employer”.

Perhaps the low employment of the Russian population in network marketing (as of 2018, this is only 7% of the working population) is associated precisely with these disadvantages. Nevertheless, a fan should try himself in this area - the main thing is to find a company with adequate requirements and not get too carried away with purchases and “promotion” along the ephemeral career ladder.

Below is a list of the fifteen most popular network structures in Russia, suitable for both beginners and professionals in the MLM field.

Avon

The first network company on the list, founded, like most others, in the USA and came to Russia back in 1991. The area of ​​activity is the sale of cosmetics, perfumes and, to a much lesser extent, hygiene and souvenir products.

Features of cooperation with Avon:

1. To start working in a network company, you must register as a coordinator. Already at this preparatory stage, the future team member will face difficulties: he will have to send the necessary set of paper documents to the company’s office (fortunately, located in Russia) and wait until they are processed. Only after this can you start working.
2. A significant advantage of the network company opening the list is the low cost of products and small amounts of mandatory purchases. As of 2017, this is only 1,600 rubles.
3. A coordinator who successfully sells a product and regularly (with the release of each catalog, that is, approximately once a quarter) attracts at least five new sellers can count on a bonus - a one-time payment in the amount of 125 thousand rubles.
4. Each team member receives discounts on products:
   • 15% - when purchasing cosmetics and perfumes only for yourself;
   • 15–32% - if the above plan is implemented.

Important: Avon pays coordinators directly to their bank card, which is undoubtedly very convenient. On the other hand, it is this network company, at least in Russia, that “removes” from 20% (for beginners) to 40% (for advanced sellers) of earnings from each transfer. In addition, the structure completely lacks vertical development, and all the work of the coordinator can be transferred to another seller if the contract with him is unilaterally terminated.

Faberlic

The second chain company on the list is also engaged in the sale of cosmetics, perfumes and related products. The structure was founded in Russia in 1997 and since then has been systematically and confidently developing, without, however, showing any special miracles.

Features of cooperation with Faberlic:

1. To get started, you do not need to send any documents to the office of the network company.
2. The calculation is made in points: one point as of 2017 was equal to 80 rubles.
3. Mandatory monthly turnover is 50 points, that is, 4,000 rubles. Failure to comply with this requirement may result in the consultant being deprived of the bonus or expelled from the structure.
4. Vertical growth is provided: in particular, to obtain the title of “Director” you must achieve a turnover of 5000 points, that is, 400 thousand rubles. The successful seller will be paid a bonus of 55 thousand rubles.
5. The possibility of passive income is completely absent: no matter what level a consultant reaches, he is still required to fulfill a regular sales and recruiting plan.

Among the advantages of Faberlic is the absence of an entrance fee. One of the most unpleasant disadvantages is the lack of business trips abroad and material incentives (only cash bonuses).

Art Life

This network company, third on the list, also comes from Russia. It was created in 1997 and was initially engaged in the sale of bioactive additives (dietary supplements), nutritional products (in particular, instant jelly) and cosmetics. Despite the extremely successful start of the project, over time its growth began to slow down; Now Art Life, although not one of the leading Russian network business structures, continues to stay afloat, bringing a stable income to both the founders and ordinary distributors.

Features of cooperation with Art Life:

1. A newbie can register as a privileged client. In this case, he will only need to purchase a discount card worth 150 rubles, which gives the right to purchase the company’s products with a fixed 30% discount. He doesn’t have any more responsibilities at this stage: he can remain a buyer for as long as he likes, or he can become a distributor (business partner).
   • This network company provides three options for cooperation:
   • « Smooth start» - purchase for the purpose of further sale of goods worth 50 points (about 3,000 rubles);
   • « Fast start» - purchase of products worth at least 100 points (accordingly, about 6,000 rubles);
   • « Leadership start" - the amount of the first purchase is greater than or equal to 400 points (about 24,000 rubles).
2. In addition, a monthly sales plan has been developed for network business participants - at least 50 points (the same 3,000 rubles). The three lowest levels of the company have the opportunity to take a break from work for three months.
3. Sales are carried out personally or in a team. In the first case, the distributor receives 10% commission on sales volume; in the second (for the senior in the group) - up to 15% of personal turnover and 5% for sales of each junior consultant.
4. One of the highest levels in this network marketing is “Director”. In this case, the group turnover must be at least 500 points monthly and a total of at least 4,000 points. The “Director’s” income is 35% from personal turnover, 20% from the sales of each of the “Masters” of the group and 25% from the turnover of each consultant.

The main advantage of a network company is a well-functioning system of rewards and compensation.

Amway

The fourth network company on the list, founded in the USA in 1952 and first appearing in Russia more than half a century later, in 2005. The area of ​​activity is the sale of household chemicals and items for home (apartment) care.

Features of cooperation with Amway:

1. To start working in a network business, you must pay an entrance fee of 5,000 rubles.
2. Mandatory monthly turnover - 200 points (as of 2017 - about 10,000 rubles.
3. Vertical growth is possible, but it is greatly hampered by the high price of the product and the complexity of its sale.
4. The presentation of products, according to the company’s requirements, is carried out directly at the buyer’s home: the consultant may offer to wash something, remove a difficult stain, and so on.

The indisputable advantage of a network company is the quality of the goods sold. On the other hand, they are not cheap, so they remain inaccessible to many residents of Russia.

Oriflame

The fifth company on the list was founded in Sweden more than 50 years ago and came to Russia in 1996. The products sold are cosmetics and bioactive additives (BAS).

Features of cooperation with Oriflame:

1. There is no entry fee for participating in a network business.
2. Mandatory monthly turnover is 150 points, that is, about 6,000 rubles.
3. Discounts for consultants - up to 32% on the next personal order after the next implementation.
4. The bonus for reaching the “Director” level is $1,000, “Golden Director” is $2,000. To obtain the director's title, you must sell goods worth at least 250 thousand rubles monthly.
5. A consultant for a network company may not engage in recruiting at all, without losing income.
6. The income of the “Golden Director” and the higher levels is passive, amounting to 5% of the sales amount of the team he created.

The network company holds monthly conferences abroad for employees, including newcomers. The business can be inherited or sold to a third party.

TianDe

Sixth on the list is a joint Chinese-Russian company founded in 2007. Sales area: cosmetics, perfumes, healthy food products, dietary supplements, souvenirs and jewelry.

Features of cooperation with TianDe:

1. To start working in an online business, you don’t need to pay anything.
2. Sales are calculated in points (the approximate rate is 50 rubles per 1 point).
3. The consultant receives only 50% of sales.
4. Vertical growth is possible up to the level of “Diamond Director”.
5. There is no passive income at any stage of the career ladder

Since the company is relatively young, fairly modest incentives are provided for distributors of any level: discounts on personal purchases of up to 24% and cash bonuses. A member of the TianDe team should not count on foreign business trips in the near future.

Herbalife

The seventh network company on the list is one of the most famous in Russia and the CIS countries. Founded in 1978 in the USA, it came to the Russian Federation at the end of 1994. The area of ​​activity is the sale of products for a healthy diet and weight loss, as well as cosmetics.

Features of cooperation with Herbalife:

1. To start working in network marketing, you need to buy a basic distributor kit.
2. The product distributor receives 25% of the sales he makes.
3. The next level is supervisor. His income is already 50% from retail sales, 25% from wholesale sales, plus a commission of 5% for each distributor.

The main disadvantage of working at Herbalife is the high existing competition and, therefore, the difficulty in selling the same type of product. In addition, products of truly high quality are quite expensive and therefore are in little demand in the territories of the countries of the former USSR.

Mary Kay

The eighth network company on the list, created in 1960 in the USA and “brought” to Russia in 1993. Objects of trade - cosmetics and perfumes.

Features of cooperation with Mary Kay:

1. Only adult women can work in the network business.
2. A beginner needs to purchase a starter kit, the cost of which is regularly reviewed.
3. You can earn income both directly from sales and from participating in presentations and attracting new consultants.

An additional opportunity for those who do not wish to participate in network marketing is to purchase a regular customer card, which entitles you to a discount of up to 40%. Bonus - free training in makeup and sales techniques.

Vorwerk

The ninth on the list and the oldest network company, originally from Germany. Year of foundation - 1885; appearance in Russia - 2005. Field of activity - sale of equipment for kitchens and floor care.

Features of cooperation with Vorwerk:

1. A beginner is required to undergo free training.
2. Advanced training courses are held regularly.
3. Vertical growth possible.
4. The consultant may choose to engage exclusively in direct sales without recruiting new salespeople.
5. Floating scale of percentages due to distributors for each sale.

Vorwerk transfers earnings directly to the consultant’s bank card without charging additional commission.

Natura Cosmeticos

The tenth network company on the list was founded in Brazil in 1966 and came to Russia in 2008. Products sold are cosmetics and perfumes (in total more than 1000 items as of 2018).

Features of cooperation with Natura Cosmeticos:

1. Entrance to the network business is free, as is the initial training.
2. For each consultant who copes with the sales plan, additional discounts, bonuses and cash bonuses are provided.
3. Sellers of the first and second levels - consultants and “Advisers” - receive a percentage of each sale.

The schedule of a product distributor is completely free: he can work when it is convenient for him, as well as take short “vacations”.

Siberian Health

The eleventh network company on the list, founded in Russia in 2015. The subject of sale is healthy food products and “eco-friendly” cosmetics.

Features of cooperation with Siberian Health:

1. You can start working without a down payment.
2. A complex system of points, discounts and rewards, as well as deductions for failure to fulfill the monthly plan.
3. Every month, the consultant is required to buy (for himself or for the purpose of sale) products worth 100 points, that is, about 6,000 rubles.

The main disadvantages of this network marketing project are the high cost of products and huge internal competition: it will be extremely difficult for a beginner to break through and start earning any serious money at Siberian Health.

Agel

Twelfth on the list is the network company Agel, founded in 2005 in the USA and almost immediately came to Russia. The product being sold is natural edible gels made from berries with the addition of fruits and herbs.

Features of cooperation with Agel:

1. The opportunity to earn income both from personally recruited distributors and from the “first generation” of sellers they invite - the so-called quadraplane.
2. Due to the technical features of the project, to enter the business you need to pay from 450 to 1300 dollars, with the emphasis being on the most expensive option.
3. Each month the consultant is required to purchase at least $120 worth of products.
4. Beginning distributors receive only 3% of sales.

The company is primarily suitable for experienced network marketing professionals who have the appropriate skills and capital to enter the business. Among other things, it will be difficult for a newcomer to get to the top due to strong internal competition.

Green World

The next company, thirteenth on the list, was founded in China in 1995, and appeared in Russia in 2011. Field of activity - distribution of products for maintaining health and home care.

Features of cooperation with Green World:

1. The consultant is obliged to purchase goods at least once every three months. The purchase amount is not fixed.
2. An active distributor must purchase at least $100 worth of product once a quarter.
3. There is a flexible system of discounts and incentives for successfully completing the sales plan and attracting new distributors.

Despite its long-standing presence on the Russian market, this network business is still little known and is not developing as actively as the previously mentioned TianDe.

Vitalayn

The fourteenth network company on the list comes from the USA. Year of foundation - 1994; year of “arrival” in Russia - 1999. Products sold - cosmetics, bioactive supplements and healthy food products.

Features of cooperation with Vitalayn:

1. In addition to network marketing, the company actively cooperates with Russian pharmacy chains and online stores, which greatly exacerbates internal competition.
2. A newcomer automatically receives a 30% discount on products.
3. Every month you need to purchase goods for at least 45 points (about $90).
4. As turnover increases, bonuses for the distributor also increase - from 10% to 32% of monthly sales.

The company's disadvantage is the high cost of products, which makes it difficult to sell them in Russia and the CIS countries.

Zepter International

The list is completed by an Austrian network company founded in 1986. It appeared in Russia twenty years later, in 2007. The structure's field of activity is the sale of kitchen appliances and utensils, luxury household chemicals, cosmetics, jewelry and even jewelry.

Features of cooperation with Zepter International:

1. Beginners receive a free training course.
2. Thanks to a well-functioning network marketing scheme, competition within the company is minimal.
3. A consultant with minimal sales receives only 18% of the total cost of products sold; the maximum stipulated share is 25%.
4. Vertical growth and creation of your own substructure is possible.

Due to the high cost of Zepter products, it is quite difficult to sell them: the business is suitable for professionals, while a beginner will have a hard time even after initial training.

How to choose a network company for cooperation?

An ideal network company must meet the following requirements:

1. First of all, match the interests and abilities of the seller.
2. Engage in the sale of goods permitted for free circulation in the country.
3. Offer high-quality products that are safe for the health and life of customers.
4. Be present on the market for at least 5–10 years.
5. Have a well-thought-out marketing plan that is beneficial for the distributor, as well as a flexible system of discounts and rewards.

Advice: it is better for a novice seller to choose an MLM business with little internal competition and a low entry threshold: this will help not only to avoid possible disappointments, but also not to regret too much about wasted money if the cooperation is terminated.

Let's sum it up

It is possible to make money in the field of network marketing: to do this, it is enough to have ingenuity, communication skills and a small start-up capital, as well as to be internally prepared for possible failures.

A novice direct sales agent should not invest all his money in initial or subsequent purchases, nor should he place too much trust in his superior colleagues. This is how, remembering to be careful, he can protect himself from ruin and build a decent career in the network company he has chosen.

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

After all, for many centuries the model of distribution of goods and services “ manufacturer – large wholesale – small wholesale – retail – buyer"was the only possible one.

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

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

So, from this article you will learn:

• What is MLM - the history of the network business industry;
• The main advantages and disadvantages of network marketing;
• Which MLM business network companies are the most popular (ranking by sales volume in the world).

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

What is network marketing and how does it work, what is the basis for the scheme of cooperation with MLM business, which MLM companies have high ratings and much more, read below in the article

Network marketing is a system for selling goods and services from manufacturer to buyer, which is carried out through recommendations from person to person.

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

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

Network Marketing Objectives

• Product pricing optimization. Before 70% The retail price of everyday goods consists of the costs of the distribution network and advertising. Changing the distribution structure allows you to reduce costs.
• Providing customers with high-quality, authentic products. With traditional product promotion, there are obvious prerequisites for the appearance of counterfeits on the market, but in the direct sales method they are absent: the product is not as widely known as analogues from the traditional market, the manufacturer, distributor and buyer are not interested in the appearance of counterfeit products.
• Improving the product delivery system. The manufacturer's control over the logistics and storage of goods allows us to provide the consumer with a product of appropriate quality and in optimal time (read the article at the link).
• Improving the distribution of profits of the manufacturing company. Reducing costs allows you to direct financial resources to incentive programs for sales agents, various bonuses and incentives, as well as improve product quality.

Below we will consider the principle of network marketing.

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

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

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

2.1. Network marketing from an MLM company

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

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

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

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

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

2.2. Network marketing from the consumer side

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

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

2.3. Network Marketing from the Entrepreneur's Side

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

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

Some terms and definitions used in the network marketing business:

Distributor - a sales agent who has an agreement with a direct sales company and receives a remuneration for product sales, as well as a percentage of commissions for the turnover of the network created by this entrepreneur.

Sponsor (partner) of the 1st level – a sales agent who introduced the consumer to the possibilities of this business and helped to conclude an agreement with a network marketing company.

Sponsorship (affiliate) line – a list of entrepreneurs directly interested in the success of the distributor’s activities, which includes a 1st level partner, his sponsor, etc.

Side Entrepreneurs – a set of distributors that do not belong to either the sales agent’s subnetwork or the sponsorship line.

Bottom line partners – a list of agents included in the distributor’s network.

Organization width — a set of partners of the 1st bottom line.

Depth of organization — all agents of the 2nd and subsequent lower lines in the distributor’s subnet.

Active income – monetary reward for work performed by a person. Income depends only on the quantity and quality of labor invested.

Passive income- profit received by a businessman constantly, for one-time work performed. To obtain this income, a prerequisite is the presence of assets, which can be real estate, bank deposits, shares, etc.

8. Advantages and disadvantages of network marketing - an overview of the main disadvantages and advantages of the MLM business 📃

MLM business has a number of advantages and disadvantages. The assessment of this type of activity in the media, among reputable businessmen and politicians varies greatly.

Advantages of MLM business and its advantages

Let's consider the main ones:

1. Low barrier to entry into the market. When opening any business, an entrepreneur evaluates the resources he needs to start in the market. In a direct sales business, you need little money to start your own business. There are also no costs for renting premises, warehouses and other fixed costs.
2. Possibility of doing business on the Internet. Since the end of the twentieth century, more and more consumers, manufacturers, and businessmen have been making purchase and sale transactions on the World Wide Web. Doing business online is an undeniable advantage of business.
3. Product quality. Thanks to the peculiarities of MLM marketing plans, companies have the opportunity to allocate large sums for the production of quality products compared to competitors who use traditional marketing to promote goods.
4. Training programs. To develop the skills of sales agents, direct sales companies introduce training programs that include books, CDs, seminars and a variety of trainings and presentations. This information allows you to develop not only in sales, but also contributes to personal growth, improvement of family relationships, etc.
5. Part-time employment. The opportunity to work in your free time and at the same time have income from your main activity.
6. affiliate program. The sponsorship (affiliate) line is interested in the success of the distributor. More experienced partners support, help and advise newcomers in every possible way. Relationships are built on equal terms, regardless of income.

As you can see, there are significant advantages for which you should start this business. We also suggest you read the article “”, perhaps you will find useful information there.

Disadvantages and disadvantages of network marketing

Let us now consider the main disadvantages:

1. Reputation. Due to the lack of restrictions and selection of agents, sometimes new entrepreneurs conduct business incompetently: they impose products and the business itself, give false information and thereby compromise this type of activity in every possible way.
2. High likelihood of deterioration in relationships with friends and family. The majority of the population prefers to work for hire. If you run a business without an office, warehouse or employees, friends and relatives have a negative attitude towards this business.
3. Slow or no business growth. As a rule, an entrepreneur receives the first significant results within a period of six months to two years, subject to systematic work and training. A very large number of distributors have not been successful in this business.
4. The vast majority of proposals for cooperation are rejected. With active participation in building a business 80 — 95% of the work does not bring results.
5. Only a few entrepreneurs achieve significant success. On the path to success, a sales agent encounters many difficulties, which require perseverance, education and self-improvement to overcome. Not everyone is ready to overcome all possible obstacles.

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

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

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

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

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

By the beginning of the new millennium, all the global leaders in network marketing were present on the Russian market.

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

The table shows that the world leader in this industry is the company “ Amway"in Russia it ranks only third in terms of sales.

Corporations have the largest market share " Avon" And " Oriflame».

Is it possible to make money in MLM, what do you need to make money in network marketing?

10. Is it easy to make money in network marketing, and what is needed for this 💰

Due to its advantages, network marketing is a fairly popular activity.

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

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

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

To achieve significant results in business, you should follow the following tips:

A dream is the main factor that allows an entrepreneur to overcome difficulties and achieve success. To maintain motivation, you should “break the path to your dream” into intermediate goals.

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

Tip 3. Learn and develop

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

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

Tip 5. Present business and product

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

Tip 6. Consult sponsorship line

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

Tip 7. Build a business based on the developed strategy

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

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

It is also worth noting that downline partners also observe the distributor and will repeat his actions.

11. FAQ - answers to frequently asked questions

Before engaging in multi-level marketing, potential distributors have a number of doubts and questions.

Question No. 1.

Should a beginner start? It's worth it, but you shouldn't expect quick success. No risk of being in the red, small initial investments, high-quality educational programs, help from partners -.

factors that can influence success

Question No. 2.

How to make your first money in network marketing? When starting cooperation with a “network” company, sales agents strive to do so as quickly as possible. The activity should begin with simple retail sales. Buying a product at a wholesale price and selling at a retail price - distributor makes money. First of all, products should be offered

friends, relatives and acquaintances,

since they will be more loyal to an inexperienced seller, and in the future they will be able to become regular consumers or business partners.

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

The direct sales business is a legal activity, which is confirmed by the very fact of the existence and development of these companies for decades. Many illegal structures disguise their activities under the guise of network marketing companies Important!

The potential client is asked to deposit an initial fee, pay for mandatory training and purchase a minimum quantity of goods. This is accompanied by the absence of receipts and invoices confirming the purchase of products or the provision of services.

Also the consumer should

be wary of poor product quality

or lack thereof.

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

Question No. 4. What reviews does network marketing have - is it possible to really make money from it? There are many different reviews about network marketing on the Internet. Here are some of them: Oriflame Review 1.

At the first stage, I managed to have a fairly large income, but then everything changed. I am raising two children alone, and as my network grew (at that time I had 34 people on my team), it became increasingly difficult for me to combine household chores and business.

As a result, income began to decrease, and at a certain point 12 people “left” my network. Later, I decided to switch to the classic business. In order to have great success in this direction, you need a lot ambition, determination and activity. One girl from my structure achieved great success in " Oriflame" I don’t regret anything, the knowledge and experience gained at that time allow me to now successfully do my business.

Olga, Samara»

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

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

I do not advise anyone to engage in network marketing.

Alina, Rostov»

Review 3." IN 2009 I had to close my own business and ended up owing money to the banks $40,000, of which 2 000 it was necessary to pay every month. I urgently needed to get out of this situation. I was in search of a solution, considering various options for making money.

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

I have enough wealthy friends and, to get out of my situation, I had to actively promote the products. During my first year in network marketing, I spent about 2-3 meetings with clients, and on weekends - 6-7. The result was not long in coming - I paid off my debts and, without actively “attracting” partners, achieved 9 – 12 % levels of achievement.

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

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

Andrey, Peter»

Question No. 5.

How to distinguish network marketing (MLM business) from a financial pyramid?

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

The plan only involves attracting new “agents”.

Question No. 6.

How to choose an MLM company to start?

• Beginners who consider the direct sales business to be a suitable activity are faced with the question of choosing an organization for cooperation. For an optimal solution, a number of aspects should be taken into account:
• Reputation and age of the company.
• Tutorial. The education system has a significant impact on business success.
• Availability of the company's business on the Internet. Not being online significantly reduces opportunities for business growth.
• Business plan. It is important to evaluate the company's marketing and sales plan against the criterion of fair distribution of the organization's profits. You should also find out if there are restrictions. The best type of business plan is " multi-stage plan with compartment».

Question No. 7.

I want to try myself in network marketing at Oriflame, Faberlic, Amway - what do I need for this? In order to become a distributor of direct sales companies, it is necessary to draw up a cooperation agreement with this organization; the age of the applicant must be.

at least 18 years old

To register an agreement, it is necessary for the newcomer to have a sponsor who will help prepare the documents.

12. Conclusion + video on the topic 🎥 In recent decades, various methods of product promotion have been rapidly developing in Russia, one of which is network marketing. Despite its controversial reputation, this method of trading.

has become convenient and popular among customers Possessing thorough information about what constitutes direct sales business

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

In conclusion, we also suggest watching an interesting video about online business: Which MLM company is the best? Quite a few copies have been broken on this issue. This is understandable - for everyone, their own company is the best.

But there is at least one objective criterion by which you can rank global network marketing companies - sales. The MLM-PRO consulting group publishes a ranking of the world's 50 leading MLM companies by net annual revenue.

The list is topped by a wide margin by the honored heavyweights of the industry - Avon and Amway, and this is not surprising. But there are also several interesting newcomers in the ranking - companies with less than 10 years of history that have demonstrated tremendous growth. Sentsy and Ambit Energy have proven how quickly you can build a world-class company in the MLM industry.

*according to WDSA, 2012 data