Network marketing - is it worth it? Network Marketing Pros and cons of network marketing - an overview of the main advantages and disadvantages.

Is it possible to make money online and what do you need to know before registering with a company? What are top leaders hiding behind their optimistic Instagram posts? Today I will tell you the whole truth about the NL business!

Today, one of the popular and actively developing network companies is NL International. Surely many have seen motivating posts on Instagram about how great it is to work for yourself, earn 300,000 a month and spend only 2-3 hours a day on it without investment. Is this really true? I decided to find out and try myself as a network entrepreneur!

I resisted this idea for a long time, because I internally felt that behind all this beautiful picture something was carefully hidden and the so-called businessmen were not telling me something. After weighing all the pros and cons for a long time, I finally decided to experiment, since I am an inquisitive person and I wanted to try everything on my own skin, look behind the scenes and understand the principle of this work. In addition, I am a mother of two children, so I was stimulated by the opportunity to earn additional income.

Myth #1: no investment

As in any network business, the work here is to promote the product and attract people to the company. Representatives of the NL company say that there is no need to sell anything here, there is no need to run around with catalogs and there is no need to pester friends. In essence, it turns out that every month you need to perform minimal activity in 70 points (pv), what in Russian rubles about 8,000-10,000 thousand. And the scheme is designed in such a way that, first of all, you must buy these products for personal use, in order to then recommend them to your friends.

Yes, NL specialists say that this is not an investment and you exchange one store for another, improving the quality of your life. But this is hard to believe, since the range here is not as wide as in a regular supermarket, and many products are inferior in quality to those that can be found in a hundred other stores. Therefore, I consider this point controversial.

In addition, a person who is looking for real income from the last 1000 or 100 rubles in his pocket is unlikely to be interested in such a prospect. Since the opportunity to earn at least an income 15,000 rubles It will appear, at best, after a couple of months of work and investment.

Myth #2: You don’t need to sell anything

There is no need to sell anything - this phrase can be heard from the lips of any representative of the NL company. Here we are convinced that these are not sales, but “recommendations”. You try, share your impressions, tell your friends and maybe someone will want to buy something from you. In fact, to earn my 9,000 rubles, I had to spend a lot of effort and nerves. I constantly filmed Stories for Instagram, went with my two children to the company’s office to make swatches of cosmetic products, and corresponded with my friends and subscribers.

Myth #3: It only takes 2-3 hours to work

One of the main arguments that NL specialists give you is that all you need to do is work 2-3 hours a day. This is important for me, because I am a mother of two children and physically cannot devote more time to work per day. In fact, working with NL takes up all the time: maintaining social networks, taking high-quality photos and videos, calling a list of acquaintances, meeting people in the office, collecting orders and distributing them to clients. And if you want to earn money not 10,000, but 30,000 and more, then you need to work full time.

Myth #4: No need to go to the office, work from home

When you read these rainbow posts on Instagram, it may seem like you can sit at home on the couch and make a profit from it. No! This is just a way to attract business - such messages. The leaders themselves in closed chats encourage people to go to the office in the morning and spend time there until closing time for fruitful work.

Myth No. 5: work for young mothers, extra income

Yes, you can meet a lot of young mothers in NL. Some top leaders show how happy they are working in the company and raising their children. Everything is presented as if sitting at home they have time to babysit the children and earn 200-300 thousand rubles.

But what they don’t say is that work takes up a large part of their lives, and they work tirelessly to achieve prestigious qualifications. Small children have to be left with a nanny, grandmother or non-working father. This is the other side of the coin! If you are a young mother and want to earn a decent living with NL, then you will have to devote yourself completely to work and take your children away from you.

Also, networkers say that this is additional income, and when you come to the company, you understand that this is one of the main ideas here - devote yourself to this work, quit hiring and you will be happy. I didn't like this idea either.

Cons of businessNL

I felt uncomfortable in the company for a number of reasons, now I will describe some of the disadvantages, after which everything will fall into place:

• Non-transparent business attraction To find out how everything works, you need to register and activate. Externally, the picture looks much more attractive than it actually is.
• Lots of pathos. The favorite word of NL representatives is “cool”; everything they do is cool and cool. I myself fell under the influence and automatically used these words in my posts/stories.
• The quality of products does not always coincide with adequate prices. Many items are really overpriced.
• Selling is not enough to make money, you need to pester people. Moreover, you need to make a detailed list of all your friends and call each of them to arrange a meeting. Some leaders advise not to say that this is IP, so as not to immediately scare the person away.
• Business policy will contradict my moral and ethical principles.
• NL offers get out of my comfort zone, I don’t want to leave it, I’m comfortable here.
• Constant work with negativity. NL is the only company about which I have heard so much negativity! I worked with Faberlic, Oriflame, Avon, but I haven’t heard so many negative reviews about any of them. And you have to deal with people’s objections every day, explain and prove something to someone. If the company has a good reputation, then you don’t need to spend so much effort dealing with negativity. The situation here is deplorable!
• Zombie effect. Now I understand why some call this company a cult. There really is a constant zombie effect here (or as they say here, “motivation”). Some really succumb to influence and drool from their mouths talking about how cool the company is here. I am not one of those people who is easy to convince of something, I have a personal opinion. Yes, at first I can be inspired and imbued with an idea, but then comes a period of sober thinking. Once you don’t look at chats or Instagram for a week, you lose the desire to work here at all.
• Information pressure. Closed chats do not stop all day and night, you constantly watch the feed with the leaders and their good life, their posts about how you should leave the hiring process as soon as possible, etc. By the way, when registering, one of the main conditions is to subscribe to all the company leaders on Instagram. A normal person will sooner or later simply get tired of such a flow of information flowing into the brain around the clock!

Pros of businessNL

Of course, I had more than just negative experiences with this company. There are also advantages that I cannot keep silent about:

• New acquaintances. I became more sociable and relaxed, almost the same as in my student days.
• I wanted to change the format of my Instagram, improve the quality of pictures, do photo processing. I began to shoot Stories more boldly, although before that I thought that they were not needed. I started going live, changed my profile header, and made it more impressive.
• Changed her image. I did what I had long dreamed of - a short, stylish haircut that suits me in every way.
• Set priorities and realized what is more important to me at this stage of life. I chose family, home and comfort in it, development of my own blog.

Who is the business suitable for?NL

In my opinion, a network business of this format is ideal for students, bachelors and unmarried girls, morally liberated and sociable people. If I had been offered to do NL 10 years ago, then perhaps I would have succeeded. I was unmarried, without children, a student, very sociable (I knew all the salespeople in stores by name).

I repeat once again that in the article I express my personal opinion and my view on this business. It may not match yours and that's okay. I hope that the article will be useful and will help you decide whether to start a business in partnership with the NL company or not.

Over the past 10 years, network marketing has been growing rapidly in Russia. Probably everyone who lives in large cities has encountered MLM companies at least once. The most famous and largest of them on the Russian market are AVON and Amwey. But there are many other smaller ones. Let's take a closer look at what network marketing is.

Network marketing is a strategy for selling goods by building a developed independent distribution network of sales agents who, in addition to selling goods, can attract new partners and give them similar rights. In network marketing, income always comes from not only personal sales of goods, but also from sales made by your referrals (sales agents attracted by you). Network marketing is often called multi-level marketing or MLM (multilevel marketing, MLM).

From the outside, network marketing looks like this - you look for clients in all possible ways: through friends, on the Internet, in shopping centers, in general, you use the method of active sales. Your task is to find someone who will buy your product. Moreover, it is desirable for a person to “get hooked” on this product and buy it constantly, and even better, for him to start selling it himself. The more products you sell with your referrals, the more you will earn. Many people believe that they can work actively for several years, create their own dealer network, and then enjoy passive income. But in fact, it is extremely difficult to achieve stable passive income, and working in network marketing itself implies that you always need to actively offer your product.

What product is sold through a network marketing system?

With the help of network marketing, they usually sell general consumer goods that can be offered to everyone. Through network marketing they sell: cosmetics, food, various bio supplements and vitamins, household chemicals. In general, these products are not very different from what is available in regular stores. Sales are achieved due to the fact that sellers are result-oriented and have good knowledge. In addition, some of the goods are purchased by the participants themselves and their friends and relatives.

Pros and cons of network marketing for sellers.

What are the advantages of network marketing for the seller himself? And is it worth doing? When you are attracted to work for online companies, you are promised many benefits, but you should not take everything at face value.

Perhaps the main advantage of network marketing is that network marketing is a certain school of life, you will learn to look at things differently, you will develop a business approach. You will not only learn how to sell a product, but also acquire communication skills with completely different people. You will be much more relaxed in communication, you will not be at all afraid to approach a person on the street and start selling him something. In general, these skills will be useful to any person who develops himself and wants to achieve something in life. I advise everyone who wants to start their own business to work in network marketing.

You will learn to plan your own time. You are given freedom, which everyone uses in their own way. Not everyone is able to plan their day so as to achieve maximum sales and have time to relax. You won't have a boss, an alarm clock or a clear schedule. This freedom, of course, is not suitable for everyone; if you understand that you do not have the proper responsibility, then you probably shouldn’t go into network marketing.

Network marketing is an opportunity to have additional income. If your job allows it, then you can do network marketing in your free time. This will be a good addition to your salary. Most people do just that. Additionally, network marketing is great for students.

The disadvantages of network marketing include the lack of stability of earnings. You will not have a salary, sick leave, vacation pay and all the other benefits of working as an employee. In addition, frequent payments to MLM companies are not made officially, without paying tax.

What companies are engaged in network marketing in Russia.

As mentioned above, there are quite a lot of companies in Russia that are engaged in network marketing. In total, according to official data, there are more than 500 such companies. Here are the most famous of them:

1. Amway (Amway, Amway) - 450 items of high-quality Amway products to ensure proper nutrition, beauty and household care.
2. Herbalife International RS (Herbalife) - Products for balanced nutrition, well-being and personal care.
3. Mary Kay - Cosmetics, perfumes, skin care products.
4. Nikken - A wide range of products for a healthy lifestyle: a healthy sleep system, a water filtration and optimization system, an air purification and ionization system, matnite technologies.
5. Oriflame Cosmetics (Oriflame) - Natural Swedish cosmetics. Ingredients and inspiration from nature. Facial and body care products, perfumes, decorative cosmetics, accessories. The formulas of cosmetic products are developed using the latest achievements in the field of cosmetology.
6. Tupperware - High-quality plastic tableware.
7. Avon Beauty Products Company (Avon) - Perfumes, cosmetics, accessories, jewelry.
8. Aquasource - High quality natural nutritional supplements and 100% natural skin care products without chemical preservatives.
9. Si El perfume (Siel) - Perfumes, cosmeceutical products and decorative cosmetics.
10. INFINUM Holding (Infinum) - Cosmeceutical and cosmetic products, perfumes, dietary supplements, insurance and financial services.
11. Nu Skin Enterprises (Nu Skin) - Cosmetics and dietary supplements.
12. Faberlic - Cosmetics, decorative cosmetics, perfumes, dietary supplements.

All these companies have a fairly rich history and extensive experience in running online business. The product they sell is quite popular and is in constant demand. If you decide to try yourself in network marketing, it is better to start cooperating with companies from this list. I’ll say right away that this does not mean that other companies are somehow worse. It’s just that these articles are better known personally to the author of the article.

Where does the “notoriety” of network marketing come from?

Many residents of our homeland consider network companies to be scammers and are not inclined to trust their business. First of all, this is due to the fact that network marketing began to actively develop after the 90s. When a lot of financial pyramid scams spread across the country. For many years they have been showing on TV how the population is being robbed by those who offer to earn extra money by first buying something or attracting friends. Indeed, the channels for disseminating information about financial pyramids and network marketing are very similar, but there are also distinctive features. First of all, a financial pyramid cannot exist in the long term (maximum 3-5 years, usually less than a year); network companies have successfully existed for decades.

How to distinguish network marketing from a financial pyramid?

Recently, the creators of financial pyramids are increasingly trying to disguise themselves as network marketing activities. Unfortunately, Russian legislation and executive power suppress the activities of such companies, as a rule, when there are already hundreds, and sometimes thousands, of deceived people. How to distinguish network marketing from a financial pyramid:

1. Product. Look at what product the company sells; be especially wary of companies selling non-material products. The product must be useful to the client, it must have all the relevant certificates.
2. Product price. The price of the product should not be increased several times. For example, if you are offered to sell a certain program, there are many free analogues in terms of functionality and properties. And in order for you to start selling it, you must buy it yourself from the beginning for 15 tr. This is a clear sign of a financial pyramid.
3. Is it possible to sell your product over and over again to the same customer. All MLM companies count on long-term cooperation with the client, and not on a one-time sale of a dubious product.
4. If your initial goal is not to sell a product, but to look for new referrals, you can only receive profit from attracting them. In financial pyramids, as a rule, they don’t spend much time on the product at all; they tell you more about how and where to look for new referrals and about your future profit from them.
5. Lifespan of the company. If a company has existed on the market of your country for more than 5 years, then most likely it is not a financial pyramid.
6. White ZP. In a financial pyramid they will never offer to whitewash your income. Moreover, often the organization itself is not registered at all or is registered under the guise of another activity. Although this has rarely happened lately.

Hello! Today we’ll talk about network marketing. We will just tell you about it, but this does not mean that we encourage you to do it. This article is just a review of the tool, nothing more.

It is difficult to say what network marketing is in a nutshell. Some people call this earning scheme a real “scam”; others talk about the only opportunity to open your own business without investing tens of thousands in its development. This article will collect the most detailed information, after considering which you will come to certain conclusions and decide for yourself whether it is worth looking for a job in network marketing or whether it is better to leave this area to others.

What is network marketing and what is its essence?

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

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

Network Marketing - Pyramid

Some people compare network marketing to financial pyramids. Yes, the scheme is a little similar, but in the case of network marketing, no one forces a person to invest huge amounts of money and just sit and wait for a miracle. If you work, constantly increasing your base, you can first break even, and then turn into a plus. Unfortunately, in large networks you will already be too far from the top, so you shouldn’t expect exorbitant fees and life in the Maldives, but a couple of tens of thousands in salary increases is quite possible.

Network marketing system and principles of its functioning

• Any network system must somehow serve the distribution of a product, good, or specific service that a company or group of people provides;
• If the flow of goods or services stops for even a few days, money stops flowing and the system collapses completely;
• There must be many representatives of the lowest level in the system, because otherwise the scheme makes no sense at all.

If you decide to get into network marketing

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

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

After this, the work itself begins. That is, a constant search for new sellers whom you can connect to the network after yourself and make a profit from them. The money is received after the goods are sold, but some companies additionally set a certain payment day, before which it is impossible to receive the full amount. In the latter case, you should strain yourself - often these are scammers who work for a couple of months, after which they disappear along with the money they earned, leaving behind an empty office and a girl manager in a pre-heart attack state.

How to make money from network marketing

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

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

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

Network marketing on the Internet

If possible, you can sell goods. Or a website to attract people. True, this will require certain resources, and promotion will take a lot of time (unless, of course, you are an expert in).

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

Are people today interested in network marketing?

Despite the large number of standard “scams” ​​and a small percentage of truly successful people, everyone who surfs the Internet has at least once thought about this way of making money. Modern leaders in network marketing, such as Oriflame, Avon, Faberlic, Vision, Amway, LR, Tian De and Siberian Health, still make it into the top queries, according to a special service that determines which words and in what quantities and combinations users usually Google.

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

Pros of Network Marketing

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

Cons of Network Marketing

• Earnings are completely unstable. No one guarantees you that that woman who bought all the goods you purchased this month will do the same next month. If you suddenly get sick, miss a meeting with a client, or simply don’t like someone, you’ve lost money and now you won’t get it back. In general, this is a rather inconvenient scheme that requires constant work and saving in an emergency reserve.
• The moral burden associated with constant communication with clients. Even if you are extremely sociable and friendly, people will not always be happy to see you. Not all potential clients with whom you communicate will behave appropriately, and if you gather in person for a meeting, you may get injured or damaged equipment and goods.
• Material investments at all stages. They may be insignificant, but this is not so important - the main thing is that you still have to spend money. And it’s not a fact that the purchased product will pay for itself, so at first distributors try to buy something that they themselves will be able to use later. A few thousand rubles is the normal price to start a career in network marketing. If they are not currently available, we suggest that you familiarize yourself with the information.
• Responsibility for the people whom you invited to work according to the same scheme. In principle, if a person’s moral principles are not the highest, he may not pay attention to this point. So, he will train a couple of people and forget about them until they leave and his income drops a little.

Myths and fictions about network marketing

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

Myth: The network is the best way to quickly and practically without initial capital open your own business, stopping working “for someone else.”

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

Myth: Online shoppers love it when products are offered to them by online retailers rather than official stores.

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

Myth: The whole world will soon abandon trading through regular stores and switch to online trading.

Reality: Pure nonsense. Companies of this kind appeared in the United States in the early 1960s, and until now even a percentage of all sales are not sales in networks. Thus, in the near future you don’t have to worry about regular trading.

Myth: With the help of network marketing, you will free up a lot of time, you will be able to change your lifestyle and just be happy.

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

Myth: Trading online allows you to maintain peace of mind.

Reality: There is absolutely no connection. Moreover, if you are a fairly irritable person and cannot calmly respond to rudeness and remark, any call to clients will most likely bring you out of your state of mental balance.

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

Reality: Now let’s imagine ourselves in the place of such a person: he has lived a conscious life, choosing the means and things that are convenient for him, and then bam - a salesman comes who offers to throw the years of selection into the trash and start buying completely different, untested products.

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

Reality: No no and one more time no. Selling in the initial stages will require a lot of time, which many people probably don’t have. At the same time, you will have to look further, since combining network marketing with your main job is simply unrealistic - if you want to get at least something.

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

Reality: Many people play on this, saying “why work for someone if you can open a business right now.” Remember, business and network marketing are different concepts, and such a scheme is unlikely to have anything to do with personal freedom.

What to do if you are still interested in network marketing

Criteria for choosing a network company

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

• The product they offer. It should be safe and reasonably affordable so that people can buy it without going broke. Of course, there is a possibility that you will want to sell the same product as very expensive and high quality, but this will be on your conscience.
• Company age. If it was organized a week ago, then the likelihood that this is another scam, after which the organizers will disappear into the sunset with your money, is very high. The most reliable companies are those that have been operating on the market for at least 5 years. This criterion allows us to filter out financial pyramids: a financial pyramid, even the most organized one, will not last five years. Unscrupulous network companies squeeze all the juice out of users in the first five years and also stop working; in the rest, you can try to make money (although the competition will be much more serious).
• Marketing plan. It's best to compare it to plans from other companies you choose to consider. Compensation payments through the network are the most important thing; you should find out about the conditions of accumulation and payment first of all.
• Training in the basics of distribution work. A very important point: if they demand payment from you, then most likely you will not be able to do any work with them. It’s the same if the imposed courses do not help in any way, but simply take up time. Just stop going to them, and if suddenly they refuse to pay you without taking courses, get out of there - no one guarantees that after training you will be paid what you earned.
• Fame matters too. If a company is known in at least three countries, it means it is more reliable than a company with the same characteristics, but without representative offices in other countries.
• Legality of the company. If you cannot find a full-fledged representative office (not an office for a day with poor repairs) or an official website, then feel free to break all ties with the company, because nothing good will come from such cooperation. Be sure to check the site for functionality and content: if it was created a long time ago and is updated periodically, then everything is in order.
• Good team. If you see that these people are really passionate about the idea, and are actively involved in sales, and not just pretending to interest you, if their pages on social networks are more like real ones than advertising, then you can trust them. Remember: you don’t need to evaluate a team during the first meeting; it is advisable to at least learn a little about them before the interview and take a closer look later.

Independent rating of network marketing companies

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

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

And now more details about each company.

Amway

An international company offering customers more than five hundred types of products that allow them to maintain beauty and health at the proper level. At the same time, the quality of each unit of goods is strictly controlled, which is rare among network companies in principle.

Features of work

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

This company is a real example of how people can earn money without actually leaving their home. Of course, you won’t be able to achieve the same thing in a couple of weeks, but if you advertise yourself properly and find regular customers, you’ll get a good increase in your basic income.

Avon

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

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

Features of work

Cooperation with the company can be carried out on two bases:

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

Herbalife

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

Features of work

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

Mary Kay

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

Features of work

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

Vorwerk

This company, unlike the ones listed above, is in no way associated with cosmetics and body care. The catalogs present appliances, kitchen equipment, etc. There are representative offices in more than 60 countries around the world, and in Russia specifically, similar products have been available for purchase for more than ten years, so the company’s reliability is at a high level.

Features of work

• If a person has just started working in a similar direction and does not quite understand what they want from him, the company provides the opportunity to take good free courses, thanks to which even beginners understand the scheme very quickly;
• No one monitors the implementation of the plan; the consultant himself decides when and how much he should work. Of course, only a percentage of sales is paid.

Natura

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

Features of work

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

Unsuccessful examples of network companies

You must understand that there are different types of network marketing, and not all systems work as they should. This list contains several examples that show that not all areas are suitable for network marketing, and not all organizers can organize the required level of work.

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

How not to break down and work

A few final tips:

• Always find out complete information about the product you are going to offer to customers.
• Don’t advertise everything at once, let the buyer get used to you, explain what you do, find out about preferences and only then start the presentation.
• Watch your appearance and manners. People who look bad tend to sell much less.
• Practice. Read books, attend trainings, do everything to become more confident and calm.
• Analyze your mistakes and don’t be afraid to ask more experienced friends for advice.
• Don't neglect the Internet. There is a great opportunity to advertise yourself and your product.
• Find your sales method, and under no circumstances bring aggression into it. If the seller starts to put pressure, people feel it and almost immediately “merge”.
• Do not under any circumstances spoil your relationships with loved ones, friends and colleagues. You can stop being interested in network marketing, and then your entire team will forget about you - but the people who were with you before all this will no longer be able to treat you the same way.
• If possible, use the products yourself. Make additional advertising in this way - believe me, potential clients will be interested.

Results

So, let's summarize briefly. First off: be extremely careful. Never get involved in an initiative if you don’t like it, never pay money if you are not sure of the integrity of the company, etc.

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

If you suddenly fail to earn the expected money, try to think: yes, you can make money in network marketing, but for this you need to have a special mindset and attitude. Perhaps it's just not your thing? There are people who cannot bring themselves to do mathematics - and this kind of work is simply not suitable for you.

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

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 your own business without initially investing 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 a special way of 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, 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, there are certain things you need to pay attention to. 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 online earnings that is questionable 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 a personal account, the use of which is impossible without paying a subscription fee. Where can you find this type 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 best starting option is a well-known brand. 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 of well-known brands has already been occupied by other distributors. 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 a person has about a 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.

Receiving 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 of attracting customers. 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 has a very large circle of relatives and acquaintances 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 of 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 at the initial stage 2-3 MLM companies are 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.

Often, most job advertisements are offers from network marketing companies. So, according to some data, about 3 million Russians are involved in this business. Network marketing sells jewelry, books, cosmetics and other small items. In other words, these companies sell ordinary consumer goods. Network marketing flourishes precisely in those countries where there is very high unemployment among people with higher education. Russia is one of these countries. Working in network marketing, you will need to do a lot: you will need to constantly and endlessly offer your product, often receiving a negative reaction.

Network marketing is based on the fact that people offer their friends, colleagues and acquaintances the products of a particular company. Avon, Oriflame, Mary Key, Amway and many other companies work this way. Network marketing is a rather controversial phenomenon. Distributors, distributors working in these companies vying with each other to praise network marketing and are confident that this is one of the best ways to get rich. Many people are sure that there is nothing good in network marketing, since there are already quite a lot of people who are doing this. In addition, many believe that in this way you can lose friends and acquaintances, since a person working in such sales becomes a robot and the only thing he needs from his friends is for them to buy something from him.

There are two ways to work in network marketing:

1. Distribute products among friends and acquaintances.

2. Look for new distributors and train them in their work.

In this business there is the following formula for success - learn to work yourself, teach those you attracted to work to work, teach these people to train the next generations of distributors.

In order for such a job to be profitable, you must have certain character traits. Firstly, you must be very sociable, you must have the ability to sell anything and even what people often don’t want to buy. Often you will need to sell expensive goods that are not particularly necessary. Do not forget that there will be many competitors around - these are other distributors of the same company as you and products of other network companies. In addition, the products of ordinary non-network companies will be a serious competitor for you. When working in a network company, you must have a lot of enthusiasm and energy, you must really like these products - then you can convince another person of their attractiveness. In addition, you need to be able to easily tolerate rejection - people can often reject you quite rudely. Don’t forget about a large reserve of patience and a reserve of financial strength. The latter is necessary because, despite the assurances of people recruiting into this business, working in a network company you will be able to achieve more or less significant success only after half a year or even a year. When deciding to work as a distributor in a network company, think about who you will offer these products to. If you do not have a wide circle of good acquaintances and friends, then it is not worth the risk.

But here are the character traits of those who cannot succeed in network marketing: shyness, modesty, sensitivity, excessive tact. And also this is a person who does not have too much ability to persuade, not an eloquent person.