The number of distribution companies specializing in MLM is increasing every year. This is due to the fact that this business is profitable and quickly generates income. It’s easy to do without even leaving your home. If you study in detail the basics and concept of MLM marketing, you can achieve excellent results in just 2-3 months.

What is network marketing

MLM business is a multifaceted concept that opens up many prospects. It implies the concept of selling services and goods, based on the formation of a network of independent sales agents who not only sell products, but also have the right to attract new partners who will be endowed with similar rights. The income of each networker is formed from commissions from product sales and additional remuneration (bonuses), which directly depends on the volume of personal sales of attracted sales managers.

History of Network Marketing

Karl Rehnborg is considered the founder of the MLM business. He developed ideas that later turned into an entire industry with huge multimillion-dollar turnover. In 1927, in the USA, Rehnborg began working hard to create food additives. He distributed the developed drugs for testing purposes free of charge to his friends, who subsequently refused to take them.

After Karl realized that free things were not valued, he began selling dietary supplements: the results were not long in coming. Information about the drugs spread quickly, and the number of people interested in them increased. Karl Rehnborg could not independently satisfy the requests of all clients, so he had to come up with a new scheme. He invited his friends to provide information about dietary supplements, and on condition successful sales promised to pay commissions. History began with these events network marketing.

In 1934, the first large company California Vitamins. It operated a sales system in which the consumer of a product became its distributor. In 1939 marketing company was renamed Nature’s Sunshine Products, the principle of drug distribution remained the same. Network agents independently attracted new clients to cooperation, advised them, drew up sales plans, came up with individual sales schemes, and offered to create their own network.

The MLM company fully provided networkers with goods and paid commissions on time. This is how a new definition appeared in MLM - single-level marketing. The business story did not end there: a new round was set by the American Way Corporation (abbreviation Amway), created in 1959 former employees Nature's by Jay Van Andel and Rich de Vos.

What is the merit of these people in the development of MLM business? They began to sell not just one product, but several. The list of products offered to consumers has been expanded with food additives, chemicals for household and household goods. Soon, network marketing companies appeared on the world market. They began to operate successfully in Russia, China, and England. Their importance has become enormous both for people and for the economies of many countries.

Types of Network Marketing

The MLM business is developing rapidly, and its varieties are becoming more diverse every year. The main types of network marketing are as follows:

• Puff pastry (the most popular, adapted to the Russian market, its shining example– companies selling cosmetics – Avon Products, Faberlic, Mary Kay, Oriflame. The essence of this type of marketing is that the concept of the company is based on the work of certain layers of employees at several levels.
• Pyramid. This type of marketing involves the following scheme of work: there are founders who find several people selling services and goods, they subsequently find several more people and control their activities, and so on ad infinitum.

How does network marketing work?

The operating principle of Russian MLM companies is the same:

1. First, a person undergoes an interview, during which he is introduced to further prospects and opportunities.
2. Then the person is told that he must, using the network, attract new people, the greater their number, the greater his monthly income.
3. How does network marketing work? New employees, becoming distributors of the company, independently promote it, for which they receive commissions, contributing to their own development and the development of the business.

The essence of network marketing

What is MLM (multilevel marketing), what is its essence? This is one of the most popular and effective ways legal promotion of services and goods. MLM companies offer unique products that are becoming in demand both in individual cities, regions, countries, and throughout the world. MLM business is not only about direct sales. To succeed in this field, you don't have to sell anything.

The main components of multilevel marketing are well-organized intellectual distribution, efficient use all its possibilities and advantages. In other words, the main essence of network marketing is that consumers, being at the same time partners of a company, develop its network and make a profit from turnover.

Network Marketing Principles

MLM business is based on following rules:

• equality for all;
• helping others;
• minimum costs upon entry;
• availability of residual income;
• pyramid structure (this principle of network marketing ensures constant development business and its stability).

Network Marketing Structure

Running through the MLM business and not noticing the main thing, many never achieve the desired results. Why? Because they don’t know how to properly build a network marketing structure. What is structure? These are people who take part in organizing trade turnover, and the final income directly depends on their number. It may include acquaintances, friends, complete strangers. The main task is to skillfully unite them and constantly motivate them for successful advancement.

Network companies

There are many companies that specialize in MLM business. They sell cosmetics, chemicals, household appliances, household goods, and other products. Detailed list network companies operating successfully in Russia are listed on the Mlmbaza website, the most popular:

• Life;
• Oriflame,
• « Siberian Health»;
• Faberlic;
• Avon;
• primerica;
• Shaklee;
• Talk Fusion;
• Nevers;
• Vitamax;
• Zepter International;
• Kirby;
• Atistek;
• Lurk;
• Pravda.

Working in network marketing

Anyone can try their hand at multi-level marketing business. Companies provide training in network marketing, but not everyone can master this profession. A distributor of an MLM company must be able to organize the sale of products and draw up schemes for the effective distribution of services and goods. The profession obliges you to attract new partners, expand your client base (network), apply intellectual resources, use the network, and set up a system that will generate income directly for the company and the networker.

Network business on the Internet

The World Wide Web opens up incredible opportunities for networkers. Using her gifts, you can make a fortune without leaving your home. On the Internet, products are promoted through their own websites, information groups, blogs, and communities. The main task of the distributor is to find target audience, create an effective sales information network, constantly improve and develop it. Network business on the Internet has the following advantages:

• the ability to conduct business from anywhere globe;
• possibility of attracting potential partners from any regions, cities and countries;
• many information programs, which provide prompt assistance in the decision organizational issues, conducting education and training;
• the ability to sell through online stores with an integrated order basket;
• possibility of learning online.

How to make money in network marketing

To achieve success in this business, you need to follow several simple rules:

• be a sociable person who is not afraid to approach strangers with an offer;
• be able to interest, present products in a bright and unusual way;
• actively involve your relatives, acquaintances, and colleagues in the matter;
• constantly improve yourself, increase your intellectual level;
• skillfully build a pyramid by attracting new people in order to not only earn commissions from sales in network marketing, but also provide residual income.

Cons of Network Marketing

Before starting a career as a distributor, you need to familiarize yourself with the main disadvantages of the MLM business. This is the only way to understand how correctly the direction of activity has been chosen. List of disadvantages of network marketing:

• unstable income;
• great moral stress, constant pressure from clients;
• the need for material investments;
• high level of responsibility for the people involved.

Benefits of Network Marketing

MLM marketing has both its pros and cons. He teaches how to receive unlimited income, which depends on the aspirations and character of a person. Another advantage of network marketing is financial independence. Network agents have a free work schedule, plan their day independently, make decisions, gain new skills, the opportunity to develop socially, and improve their status. These advantages cover all the disadvantages of this type of activity.

Video: how online business works

Alexander Ivanov

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

It was founded in 1963 and, as hard as it may be to guess, was named after its founder.

The catalogs offer high-quality cosmetic products and enjoy in great demand from the Russian consumer.

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

A special feature of this MLM company is the high level of preparedness of sales agents.

They not only sell products, but also undergo preliminary training on how to use them. cosmetics and skin care, which provides professional approach and a high degree of customer confidence.

Place 6. Oriflame

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

Back then, catalogs offered only one series of products, while today the range includes over 1000 names of perfumes and cosmetic products. The turnover is 2 billion dollars a year, and there are more than 3 million pure distributors.

A distinctive feature of the company is its position as an environmentally friendly manufacturer.

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

To demonstrate its strong position, the company even publishes catalogs using materials from artificially grown plantation forests.

Place 7. FABERLIC

Well, finally, the last favorite in my rating is ours Russian company. Its founders were our compatriots, entrepreneurs Alexey Nechaev and Alexander Davankovy.

At first the company was called “Russian Line”, but in 2001, apparently deciding that this was not solid enough, it was registered as Faberlic.

To date, the brand has grown to 20 countries, including Germany, Poland, Hungary and Romania. Faberlic considers its unique feature to be developments based on perfluorocarbons, that is, a collection of oxygen cosmetics for facial skin care.

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

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

Among these I include the Switips CashBack service, the advantages of which I wrote about here in Telegraph.

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

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

P.S. I recommend paying attention to free training on Automation of cold contacts, which will help you create a System for attracting partners to your team on full autopilot online.

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, I wonder, four years later, in April 2016?

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, network marketing companies in Russia do not publicly post such data. 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 Here 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 applies to almost all 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, having encountered such companies, call the earning schemes they created 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 initial investments of large sums cash 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 as follows: 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, began 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 that marked the beginning of a new type of product distribution, the now widely known trading network Amway.

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 pyramid scheme company will require payment of membership fees or the purchase of " securities", which outside 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 doing right choice, you can 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? High level 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

Present on the Russian market large number manufacturers who sell their goods 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 the reviews of professionals, this method It takes a lot of time and is 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 advertising 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.

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 contain various options company spellings, 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 computer program Nero Vision. 🙂 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 Russian market- 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. Legally registered in Russia and selling Chinese goods the company 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 network companies, people are interested in the companies themselves, people want to do 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