I provided statistics on search queries on the Internet using the Yandex Wordstat service. Much water has flown under the bridge since that time. How are things going four years later, in April 2016, I wonder?

This time I slightly changed the rating conditions. Last time I analyzed the popularity of companies based on people’s interest in them from the point of view of cooperation. Therefore, I studied mainly search queries for the key phrase “” when it came to Faberlic statistics.

This year, I decided to analyze search statistics for higher-frequency queries and used only the company name in the query.

For those who do not quite understand what the Yandex Wordstat service shows, I’ll explain a little.

For example, you are interested in how many people enter queries into Yandex with the word Faberlic. Type the required keyword in the statistics line and get the number of impressions with this word. In the picture we see that over the last 30 days there have been 947,453 requests in Yandex containing “Faberlic”. The Yandex statistics service takes into account all requests with the word Faberlic: “how to become a Faberlic consultant”, and “Faberlic catalog”, and “”, and many others.

Thus, it turns out that the higher the numbers in the statistics for a keyword or phrase, the more people are interested in this phrase on the Internet. Accordingly, we can conclude that the more people on the Internet are interested in the Network Company, the more popular it is among the population. Of course for more qualitative analysis It would be nice to have data on trade turnover, dynamics, assortment of goods, to know average bill, number of consultants and consumers. But unfortunately the Company network marketing In Russia such data is not publicly posted. Therefore, we will operate only with those numbers that are available to us. In addition, these figures quite realistically reflect brand recognition and popular love.

As a result statistical research These are the results:

The table shows only companies that received more than 100 thousand search queries per month in Yandex. Pay attention to the significant gap between the top three.

Now let’s compare how the statistics for the key phrase “registration with a company” have changed.

In this table, I was primarily interested not in the ratio of numbers between companies, but in the dynamics. She's impressive. If in 2012 only 824 people were interested in registering with Faberlic, then in 2016 there were already 3,643 people. An increase of 324%. And this is for almost all of the leading companies in the rating. Thus, we can conclude: more and more people use the Internet to shop and obtain the necessary information.

Every day, thousands of people around the world are trying to discover ways for themselves that could provide them with the opportunity to obtain a basic or To do this, they have to look at the vacancies that have appeared on the labor market or study certain ways of earning money.

Network marketing allows every person to help solve the problems of generating income. Reviews from professionals in this business clearly indicate that success can only be achieved if the right steps are taken at the start of a career in MLM.

It is quite difficult to explain in a nutshell what network marketing is. Some people, when faced with such companies, call the earning schemes they create a real “scam”. But there is also an opinion opposite to this. According to him, network marketing receives reviews as the only opportunity to open own business without the initial investment of large sums of money in its development. So which of these two opinions is correct? In order to understand this, you need to understand the question “Network marketing - what is it and how does it work?”

Only after collecting detailed information about the MLM system will each person be able to come to certain conclusions and decide for themselves whether it is worth working in this area, or leaving it for others.

What is MLM?

This abbreviation stands for: MultiLevel Marketing. And this means nothing more than “multi-level marketing”. This is also a direct sales system.

Network Marketing (MLM) is in a special way promoting a particular product with the help of a whole network of people who receive a certain percentage of sales or a reward for attracting newcomers to the company. A person simply tells his acquaintances and friends about the product, and they, in turn, distribute similar information further. As a result, a kind of network is formed that facilitates the rapid sale of goods. This is the essence of network marketing.

Inviting people to the company is very profitable. After all, for each new customer a person receives a certain percentage of the profit received. However, expanding the network of buyers is far from simple. Often, for this purpose, network marketing uses a wide variety of psychological techniques. Not everyone likes this. That is why, before inviting a new person to the company, network marketing professionals must explain to him the essence of such a product distribution technology and explain the advantages that this work has.

A little history

The first company operating on the MLM principle appeared back in 1927. It was then that the creator of food additives, K. Rehnborg, launched multi-level sales, in which he achieved good success.

Initially, K. Rehnborg was engaged in ordinary trade. However, a moment soon came when the demand for products became significantly higher than his capabilities. And then K. Rehnborg came up with a great idea. He began to attract acquaintances and friends to distribute the product he created, offering them an appropriate reward.

Somewhat later, people from this company, which was called Nutrilite Products, Lee S. Mitenger and William S. Casselbury, developed the basic principles of such sales. Soon MLM gained popularity all over the world. By the end of the 50s of the last century, on the basis of the company, which laid the foundation for a new type of product distribution, the now widely known Amway retail chain was founded.

But the MLM scheme and companies working in this field gained particular popularity in the 80-90s of the 20th century. And today they offer a very extensive range of products, which includes almost everything, from vitamin supplements to dishes, cosmetics and household appliances. Which companies have chosen network marketing for themselves? "Oriflame" and "Avon", "Faberlic" and "Zepter", as well as many others. According to experts, some of these companies have an annual turnover of products offered on the market reaching about 200 billion US dollars.

Learn to distinguish

Sometimes a network company is compared by those who first encountered MLM with a financial pyramid. Of course, at first glance, the scheme by which sales are carried out is not very simple. However, when it comes to network marketing, a person is not required to invest huge amounts of money and then just sit and wait for a miracle.

If this is real network marketing, how to make money in this area? It will take a lot of effort to grow your customer base. At first there may not be any profit. However, if you put in some effort, you can soon start receiving some income from sales. If the network is too large, the newcomer will be far from the top. In such cases, he should not expect a move to the Maldives or exorbitant fees. But a couple of tens of thousands as a salary increase is quite realistic.

However, before you become an agent and start attracting clients, you need to pay attention to certain moments. They will allow you to avoid a financial pyramid. So:

1. True network marketing offers to sell a specific product or service that is contained in the manufacturer’s catalog. Products are never purchased for future use. Only those products that have been ordered by customers are subject to sale. Payment for goods is made on the day it is received from the warehouse.
2. A company operating on the principle of a financial pyramid will require payment of membership fees or the purchase of “securities,” which outside of this organization are nothing more than ordinary candy wrappers. In addition, in a financial pyramid, each person receives a profit not at all from the volume of products sold by him and his network, but from the number of people whom he brought to the company and who paid membership fees to it.
3. Another type of network earnings that raises doubts is the sale of various equipment or software. Before starting work in such a company, you will need to pay for a certain package of services that allows a person to take one or another place in the trade chain. These can be various tools for work in the form of a plastic card or personal account, the use of which is impossible without paying a subscription fee. Where can you find this kind of network marketing? Examples of running such a business are far from isolated. Thus, Talk Fusion attracts potential clients and agents with offers of income that can only be received after paying a certain amount in advance and attracting two or more new recruits. The chain created in this way will generate profit. Such a scheme is more similar to a financial pyramid, although the company still has a product that needs to be sold. But, in order to succeed in this company, a person must have the qualities of a psychologist, speaker and leader. And even in this case, he is unlikely to be able to rise from the initial level to the very last step.

From the above, we can conclude that successful earnings in an MLM company are possible only after a preliminary study of all the conditions of cooperation. Only by making the right choice can you achieve successful promotion.

Assessing prospects

How to start making money in direct sales? To conduct such a business, a reliable and promising network company must be selected that will allow you to achieve the desired result. The most the best option a well-known brand will appear at the start. When choosing it, you will not need to make much effort to convince customers of the need to purchase. Cosmetics manufacturers such as Faberlic or Oriflame, as well as companies offering household goods (for example, Amway), are popular. Consumers have already appreciated these products, and they will buy them without any worries.

However, it is worth keeping in mind that the niche famous brands other distributors have already taken over. And for those who have chosen network marketing for themselves, how to make money in this case? A high level of competition will require the use of a special strategy, without which it will be impossible to create a customer base and start receiving your own passive income. Of course, in this regard, it is easier to make money in a newly created network company that offers a product that inspires consumer confidence, but is also scarce on the market. These are new dietary supplements, training courses, devices for health and home, etc. The choice of one direction or another will largely depend on a person’s personal interest, as well as on his desire to make money from it.

Rating of MLM companies

There are a large number of manufacturers on the Russian market who sell their products through direct sales. What are these network marketing companies? Their rating contains those brands that occupy almost 70 percent of the MLM market. First on this list is Avon. It is followed by Oriflame. Third place belongs to the Amway company. On the fourth is the Mary Kay company, offering cosmetics. Faberlic occupies fifth place in the ranking.

The remaining companies are considered smaller and cover the remaining 30 percent of the market.

Education

If network marketing is chosen as the direction of business, how to make money on it? You should pay attention to the assistance that company representatives provide to newcomers. It may include various manuals and video tutorials, trainings and meetings. All this, as a rule, is provided completely free of charge. Sometimes curators help in attracting first clients. Without training, it is impossible to work in MLM at any stage. The more detailed information If a person knows about the product and its benefits, the easier it will be for him to convince other people that they need it. That is, persuasiveness directly depends on the existing knowledge base. The experience of MLM professionals also helps, who will definitely tell you how you can make a profit faster, as well as attract new people to create passive income.

Making a profit

An important point when choosing a network company is to study the scheme for accruing funds and bonuses. After all, earning money is the main motivation for any person.

With a fairly transparent scheme for generating income, the absence of penalties, as well as unrealistic targets for the sales volume proposed by the company, working in a chosen network company is quite capable of bringing good results.

Action Plan

After choosing a specific network company that provides an excellent opportunity to make money, it is recommended to draw up a business plan for yourself that will allow you to understand what attention should be paid to.

So, it’s worth choosing a way to get money. This could be through direct selling or using a passive option. Which one is more promising? Often product distributors seek to start with personal sales. At the same time, they get the opportunity to study demand and create a customer base.

Professionals who have thoroughly studied network marketing look at this issue somewhat differently. How to make money according to their advice? MLM gurus recommend that beginners start from two positions at the same time. After all, among potential clients there will always be people who want to receive additional income, as well as those who want to purchase products at the purchase price.

Networkers who are at the highest or middle level in the hierarchy of the distribution scheme note that they owe most of their earnings to the work of their subordinates, and not at all to direct sales. Thus, after some time, having built up a client base, you can completely abandon direct sales of products, having properly motivated the entire multi-level structure of agents.

Sales methods

How to earn a good income in a network company? To do this you will need to find the most effective methods attracting clients. There are several of them:

1. Direct contacts with people. This method is used if a person working in a network company has free time to visit public places or there is very big circle relatives and friends who are not yet involved in the MLM business. However, judging by reviews from professionals, this method is very time-consuming and often ineffective. This option is relevant if you already have a list of clients who only require delivery of catalogs and products.
2. Creating a consumer base using social networks, your own website or online store. In this case, you will need to devote less time to work, and the coverage of the audience of potential clients will be much wider. In this case, only those users who are interested in the company’s products or want to receive additional income will respond to the offer.
3. Creation contextual advertising and landing pages, sending offers to ad sites and by email.

Anyone who wants to make money in network marketing can increase their profits several times if initial stage 2-3 MLM companies will be selected at once. Thus, customers can be offered simultaneously several brands of cosmetics, as well as products intended for face and body care. This option is also beneficial because the cost of the product among competing companies differs. This allows you to select products from the desired segment for people of different income levels.

Knowing your own character

Not everyone can achieve success in network marketing. In order to earn a high income, you must have the following qualities:

• patience and stress resistance;
• sociability, which presupposes the ability to speak and then maintain a conversation with any person;
• perseverance, which will allow you to achieve your goal, sometimes returning even to places where you have already received a refusal;
• psychological skills that allow you to convince a person of the need to purchase a product;
• leadership qualities that will provide an opportunity to develop a chain of passive income;
• oratorical qualities to speak confidently, correctly and beautifully;
• the ability to plan your own time, which will allow you to avoid fuss, eliminate inconsistencies in scheduled meetings and leave yourself time for rest and self-education;
• trading skills.

A person who has the qualities listed above, applying all the rules recommended by professionals in this field, will definitely achieve success in network marketing.

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 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 functioning 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 young entrepreneur. A person who has start-up capital and has an idea of ​​an “airbag” should better consider other schemes passive income. 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, these may be 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 absence government regulation 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 the start successful sales 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 on this preparatory stage the future team member will face difficulties: he will have to be sent to the company office (fortunately, located in Russia) required set paper documents 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), products proper nutrition(in particular, instant jelly) and cosmetic preparations. 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);
   • « Quick 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. Products sold - cosmetics and bioactive supplements(dietary supplements).

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. Count on foreign business trips TianDe team member should not be 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. Field of activity - sale of products for healthy eating and getting rid of excess weight, 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% of retail sales, 25% - from wholesalers plus commission - 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 revised.
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 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. New to mandatory receives 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 bank card consultant 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, and also 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 making money in “ Siberian Health"some serious money.

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.

In view of high cost Zepter products are quite difficult to sell: 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 avoid possible disappointments, but also not 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 new direct sales agent should not invest all his money in initial or subsequent purchases, nor should he trust his superior colleagues too much. 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.

What is network marketing - the 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 allow only a few lucky people to make money.

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

Today, after reading the article, you will learn what the essence of network marketing operations is.

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

What is network marketing: 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 goods.

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

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

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

All complex things began with a banal approach.

Karl Rehnborg grew alfalfa on his property. At that moment, an idea struck his bright head:

“What if all the beneficial substances 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 goal.

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

It is interesting that out of the kindness of his heart (this cannot be explained by other reasons), Karl gave away goods just like that, without demanding any money in return.

Do you think there was an effect from promoting free useful products?

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

Carl Rehnborg came to an unexpected conclusion: if a nutritional supplement was sold at an average market price, and not just give it to friends, demand will appear.

And he hit the nail on the head!

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

Rehnborg's friends began buying his product. They no longer thought it was a cheap deception for one simple reason - it was no longer cheap.

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

They consisted of a percentage of sales of the dietary supplement. Now do you recognize how a standard network company works? That's how it all started.

The result of the work of Karl Rehnborg:

• 1934 - Carl founded the California Vitamins company, thereby expanding the range of products sold.

In 1934, Rehnborg renamed the company Nutrilite Products.

The operating principle remains the same.

A whole network of product distributors, so-called partners, has formed.

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

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

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

What is modern network marketing: terms and definitions

Network Marketing- This is one of the types of retail sales of products, based on immediate, direct interaction between sellers and consumers.

A feature of network marketing is the opportunity for each client to become a marketer.

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

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

Let's look at the main components.

The first stage of the pyramid: manufacturer – distributor

The first stage of activity under the MLM scheme is that the manufacturing company provides its products to the partner.

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

In the CIS this agreement is not included in the labor format, i.e. does not provide you with social guarantees, has special shape taxation.

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

• mandatory use of the manufacturer's products by the 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 volume.

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

Second stage: second-order partners

The whole essence of the MLM activity scheme begins with the second order.

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

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

Each participant, in the end, strives to form his own structure, since this brings real income in the form of dividends from his own sales and the activities of his “subordinates.”

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

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

Third stage: entry-level partners

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

Work at the first or second level involves manifestations of maximum activity not in selling products, but in promoting and forming one’s own structure.

An intermediate summary should be made:

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

The explanation of this process is very simple - each subsequent seller 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?

The concept of network business and MLM structures has negative associations, especially in the CIS, where people have learned from the bitter experience of financial pyramids.

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

Positive aspects of network marketing

Lack of a linear management system.

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

Close-knit team.

Each partner is interested in supporting “junior colleagues”, as this brings him financial benefits.

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

Supervision is the basis of a network business.

Possibility of constant growth.

Another positive point MLM.

Everything depends only on your abilities, including earnings.

Very significant experience in interacting with people.

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

A network business can be considered as a platform for the further implementation of your own.

Flexible schedule.

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

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

At least in the first stages of activity.

Negative aspects of network marketing

Possible destabilization of the network structure at any time.

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 the collapse of the entire structure, since many years of experience of MLM participants proves this possibility.

Uncertain payment standards.

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

The result is that the partners took out loans, pledged 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 suffered.

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 client structure expands, they also make deposits and purchase 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 participants remain without profit.

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

If you have never dealt with entrepreneurship, “stay” in the mode MLM work it will be very difficult.

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

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

A special feature of working in a network scheme is constant responsibility for one’s own work + training and control of lower-level partners.

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

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

Network marketing: choosing an employer

Your network income and confidence in stability depend on the right choice of employer.

First, we need to consider possible options for the Russian business space.

Top 5 Russian MLM market

Network company name	MLM market share (%)	Description of activity
	~30	Sale of cosmetics, pricing policy - acceptable for the middle class. Be prepared to meet a huge group of women and find your place in it. Networking activities at AVON are more suitable for girls.
	~30	Marketing area: cosmetics, souvenirs, healthy food. One of the leaders of the Swedish MLM market. The advantages include increased loyalty to your employees. Working in this network company will allow you to have a small but stable income.
	8	Stability is the most suitable word to describe the activities of the AMVAY company. The scope of marketing is from household utensils to dietary supplements. Unlike the companies mentioned above, it provides equal chances for development, regardless of the gender of the employee. This fact is a derivative of wide range offered goods.
	5	A company that only accepts women. Specialization: cosmetics, beauty care products. One of the most experienced network organizations, but still not widespread on the Russian market.
	4.5	Large manufacturer of natural cosmetics. It is one of the most progressive companies on the Russian market and has a strong base for network marketing.

The main criterion for choosing an MLM company is experience in the market. The explanation is very simple: you will get the expected result, verified by others.

Working for “newbies” in 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 from the video:

What is network marketing? After reading the article, you are already able 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% confidence - it is possible to make money working in the MLM system and you cannot argue with that.

A completely different question: will you be able to do this?

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Almost 90% of successful MLM companies present on the Russian market operate in the field of selling cosmetics and dietary supplements. We also found our customers in such categories as goods for motorists, dishes and textiles. Many of the network brands are not only known to consumers, but are also in high demand, which means it is much easier to get additional income by becoming a representative of such a network. In order to reduce risks and enter into an agreement with reliable organization, you can consider for yourself a list of network marketing companies in Russia that operate completely legally and are included in the ratings of the best in terms of product quality and terms of cooperation.

Foreign MLM companies in the Russian Federation

It is worth admitting that best companies network marketing in Russia came to the domestic market from the USA and Europe. Many of them have been working for decades, and even today you can occupy a worthy niche in the existing chain of such a network.

The first network company to appear on the domestic market in 1995. In the CIS countries, its name has become a common noun to designate all nutritional supplements for weight loss and work in the network business in general. Herbalife was founded in 1980 and today is one of the world's three largest networks. On average, annual product sales are about $4.5 billion. Income from participation in the network is generated through discounts on the purchase of products, which at the starting stage is 25%.

Official website in Russia -.

Avon

Avon

The oldest network marketing company in the world, founded in 1886 in California. It has been operating in Russia since 1991, offering cosmetics, perfumes, accessories and souvenirs. One of the three largest network companies in the world. Avon products are popular in 75 countries. Network participants are offered a linear marketing scheme, including income from individual mark-ups on products and remuneration from group turnover.

Official website in Russia - avon.ru.

Amway

Amway

The largest and most successful MLM company. Began its work in 1959 in the USA. A distinctive feature of Amway is its wide range of products, which includes various consumer goods from cosmetics and household chemicals, to bags, dishes and stationery. Amway's annual turnover is approximately $12 billion. Network participants are positioned as Independent Amway Entrepreneurs who receive the right to purchase products at a discount. In addition to earning money through mark-ups on goods, the distributor (registered as an entrepreneur with the tax authorities) can receive bonus payments for personal turnover and the turnover of the group he has attracted.

Official website in Russia - amway.ru.

The company was founded in 1963 in Texas. A special feature of this network is not only the release of high-quality and affordable cosmetics to the market, but also regular lessons for clients on skin care and makeup techniques. Thanks to this, distributors of Mary Kay products are called consultants. The annual turnover of the network is about 3 billion dollars, and the total number of consultants is more than 2.5 million people. Currently, there are about 500,000 network members registered in Russia, with almost 80% being updated throughout the year. The partnership is based on a linear marketing system. Income is generated from individual markups when selling products, as well as commissions for achieving a certain level of turnover.

Official website for citizens of the Russian Federation - marykay.ru.

The fairly well-known company Oriflame, founded in 1967, was one of the first to enter the domestic market, which today positions itself as the main one. Since 2006, in addition to service centers, production of some types of brand products has been established in Russia. Currently, there are more than 3.5 million distributors registered in this marketing network, working under a multi-level marketing scheme. The company's main products are cosmetics, perfumes and the Wellness line of nutritional supplements. IN recent years The company is actively developing in the Internet space.

Official web representation in Russia -.

Many companies involved in network marketing make attempts to enter the market with a product that is atypical for this business and is in constant demand among consumers. Perhaps the Austrian company Zepter, which began operations in 1986, did this best. The main product line is high-quality kitchenware, household appliances, medical equipment and cosmetics. Products are manufactured using our own innovative developments at six large factories located in different countries of the world. As of 2018, more than 120 representative offices of the network were registered in Russia, and more than 6 million people became the company’s clients. Zepter offers its distributors a linear marketing system.

Russian web representation -.

Young French MLM company with linear system marketing, which entered the Russian market in 2013. The main product line is natural cosmetics at an affordable price, while distributors purchase products at a 26% discount. The income of a company representative, in addition to the markup, is also formed from the turnover of the attracted group, which ranges from 3% to 21%. Distributors can also open a bureau (division), receiving additional bonuses from its turnover. At the current stage, Biosea is in a phase of active growth, which makes it attractive for building an independent career.

Official website in Russia - biosea.fr/ru.

In fact, the Farmasi company was founded in 1950, but it entered the Russian market only in 2011. The main direction is the sale of decorative cosmetics, luxury perfumes and various care products. Like many network marketing cosmetics companies, the Turkish brand Farmasi offers to earn money through markups (discounts for partners), which directly depends on sales volume. Bonuses are also paid based on the turnover of the attracted group, with the percentage of deductions depending on the level of the latter. Currently, the development of this network is experiencing intensive growth, which is due to the high quality of products and incomparably affordable prices.

Official website of the company -.

An American company that started operating in 1978. A special feature of this network is products made exclusively from Aloe Vera. At the same time, the catalog currently contains more than 150 items of complexes, cosmetics and dietary supplements. The current network of distributors acting as independent entrepreneurs of the Forever Living Products company exceeds 10 million people, but this company is still very little represented on the domestic market.

Company website for the Russian market - foreverliving.com.

Another American company working in the production of cosmetics and dietary supplements. When developing Jeunesse Global products, the main focus is on anti-aging and comprehensive rejuvenation of the body. This is a relatively young network, registered in 2009. It appeared on the domestic market only in 2014, offering distributors six options for generating income, working exclusively online. At the initial stage, the partner receives a markup on products due to a 35% discount, a reward for purchasing a starter package, as well as commissions from sales of the attracted team.

Russian version of the official website - jeunesseglobal-russia.ru.

Kyani

Kyani

The company has been operating since 2005, but entered the Russian market only in 2013. The assortment includes natural juices and vitamin complexes, including noni juice. Much of the product is made from products grown in Alaska. The company offers network partners 12 types of income, including commissions for turnover without limiting the group level. At the same time, the achieved rank of the distributor does not decrease with a decrease in turnover. Data financial indicators indicate that the annual income from the sale of Kyani products is consistently about $1 billion, which indicates the popularity of the products among consumers.

Russian version of the company's official website - kyani.com.

One of the first Russian network companies, founded under a franchise purchased in the USA in 1998. The product range includes more than 150 items, most of which are dietary supplements and cosmetics made from corals. Initially, the company's marketing plan had linear diagram, which has been supplemented with many types of bonuses and rewards over time. When registering as a distributor, a 20% discount on products is automatically provided.

Russian network marketing companies

Undoubtedly, the leader in terms of popularity of the MLM business model is the United States, but our country has also made significant progress in this direction over the past decades, introducing many high-quality products and promising cases for distributors to the world market. At the same time, the TOP network marketing companies in Russia are somewhat more diverse and include networks that work with a wide range of consumer goods, and not just dietary supplements and cosmetics.

The network began operating in 2002, setting itself the goal of becoming a leader in Russian perfumery. Ciel Parfum's strictly linear marketing plan invites distributors to profit from product markups. Moreover, in order to receive a 40% distributor discount, you must purchase one of the starter packages, costing from 25 to 75 dollars. For attracting a group and increasing turnover, the discount increases. The company's products themselves have good quality and corresponds international standards, which ensures consumer demand.

This Russian brand, using linear marketing, undoubtedly tops the ranking of network marketing companies in Russia. The network began operating in 1997 and since 2003 has reached international market, delivering goods to 42 countries around the world. Over the past years, the company has not only formed a network of 2 million distributors, but also absorbed several competing MLM companies. The main products are cosmetics, high-quality household chemicals, clothing and accessories. According to RBC, this is one of the fastest growing companies in Russia.

Network website -.

The company's main products are medical equipment and household appliances for therapy and healing. The network began its activities in 2005, and since 2009 it has received certification and permits from the Ministry of Health of the Russian Federation. Marketing strategy The company provides for a linear cooperation scheme with a distribution discount of up to 60% of the cost of goods. Bonus rewards are awarded only to first-level partners, but there are no restrictions on turnover.

Recently, a new company website has been launched - biomedis.life.

A Russian network that also works with medical equipment and, above all, devices for conducting physiotherapy at home. It was founded in 1998 and today has more than 120 large warehouses located in the CIS countries. The range includes 15 types of devices, in addition to which dietary supplements and medicinal cosmetics have been included in recent years. The marketing cooperation scheme includes several levels, which include discounts on products, commissions from personal sales and turnover of the attracted group, as well as rewards for achieving a certain rank. The company conducts very effective training sessions for new partners. Today this network is attracting more and more attention from both distributors and ordinary consumers.

We can say that this is the first domestic Internet project that has successfully combined the MLM concept and the auto industry. The network began operating in 2014 in Barnaul and today has more than 120 representative offices in various regions of Russia. The main essence of the project is to provide partner discounts for a wide range of services and goods. The network’s marketing plan is based on a matrix, which you can get into by becoming a shareholder of the project (paying an entrance fee). To stay in the matrix you need to invite 2 partners, but to receive bonuses you will need at least 7.

Official website of the project - auto-club.biz.

A domestic brand offering a wide range of health and beauty products (cosmetics, dietary supplements, perfumes, various personal care products). The network was founded in 1996 and today it is not only one of the leaders in the Russian market, but also operates in 16 largest countries Europe. The number of distributors in the network exceeds 150,000 people. The company's success is ensured not only by high-quality products, but also by a very good marketing plan, which does not require the purchase of a starter package or any investment. Also, depending on turnover, free training programs, travel at the expense of the company, a personal car and even participation in a housing program are offered.

Official website of the company - siberianhealth.com.

It has been operating since 2006, but only in last period There is active growth of the network. I started using the MLM marketing scheme in 2013. The main products are represented by health products made on the basis seaweed. When comparing network marketing companies in this product category, Werther Organic has two advantages - a more affordable cost and the use of domestic products in production. The marketing scheme for partners includes a discount for distributors, seven levels of leadership remuneration, bonuses from team turnover, affiliate programs for education, housing reform, and the transfer of achieved results by inheritance.

Internet representation of the network - vertera.org.

A perfume manufacturer from Russia, producing products strictly in accordance with GOST. Litani has been operating under the network marketing scheme since 2016, offering potential partners three opportunities to become a participant in the system (client, trainee, partner) and two options for generating income (up to 28% for the distributor’s turnover and incentives in the form of a car and tourist trips). Despite the large number of competing companies, in recent years Litani has been systematically expanding and conquering the market, making it promising direction to earn money.

Official website of the company -.

A network selling a wide range of high-quality household goods (ecological detergents and cleaning products, textiles, household appliances, car care products), operating since 1998. Despite the fact that the company is Russian, the products offered to consumers are supplied from European countries and the USA. Currently, there are more than 500,000 distributors registered in it, distributing goods in neighboring countries. A cumulative marketing plan is offered for partners, according to which you can receive discounts and earn money on retail sales, obtain a product loan, and also secure interest payments from the turnover of the attracted team.

A young Russian MLM network, operating since 2014 and characterized by stable growth. The main product is Omegaferol oil, consisting of plant components. Dietary supplements and other products for a healthy diet are also presented. The cooperation scheme offers two formats: linear when collaborating as a client (discounts on products) and binary when forming a partnership (building a balanced network).

To summarize, it is worth noting that the list of network marketing companies in Russia is regularly updated with new projects, which can also be an excellent start for you in the MLM business. On the other hand, before formalizing a partnership, it is important to analyze not only the terms of cooperation, but also the relevance of the product itself with which you will be working.