Little secrets of network marketing. What is network marketing? About the principles of MLM work without embellishment, facts and myths. Slow or no business growth

Business ideas: working on the Internet

You are burning with a great desire to work Business ideas: working on the Internet at home. To do this, I will show you business ideas: working on the Internet. This is one of the most popular areas of business on the Internet.
If you are a student, then this is a great way additional income. And later you can become an Internet entrepreneur.

There are many ways to make money on the Internet, but each method requires that you have a computer with an uninterrupted connection and high-speed Internet. You can earn money from blogs, from affiliate programs, from social networks, from sales of information business and from other directions.

In most cases in business, working on the Internet, in order to make money, you must decide on the topic. In order to carry out work on the Internet, you need to understand what topic you will connect your activities with? What niche do you need to enter? I’ll tell you a secret that you approach this issue very, very seriously. It is best to choose a topic that matches your hobby. Then for you, doing business on the Internet will be simply a pleasure. Believe me. Because I got myself into a lot of trouble with this.

Business and work on the Internet are accessible even to schoolchildren

Nowadays, even a schoolchild can make money on the Internet. Likewise, you must learn to use the major search engines. You will be the best if you find keywords with minimal competition, and therefore you will get much better ranking opportunities. Working on the Internet will become your constant source of income, for example in the form of finances such as earnings from Adsense.

Next, to work on the Internet, you will need to choose a good hosting and register your Domain name to start your website. Then you write unique articles according to your niche and publish them on your website.

It should be noted that knowledge of the technical aspects of maintaining a website is not at all necessary.

I recommend that you invest in your training, and in the creation of a website, at your discretion. Now there are a lot of different schools on website building on the Internet, both paid and free. By taking paid courses, your education will be more effective and your business will move faster. And the site becomes your property.

And here your actions can be expanded to greater possibilities. Work on the Internet can be carried out individually or in a team. If you wish, you can teach training courses, conduct seminars and webinars, as well as forums. You can withdraw the money you earn through the web money or Yandex money system.

In general, I want to tell you that business ideas: working on the Internet is very promising.

Imagine that in the morning you don’t have to run to work and get stuck in these traffic jams. Every morning, do not see the dissatisfied face of your boss and listen to unfounded reproaches from him. You set your own working hours according to your convenience.

In short, all the advantages of this business on the face. I wish you success and prosperity in your business.

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

What is network marketing?

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

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

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

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

What is network marketing: historical background

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

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

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

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

All complex things began with a banal approach.

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

“What if all the beneficial substances from alfalfa can be converted into an edible form for humans, so that its intake can increase the vitamin tone of the body?”

Undoubtedly, Karl had a good goal.

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

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

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

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

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

And he hit the nail on the head!

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

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

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

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

The result of the work of Karl Rehnborg:

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

In 1934, Rehnborg renamed the company Nutrilite Products.

The operating principle remains the same.

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

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

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

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

What is modern network marketing: terms and definitions

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

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

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

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

Let's look at the main components.

The first stage of the pyramid: manufacturer – distributor

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

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

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

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

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

Second stage: second-order partners

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

Each partner who was invited by the participant for more than high level(1st stage), performs all the same functions as his supervisor.

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

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

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

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

Third stage: entry-level partners

Lower-level partners differ from founders only in that they have less income. Wherein functional responsibilities, as MLM units, are unchanged.

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

An interim summary should be made:

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

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

Network marketing - is it that simple?

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

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

Positive aspects of network marketing

Lack of a linear management system.

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

Close-knit team.

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

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

Supervision is the basis of a network business.

Possibility of constant growth.

Another positive aspect of MLM.

Everything depends only on your abilities, including earnings.

Very significant experience in interacting with people.

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

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

Flexible schedule.

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

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

At least in the first stages of activity.

Negative aspects of network marketing

Possible destabilization of the network structure at any time.

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

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

Uncertain payment standards.

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

The result is that the partners took out loans, pledged property, and the company paid less than 25% of the announced amount.

It's not hard to guess which one material damage clients received.

Opportunity to get into a financial pyramid.

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

Several months pass, the customer structure expands, they also make deposits and purchase products.

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

The company is closing...

In this situation, approximately 50% of participants remain without profit.

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

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

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

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

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

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

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

Network marketing: choosing an employer

From the right choice The employer depends on your network income and confidence in stability.

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

Top 5 Russian MLM market

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

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

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

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

Network marketing evokes a subjective attitude in every reader.

Only one thing can be said with 100% confidence - it is possible to make money working in the MLM system and you cannot argue with that.

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

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Glad to welcome the audience! I think it's time to discuss network marketing, because I often get asked if I have tried to work in this field. I actually received more than one offer, so I figured out the intricacies. Thanks to this, I will tell you in detail about MLM: what it is, what principles underlie it, and most importantly, how gullible clients and employees are deceived.

What is MLM: definition, abbreviation decoding

MLM companies operate on the principle of network marketing, when products are sold not through stores, but through distributors. Distributors in this scheme not only sell goods: attracting new people becomes an important part.

The product is sold at the company's office, at the client's home or at work. After making a purchase, the person is asked to sign a contract and “open his own business.” In practice, this means selling products and attracting other distributors. Remuneration is calculated depending on the level in the system, the amount of sales and the number of referred distributors.

Why was the scheme called MLM? The abbreviation comes from the English multilevel marketing (MLM). A similar principle is used well-known companies: Avon, Oriflame, NL International.

The history of the development of MLM business and its legality

About the time of occurrence network projects there are disputes. It is known that schemes with elements of such marketing existed in the 1920s, and their homeland was the United States. The activity gained momentum until the law intervened. Currently, restrictions have been introduced in 6 states:

1. Distributors have the right to sever relations with the company. If they want to return the product, the company is obliged to buy it back at a price that is at least 90% of the original price.
2. When attracting new members, you cannot promise a certain level of income.
3. The ban also included a condition obliging the distributor to purchase goods for a specified amount on a monthly basis.
4. The law does not allow schemes where the distributor makes money solely by attracting new participants.

In the Russian Federation and the countries of the former CIS, the activities of network companies are not regulated in this way. As a result, distributors find themselves without money and with huge stocks of goods on hand. To compensate for losses, they are forced to lure acquaintances, relatives, colleagues and simply subscribers into in social networks.

MLM companies in Russia can be represented by foreign or domestic brands, but none of them have produced a truly successful businessman - except for the founder!

How MLM works: principles and essence

The marketing principles of MLM are attractive due to their apparent simplicity. The company produces goods at its own factories, then develops a business plan: it includes the required level of sales and a system for encouraging distributors. According to the companies, after concluding a contract, you can simply receive points for purchased products or engage in distribution among friends. Let's figure out together what is really being offered to you.

MLM from the company side: words and reality

Although you have learned the definition of the term, you are more interested in the practical implementation of the principles. What do they look like in reality?

Network companies declare that they set the following goals:

1. Product price reduction. According to statements, savings are achieved through hand-to-hand sales. Without the costs of advertising and renting premises, it would not be difficult to cope with the task, but in fact the goods are sold at several times inflated prices (the emphasis is on “eliteness”).
2. Providing quality products. When selling through stores, there is a risk of counterfeits, which is excluded in online business. But the quality in fact raises complaints: just study the reviews of the “Flying Swallow” or food products from NL International. Some products still earned praise from consumers, for example, lines from Amway. But the stories of distributors who give presentations should be taken critically.
3. Improving the product delivery system. According to the companies, control over logistics and storage conditions relieves the buyer of inconvenience. In fact, the principle is violated. After all, distributors know: the client cannot be given time to think about the purchase. Otherwise, he will look for reviews, find cheaper options, and simply realize that a biological supplement or miracle cream is not needed. For this reason, the distributor keeps a stock of the product on hand; if necessary, he can borrow it from his colleagues. As a result, storage and transportation conditions are far from ideal.
4. Improving the distribution of financial flows. Due to the lack of advertising costs, funds are spent on business development and encouraging distributors. But when you get acquainted with the working conditions, you will understand that such options bring more losses than profits. After all, managers, in order to gain the necessary points from sales, purchase products themselves. You will be convinced of this by watching a video where a network marketing representative admits: he pours in his own money, and then forces his relatives to make acquisitions.

Buying products distributed over the Internet should be approached critically. Some companies offer worthwhile goods: according to reviews, cosmetics from Avon or Oriflame have long remained a budget but acceptable option. Zepter produces good products, although the price-quality ratio remains questionable. But most MLM companies sell a dubious product at an inflated cost, and selling it is problematic.

MLM from the consumer side

On the consumer side, a product distributed through networks can be a convenient option. Just scroll through the catalog, place an order, and the products will be with you in a few days! But there are some disadvantages, which include:

• overpriced;
• obsessiveness of distributors (the meeting with the manager will not be forgotten soon!);
• ineffectiveness and even harm of products, especially in the field of sports nutrition.

The convenience of shopping should be assessed in each case: the identity of the distributor, the cost of the product, and the availability of shares play a role.

Network marketing from the distributor side

According to assurances, multi-level marketing is a chance to open a business when there is no starting capital. The word “business” is generally repeated like a mantra, along with “partnership” and “the company is giving away a free Mercedes” (I’ll talk about that later). What do they forget to mention when trying to persuade you to sign a contract?

Work in MLM without injecting your own funds into initial stage impossible! Several years ago, the amount of mandatory monthly purchases from NL International was 9 thousand rubles. Coercion was justified as follows: “How to distribute without trying the product?” But sellers in a bookstore are not obliged to read every brochure, and in a bakery they are not obliged to try all the contents of the store! Apparently, the networkers decided not to adopt their experience.

You will have to hold constant meetings, pushing people to buy. Sales are good if you work as a trainer and recommend sports nutrition. Women in the beauty industry can also sell cosmetics. I will not say that a good instructor makes money from personal training and will not risk his reputation by recommending harmful powders. Let's focus on the question of where you will distribute the products.

I’ll tell you a secret: during the trainings you will be taught how to call relatives and friends. According to assurances, you need to contact everyone you have seen at least once and spam everywhere. Perhaps during your training you will be convinced that selling useless food for weight loss or fructose marmalade is a chance to better life, and everyone deserves a chance. But the real point is to get your friends and family hooked on dubious products. Do you want that?

Basic principles of relations between the company and distributors

The relationship between the manufacturer and distributors is determined by state legislation. They are based on a contract, which is not a form of employment. Consequently, no salary is paid, and you will not be provided with a minimum level of income. But after the stories of top managers, it’s simply inconvenient to ask such questions: you are promised a free car as a bonus, and you ask about some little things that interest those who work “for their uncle”! As a result o social guarantees you can forget.

Requirements for distributors

Requirements for distributors vary depending on the company, but generally stipulate the need to purchase a certain amount of goods and make sales above the agreed amount. Often, mandatory attendance at trainings is added, where you will be taught the principles of work.

Advantages and disadvantages of MLM and working in network companies

I learned about the pros and cons of the option from my own experience, since I recently got caught in the NL International network. I’ll say right away what I noted:

1. The advantages include product design. The owners of the company spared no expense in developing the site, which makes an impression upon first meeting.
2. The disadvantages include the need for purchases in the amount of 8,000 rubles. monthly. But the main disadvantage will be the inflated price of a product that does not please with its properties: I agree to buy quality, but the products are simply not worth the money. I was also surprised by the so-called “ free schedule”, in which there are no days off. And the peak was the promise of that same auto bonus! Interested in this attraction of unprecedented generosity, I decided to find out. And I found out that managers with high performance the entire team actually gets a Mercedes. But not as a gift, as they assure you, but as a lease. This means that the car is rented, and after the agreed payment period becomes the property. The problem is that you will have to meet a very high sales quota, otherwise the fees will fall on you. If you don't make a plan within a few months, the Mercedes is taken away. That is, they impose a loan on you for an expensive item, depriving you of the opportunity to choose an option that suits your pocket.

Having shared the main impressions, I proceed to a detailed story.

How I got caught in the net

One day, while exploring Instagram, I found a page of a successful person, with interesting photos and fascinating stories. At the end there was often the phrase: “If you want to get on the team, write to Telegram.” I don’t miss the opportunity to expand my horizons, so I contacted the person and set up a meeting, which was postponed due to his business trip. Finally, I arrived at the address and ended up in an office located on the 3rd floor of the shopping center.

At this stage, it became clear that I was faced with a network business. I listened to stories about how you can make money without going to the store for groceries, but by shopping in NL. In general, purchase goods worth 8,000 rubles every month. and get back 980 rubles, which you can spend only on their products. Then they told me that this is not a network business, a completely different level and earnings, they promised a Mercedes... everything is standard.

I left, but they didn’t leave me alone. A month later, when I forgot about this story, a new subscriber appeared. He had a topic that was interesting to me, training on street horizontal bars. We started talking about sports, and eventually met in real life. Then he persuaded me to sign a contract and switch to NL products - sports nutrition.

It was necessary to master the introductory and training blocks of information, and then pass the exam. When I did it, I was added to the newbie chat. Here I learned the news that to activate the contract you need to buy products for 4,000 rubles, and then another for the same amount. The money scam had already begun, but I decided to try nutrition: get in shape and see what I could sell people.

I took a complex for losing weight in 25 days, which is offered to clients with “excess fat.” Distributors say that the price is 3,700 rubles, but then it turns out that for the effect you will need additional course costing 4,000 rubles. They hide from the buyer that the full set will cost 7,700 rubles. But that’s not the point! And the fact is that after 15 days of use, I realized: and 100 rubles. - high price for such a product.

How I parted ways with NL International

When I stopped making purchases and attracting clients, my mentor became nervous. The chat was filled with recommendations from top managers sharing their experiences (on deceiving customers). But I didn’t place a new order and simply left the chat. The result? Calls to mobile phone from a mentor. I calmly outlined the situation, and in response I heard: “You were brainwashed, you yourself could not leave the business.” As a result, assurances poured in that I would regret it when I saw that I had refused the free car. The last phrase was: “If you mess up your brain, you’ll call yourself.”

My conclusions? With long-term cooperation, you risk losing money, friends and health, since the products are dubious. Later I looked at other brands, but my opinion only became stronger.

You understand what an MLM business is, but you are wondering why not recommend a miracle product to your friends. In some chains you will indeed find good products, but brands do not position their products as unique. Avon or Mary Kay present affordable lines, but you can forget about making full money with these companies. Their distributors receive, at best, an increase in their basic income.

But there are also MLM programs focused on aggressive promotion of goods. During training, they force the idea of ​​the uniqueness of the offers: “We have unique dietary supplements, other brands offer nonsense,” “Only our cleaning products are effective and environmentally friendly, unlike store-bought chemicals.” The product is introduced into a number of products with a set of miraculous properties. At the same time, they are in no hurry to announce the price, because it is unreasonably inflated.

Representatives of the MLM business assure that in the store you overpay 50-100% of the price (the numbers are taken arbitrarily). But no one admits that the premiums for products distributed through the network are even higher: the manufacturer is not going to pay bonuses out of his own pocket. The recommendations you receive are driven by a desire not to help, but to sell.

Types of MLM: what schemes work according to

MLM companies can be divided by the type of bonuses they offer:

1. The multi-stage branching model implies that the distributor reaches different stages in the development of the network. With each active distributor attracted, both the percentage received and the discount on the product increase. Then the distributor forms his own subnetwork and receives a bonus from its turnover.
2. The single-level model is similar to the previous one, but it does not provide for the separation of subnets.
3. When working according to a matrix scheme, remuneration is accrued from a limited number of attracted people. For example, with a 3x7 model, profit comes only from an option “width” of 3 distributors and “depth” of 7 levels. The option is most often associated with fraud, when the registration of newcomers “on the first line” is limited, and they are transferred to a person from a lower level.

It is believed that the marketing plans of these companies are aimed at stimulating activity and learning from experienced traders. Judge for yourself how true this is.

Business plans for MLM companies: what they represent and how not to get hooked

You will most likely hear about a business plan in the MLM field from one of your acquaintances who is actively inviting you to a meeting. If you come, it will be waiting for you standard set arguments:

• “2-3 hours a day, just use it and tell your friends”;
• “car from the company”;
• “income of 100,000 rubles. given that minimum investment at the start";
• “get started while the company is taking its first steps on the Russian market”;
• "it is better regular work and accessible to everyone."

Those who agree to try themselves in network marketing, are invited to a seminar where they go into detail. Programs may vary in detail, but the pattern remains the same: you must earn a certain number of points. Since a beginner cannot cope with the task alone, he has to attract similar sellers. From their implementation you get “group turnover”, so you urgently need to invite “energetic and active partners” to your team, luring them into “business” by hook or by crook.

Depending on the number of people involved, the status in the company is determined: in addition to ordinary managers, there are senior, “gold”, “diamond” and, finally, leaders. They can actually make good money if they started at the early stage of the network and did not hesitate to deal with ethical considerations. But the income is comparable to the profit from a medium-sized business, as is the amount of effort. If you invest so much money and effort to open a real business of your own, you will get a more stable result.

Signs of MLM: when they try to mislead you

A beginner can get into MLM in the following way:

• an old acquaintance gets in touch and offers a meeting to talk about a promising work scheme;
• you receive a message on a social network about the opportunity to start a business;
• if you advertised for a job, you are invited to an interview, but are not given the name of the company or future responsibilities.

The main feature is that they do not give you clear explanations and insist on a personal meeting. The words “MLM” or “network business” do not sound, because the information distributed on the Internet worries people.

It is not difficult to recognize deception if you know the signs:

1. If you receive a message on social media, examine the sender's page. With a 99% probability, he creates the image of an active and successful businessman. In the status you will see a loud phrase about success, in posts - discussions about changes in life, breakthroughs and the importance of motivation. Among the photographs there are many yachts and expensive cars (however, in reality they do not belong to the networker or were purchased with other income).
2. Job advertisements related to multi-level marketing do not contain clear requirements for the candidate: age or experience is not indicated. But the salary given is considered high in the region. Also, recently, MLM representatives have been writing in advertisements that they are looking for assistant managers, managers, or even storekeepers.
3. During the interview they do not mention the name of the company, talking about it as a supplier of consumer goods. The specifics of the work are not specified, limited to the phrases “it is necessary to conclude contracts, train staff, make presentations.” Then they thank you and promise to inform you of the decision by phone. As a result, you are invited to study and asked to take money to buy literature.

At the next stage, they begin to tell you about the structure in the form of a pyramid. It includes managers of different titles and levels, assigned depending on the points scored per month. The emphasis is on possible earnings- from 100,000 to 300,000 rubles. monthly. True, the person recruiting for multi-level marketing did not reach this level, but the top managers did! But you will only see them at a company party, and you will have to pay for tickets.

If you are in no hurry to conclude a contract and make a purchase, arguments like: “Do you want to start your own business?” or “Are you going to live on a miserable pension in old age?” Those who resist the increased pressure are included in the ranks of “negatives” who do not want to fully understand. True, there is still a risk that your page will later be found on social networks, and your beliefs will begin with renewed vigor.

Why is MLM associated with a financial pyramid?

On the website of multi-level marketing companies, you will see assurances that the activity has nothing to do with financial pyramids. Networkers say that it is difficult for an uninitiated person to understand, so he does not see the difference. But perhaps it simply doesn’t exist?

Features of a financial pyramid

Financial pyramids are based on the continuous attraction of participants who bring in new funds. They do not offer a product, and the profit is paid through contributions from newcomers.

Distinctive characteristics of MLM

Network marketing differs from a financial pyramid primarily in the availability of goods. This is what “recruiters” do: they position themselves as distributors involved in selling products and attracting new “partners”. Participants receive income in the form of commissions on personal sales. Points are added to them for the results achieved by the involved implementers. But practice shows that money from third-party buyers can account for only 10% of turnover.

If you look at it soberly, you will notice that the difference lies only in the availability of the product: the amounts for old distributors are paid from the money brought by newcomers. To disguise the scheme and show sales growth, mandatory purchases and levels for managers are introduced. If the distributor does not score the required number of points, he can take the products himself for the missing amount. In fact, representatives of such MLM pyramids become the main consumers of the product. Profit for the “top” is generated not through sales, but through contributions from naive newcomers.

The difference between classic and network marketing: why you can’t make money in MLM

On the websites of network companies you will see information about how much money is paid to distributors per year. Let's analyze the data: the Amway brand stated that in 2009 Ukrainian distributors received 4,028,000,000 rubles. (in terms of Russian currency). The total number of distributors was about 1 million, but this number included both “sales people” building networks and people who signed an agreement and bought goods at a discount. According to data provided during the company's promotional tour, the number of active agents is 5% of the total.

If we apply the calculations to the Ukrainian network, then the number of “sales people” will be 52,100 people. With such indicators, it is not difficult to calculate that a distributor earns 77 thousand rubles per year, and a little more than 6 thousand rubles per month. It is also necessary to take into account that the distribution does not occur evenly, because the “diamond” managers at the top of the pyramid receive a large share. You will have to deduct the cost of trips to seminars and monthly purchases from your income. It turns out that you can barely make a profit!

I'm in general outline talked about MLM: what it is, how it works, how they attract people. You can learn more about the schemes and methods of influence from the video:

Top network companies in Russia

Are all network companies some kind of pyramids? No, because a number of organizations are not aggressive marketing policy. They offer a decent product at fairly reasonable prices. Usually these are world-class brands that have been operating in the Russian Federation for several years. The rating of such companies includes:

• Oriflame;
• Avon;
• Amway;
• Mary Kay;
• Faberlic.

True, I recommend that suggestible people, teenagers, and retirees stay away from the network business in general. The rest can start collaborating: the proceeds will not be enough for a glamorous life, but you will receive a small income. Whether it is worth the time and effort is up to you to decide.

Network marketing without investment: myth or reality

One of distinctive features distributors bringing people into the “business” remains a constant embellishment. Incomes are inflated, facts are kept silent, achievements are exaggerated. For this reason, proposals need to be approached critically, but the network business industry uses already proven arguments. What should you remember so as not to lose your head at the sight of free Mercedes and glamorous photos?

What awaits a beginner: is it worth trying?

The main argument of potential “mentors” is that if you try, you have nothing to lose. Let's start with the fact that this is not true: you lose money spent on monthly mandatory purchases. You will also have to attract people in the same ways that you were lured. That is, you will need to tell friends and relatives fairy tales about the sweet life and convince them to buy expensive products.

Ask yourself whether you want to convince your mother or sister that marmalade costs 1,600 rubles. per kilogram - is this what she was missing in her life? If your family could afford such purchases, you would not be looking for sources of additional income.

Representatives of network marketing are engaged in substitution of concepts: they call product distributors “partners,” and higher-level managers who receive profit from sales made by others are “mentors.” The activity of distributing dietary supplements or cosmetics is called “business,” although you have probably seen would-be businessmen selling products on the street from trays.

If a distributor of a network company says that he earned 70 thousand rubles, this means that in fact he has 30 thousand, and 40 thousand are in a virtual account. You can only spend them on purchasing brand products.

How to earn your first money

The pitfall of network marketing is that the first money, although small, is relatively easy to earn. If you call everyone on your list, you will probably persuade several people to make a purchase. Young people with big amount friends looking for a part-time job will even bring 5-6 “partners” into a team where they will “do business.” For a couple of weeks everything is fine, and you are imbued with confidence in your imminent success.

At this time there is a powerful impact on adherents. Let me give an example of the argumentation of LR Health & Beauty with typical answers to questions from newcomers:

1. If you're in such chic company, why aren't you rich?“I started working recently because I considered my chance. And I’m giving you the opportunity to get rich, come join me.”
2. Why do you have to pay so much to join? Why should you make a contribution?“The company cannot take risks, what if you change your mind tomorrow? In addition, all businessmen make investments at the starting stage. It costs several million to open a kiosk, but here you have to pay 3 thousand rubles!”
3. What guarantees do you provide?“The best guarantees are your perseverance and faith in success!” (The networkers will play on this, remember the moment.)
4. If the product is good, why isn't it sold in the store?“So as not to spend money on advertising. Personal recommendations work better.” (In fact, the product will not withstand open competition; the price is too high.)

Having learned to juggle with cliche phrases, you and your like-minded people will start distributing it. It should be noted that in the first month the turnover is easy, but due to the personal purchases of the participants. In the future, you exhaust the potential of your surroundings, and it is difficult to attract outside clients. Spam begins on social networks, calls to friends, even trips to the shopping center with catalogs.

How system participants are attracted and retained

At this stage, your hands begin to give up, but the “mentors” claim that you are not active enough. Not wanting to put an end to their undertaking, “businessmen” continue to make purchases for own funds, which often leads to deterioration of relations with relatives. As a result, even the most stubborn people notice that the injection of money amounts to tens of thousands, but there is still no success. Disappointment sets in, especially terrible against the background of the previous euphoria from the prospects of a glamorous life. What makes the situation worse?

It's your own fault. You are not persistent enough. You don't believe in success and want to give up.

Remember what they told you about guarantees? “Mentors” will assure you for as long as possible that you need to try harder: your stay in the system means new purchases, which brings additional points to your superiors. When people finally assess the situation, the financial injection already amounts to tens of thousands of rubles. If you spend money on Professional Development in your specialty, then improve your financial situation without network sales.

How to choose a company to start

If you still intend to try yourself in MLM, study reviews online. Do not be fooled by the fact that negative impressions are shared by people who do not want to work! Take a sober look at the situation, study the composition of the product, compare prices with similar products offline. Only if you are confident in the quality and justified cost, get down to business. Also determine how much you are willing to invest and stick to your decision.

Review the list of companies you are interested in and determine which one meets the following criteria:

• no entry fee;
• without obligatory repurchase of products for a certain amount;
• without necessarily attracting new distributors.

Simply put, look for conditions that benefit you, not the company, and failures will be avoided.

What you need to make money in network marketing: the reality behind the promises

A common technique used by MLM brands in campaigning is the substitution of concepts and values. I have already said that networkers love to use beautiful words: “partners”, “mentors”, “their own business”, etc. As a counterbalance, they cite working “for someone else”, although in essence they are the same distributors of other people’s products as sellers On the market. Of course, you won’t hear this from any networker. Let's figure out together what is hidden behind the common slogans:

1. “Have a goal and a dream” means that you are weaned from critical perception. After all, newcomers who have retained the remnants of independent thinking begin to notice inconsistencies between facts and reality. After endless injections of money, burnout sets in: you were told about the geometric growth of income, but you received only losses. Then the “mentors” talk about your lack of determination. But a real businessman, even a beginner, knows how to admit mistakes. If you want to succeed, learn to think independently and, if necessary, close projects that don’t take off.
2. “Learn and develop” is my favorite slogan for networkers, because it means “pay money to participate in trainings.” In many MLM companies, selling tickets to seminars helps the top of the pyramid make a good profit.
3. “Keep a list of acquaintances” in practice means “write down the details of any person you meet and try to sell him at least something.” Don't be surprised if, after a few months of persistent activity, you have fewer friends.
4. “Consult with the sponsorship line” - higher-level “mentor” managers will push you to more persistently recommend the company’s product. After all, they don’t care that your relatives spend money on unnecessary purchases, and friends who took you at your word borrow money for the entrance fee.

MLM companies base their activities on a person’s pursuit of a dream, and the product is secondary in them. At the same time, bonuses are not received a large number of participants at the top of the pyramid. Remember this, learn to see what is hidden behind the ostentatious success, and you will not be deceived.

Why MLM is dangerous: reviews and real experience

If you understand the basics of the functioning of the business sphere, then stories about earning millions in a couple of hours a day will not make an impression. But the main clientele of such networks is made up of suggestible people with life problems, teenagers and old people. Understand what an MLM business is and how to behave with a person who decides to participate in it.

If a teenager is involved in MLM

The official age at which you can participate in network companies in the Russian Federation is 16 years. Companies, in particular cosmetics, are taking advantage of this - Oriflame is launching an entire campaign to attract teenage girls. Tech is handled by a unit of managers with pedagogical and psychological education. After all, the malleability of a teenager’s unformed views, combined with his energy, gives a good return - for “mentors.” In addition, girls have a great need to find an idol, and parents are not perceived in this capacity.

What should relatives do? First of all, forget the phrases: “Are you going to make money from this?”, “You won’t succeed,” and “I forbid it.” They will build a wall of misunderstanding, the teenager will decide to prove he is right, and in the future he will be afraid to admit mistakes.

You are faced with the following tasks:

1. Destroy the insurmountable wall between wonderful world network earnings and other people. The opposition between “us and them” is consciously cultivated in MLM, so go with your teenager to a meeting and get to know the mentors. You don't need to tell them about your life or work - they will use the information against you. You can’t argue either, they will beat you on their own territory. Just get to know them and listen to their stories. After the meeting, your child will definitely ask you about his impressions. The review should be neutral, slightly negative: “I won’t say that I liked Maria... it was interesting about cosmetics.” This will allow the “mentor” to be transferred from the rank of celestials to the ranks of ordinary people.
2. Gradually lead your child to the idea that cosmetics are not exclusive. Proceed with caution when asking questions about ingredients. In a friendly tone, say that you compared products from Oriflame and another company and found no difference. Then ask your teen to help you figure it out. Do not focus your attention under any circumstances, forget the phrase: “I told you so”! Over time, the child will understand that the product is average.

The main thing that lures teenagers into online organizations is the idea that other people lead boring, gray lives. Therefore, you need not to lecture, not to prohibit, but to show by example that you can succeed without MLM companies. Take your teenager on trips, organize interesting meetings, help to take the first steps in the field of other earnings. This is more difficult than shouting and banning, but the effect is incomparable!

Conclusion

Is it possible to make money in MLM? My own experience led me to study the topic in depth and understand how the field functions. It’s impossible to tell everything in one article, but I came to the conclusion: if the word “ethical” means anything to you, you won’t make money. To obtain significant income, you will need to sell low-quality goods at high price, and also recommend it to people who trust you. Instead of taking photos in front of other people's cars and spending money on seminars, engage in self-development: master useful skills and grow professionally. And then your success will be real!

With the development of the Internet, MLM can be said to have received a rebirth. Unexplored markets have emerged for selling products and recruiting distributors, opportunities for advertising MLM companies, new channels for communication and other effective tools for successful work in network marketing. But at the same time, even many MLM business gurus have a complete misunderstanding of the essence of network marketing, and often their work slides towards banal fraud. What can we say about newcomers in such a situation? But now you have this article in which we will look at the basic principles of MLM companies, as well as the myths and real facts associated with this type of business.

Passive income. Financial freedom and independence. Own business. MLM on autopilot short time. Personal growth. Thousands of dollars a month for a couple of hours of work a day.

Loud slogans. Neat people in representative suits. Checks with impressive amounts of earnings of top leaders. All these are external manifestations of network marketing. What's the point? Let's start by defining basic terms and concepts.

MLM(abbreviated from English. multilevel marketing) or network marketing- process sales of goods and services through a network of independent sales agents ( distributors). Each distributor, in turn, has the right to create its own network of distributors to sell goods and services. The income of network participants is formed from the profit that is obtained after the personal sale of the company’s MLM products, as well as in the form of bonuses, which are usually awarded depending on the sales volumes of your partners.

Key word in definition above sale of goods and services . Sales are most often direct, otherwise it is simply unprofitable due to the specifics of the products offered. If your sponsor- the person who invited you to his network claims that you do not need to engage in sales, then you are not in an honest MLM company, but in a fraudulent structure.

What is the sale of goods? There is a lot of room for creativity and maneuvers, sell as much as you can, but mostly it’s direct sales. Only the ability to distribute products through traditional retail network shops. With the release of MLM companies in global network It became possible to work through partner online stores. At the same time, your customers and distributors order and pay for products via the Internet and, in principle, you do not have to personally contact them.

Features of network marketing using the example of MLM company Amway

Now let's understand everything in more detail. For example, let's take a company Amway(Amway), which began operating in the USA more than 50 years ago in 1959. It came to Russia in 2005, selling household chemicals, cosmetics, dietary supplements, kitchenware and accessories.

How do you attract partners? You are invited to offline presentations, home meetings or online webinars where they talk about the company, the opportunities it provides for your future business, and the marketing plan. Marketing plan— this is a description of the working conditions in an MLM company, the scheme for the distribution of bonuses and compensation. The emphasis is on the exclusive qualities of the company's products and the ability to build your own own business. For clarity, I suggest watching the presentation marketing plan Amway company.

The presentation is conducted by Amway Independent Entrepreneur (IBO) platinum level Olga Lomakova.

A good presentation, composed competently, all the sharp corners were carefully smoothed out. They remember R. Kiyosaki, the main ideologist of financial independence, passive income and cash flows. They talk about cheating by intermediaries. Success, happiness, financial freedom, dreams come true - a large number beautiful words. Particular emphasis is placed on “big business”. Building your own network of partners. It was not for nothing that I wrote partners, and not simple distributors. In this case it is important point, in which lies a certain contradiction. An MLM company makes profit only from sales of its goods and services. There is no and cannot be any additional profit from expanding the network of partners without sales.

A typical diagram is drawn on the board that explains the principles of work of the Amway company with its partners - Amway independent entrepreneurs (IBOs). According to legend, you can receive up to 60% of the company’s profit, which in the traditional scheme goes to pay for the services of many intermediaries such as transport companies, wholesale resellers and retail chains.

From another video I cut out a more visual diagram of the work, which I completed and brought to its logical conclusion :-).

(1) - traditional work scheme. Manufacturer - Various Intermediaries - Consumer.

(2) - a work plan that recruiters and network marketing representatives tell you about. You take the place of intermediaries and build your business on this. Manufacturer - Legal Entity - Consumer.

(3) - a real scheme of how an MLM business works. In reality, you are only replacing the last link in the chain. Instead of working with retail stores, you are given catalogs and bags of company products and you must distribute them to your customers.

See for yourself. You cannot do without importers; someone must import products to a specific country; you personally cannot cope with this task effectively. Unless you remember the 90s and start working as a shuttle. Yes, this will still be unprofitable, since it will be more convenient and cheaper to deliver goods by trucks and wagons.

Wholesalers are a link that cannot be excluded from the overall chain. A large consignment of goods has been brought, it is impossible to instantly sell and deliver it to customers, therefore warehouses are needed for temporary storage.

And all you have to do is engage in direct sales. Also, thanks to the efforts of partners, you can significantly save on advertising. This is what your potential income comes from. Now they will object to me: “What about bonuses for attracted partners?” Leadership rewards do exist, they are formed from the same company savings on advertising, retail stores and only when selling real goods and services.

I wrote “your income” above, that’s right, there is no mistake there. Profit = income - expenses. Expenses are the purchase price plus the cost of your efforts and time to attract partners and personal sales of goods and services.

And what do adherents from the MLM business tell us:

In fact, there is no profit from personal consumption of the network company’s products, only losses. Why? Because the price of “the best goods in the world” is usually several times higher than their regular counterparts. retail stores.

The inflated price means additional profit for the company. Even if you save 30% as a partner, you will still be at a loss, since the price is initially 200-300% higher. Why is this done? Very simple. It doesn’t matter what the price of the product is, distributors will still strain and sell it to people. This is why the products of MLM companies cannot be found on the shelves of regular retail stores; they are simply uncompetitive.

There is no need to spend money on modernizing production to increase its efficiency and to optimize company costs. Everything will be covered by the increased margin, and you can even practice if you wish. handmade. This will only be an additional fact of the elite nature of the company's products. Isn't it an ideal scheme of work?

How much and who really earns in the MLM business?

• Of course owners and founders of MLM companies. I think there is no need to give detailed comments here. The most common business is selling goods and services. Plus selling to your partners starter packages, manuals and promotional materials.
• Sellers of dreams and success. These are people who have joined some network company; they are not involved in sales. Even the recruitment process itself is not the main thing for them. They earn more from their personal training manuals, trainings and webinars. They have a large team of partners, or better yet followers, who love to learn. Such people constantly lack motivation, and they try to gain it through various trainings and seminars. Coaches and trainers easily move from company to company and bring their structure with them. This allows them to achieve incredible success in quickly building a network, which can be an excellent example to confirm the quality of the author’s methods. In fact, the effectiveness of such a structure in terms of sales is not very high. But still, this scheme allows you to earn additional money from leadership bonuses.
• Top leaders, who were among the first to start cooperating with the company and managed to assemble a large team of partners in an unoccupied market. There are not many such people compared to the total number of distributors. Many top leaders stop directly engaging in sales and recruiting and move into the category of salespeople of dreams and success, because they understand that this is much more profitable than spending time and effort on building and maintaining their network of partners.
• Ordinary leaders and distributors can often work at a negative rate. It seems like they are getting their bonuses. But bonuses are income, not profit! It is imperative to correctly take into account the time and effort that was expended to achieve current results. It is also worth including the costs of educational materials and benefits.

7 main myths of MLM business and network marketing

1) We are the best, we have the best product.

You will hear these words constantly and from all companies, regardless of how things actually are. In fact, the product, as I wrote above, for a number of reasons may not have any outstanding properties. Without this, particularly persistent partners will be able to sell it. There is also such an expression as: “the product is so good that it sells itself.” If this were true, then there would be no need to sell it to your friends through direct sales. They would bring the truck to the local market and sell everything straight from it without any problems.

The same can be said about the team and leaders. Top, best, No. 1 and the like. But the main indicator is not words, but results, or rather, not personal results, but the success of your team. To achieve good results, you will have to work a lot and there simply won’t be any energy left for loud slogans.

2) You don't have to sell, no direct sales.

Not only is this a myth, it also contradicts the definition of network marketing. There is no network business without direct sales. In an honest company, profit is generated from the sale of goods and services. Even if you can build your structure from super-duper business partners, who will sell?

No, there is, of course, an option when some companies pay commissions on the sale of starter packages, but this case is closer to rather than traditional MLM. In addition, with such a work scheme, it will not be possible to achieve a large and stable income, since the pyramid will collapse sooner or later.

The leader of the structure must have his own direct sales experience. He should teach this to his distributors. Of course, to expand your network, you need, in addition to sales skills, to have techniques for effectively attracting partners. But these two directions should be developed simultaneously. The network must be self-reproducing and selling. It is your sponsor who should give you specific techniques and practical schemes for effective sales and recruiting. And not just stuff you with loud empty phrases and motivational videos. There will be no sales based on motivation alone, and therefore no income. We need real schemes and techniques that are currently working.

3) Your business is on autopilot. We will do everything for you.

Why then are you needed? If everything can work without you? Probably so that you can sell starter packs and products for personal consumption and make money from it. Remember! No one will work for you. No one will pay you anything for beautiful eyes. You must have sales, only from them comes income.

Attracting active partners and building a sales network is a very complex and time-consuming process. MLM business has been around for many years. Many people have already been burned by it, and for some it is not suitable at all. Despite assurances from sponsors, the market potential clients is narrowing and every day it is becoming more and more difficult to find new partners and people for your sales.

4) Working in MLM is your own business.

Let's start with the fact that MLM is not a business, and especially not yours. Business comes from the owners of the company. And you are an ordinary employee, a sales agent, you just work not for a fixed fee, but for a percentage of sales made personally by you or your partners. You can even register as an individual entrepreneur and start paying taxes and other government fees. But it still won’t become a business. Owning your own business requires that you own any assets: movable and immovable property, shares, rights to trade marks, factories, newspapers and ships. But you have nothing like that.

You have no freedom to make decisions. You work according to clear rules that are given to you by top sponsors (upline), and you cannot deviate from them. Your structure is also not yours as such, it largely belongs to the company itself, just like personal accounts, numbers, and partnership agreements were concluded not with you, but with the MLM company.

Your only asset is your name and reputation. It is on developing your brand that you need to constantly work. If you have a name that you can trust, then your partners will follow you if you suddenly want to change MLM company.

5) MLM business is available to everyone.

Another trick to lure newcomers and freebie lovers into your network. Network marketing is hard work that requires certain skills and abilities. Yes, you can learn a lot, there are no special educational requirements. But MLM is not for everyone. Network marketing and the principles of its work should please a potential partner.

High-profile success stories of ordinary people are often cited as proof of this statement. But usually there are not many of these examples; they are constantly repeated, instead of showing their personal results. And why? Because this very result simply does not exist, especially if your sponsor has not been involved in sales on his own, and he is a newbie like you. It’s funny when a person who has never done it himself and generally understands little in this area tries to teach you business.

6) The main reason for your failures is lack of motivation.

This myth was invented by worthless sponsors who have not achieved impressive results and cannot teach you anything accordingly. Telling a person that he lacks motivation is the easiest way to put all the blame for failure on him. Moreover, you can still earn money from this, since the sponsor will send you to another motivating training, and he will receive his own commission for it. In fact main reason your failures are a mediocre coach. Either he cannot give you the knowledge and skills necessary for a successful start, or he simply made a mistake when he invited you to the MLM business, since such an activity is completely unsuitable for you.

7) Passive and residual income.

There is neither one nor the other in MLM. You must constantly work to expand the network of your distributors and support the activities of your partners. At a minimum, you must constantly be an example, a motivator and a generator of new effective ideas for your team. Without this, your structure will quickly wither and disintegrate. Network marketing is a continuous daily work. Master classes, presentations, webinars and direct sales.

Network marketing on the Internet: business concept + 6 myths + 8 pros and 4 against + 5 popular MLM companies + 5 parameters for choosing a network company + 5 signs of fraud + tips for beginners + instructions on how to become a distributor (using the example of Oriflame) + 8 attraction tools partners + recommendations for entrepreneurs.

With the popularization of the World Wide Web, almost any entrepreneurial activity has been transformed into an Internet business. Product promotion methods, ordering methods, product delivery - everything is now focused on virtual space.

Thus, many companies began to work under the MLM scheme. Network marketing on the Internet opens up new opportunities for their owners and is developing rapidly.

Today we will talk about how it works, why it is needed, how to open such a business, and evaluate the prospects.

Internet network marketing concept

Network marketing (MN) is a form of implementation trading activities, when sales agents establish interaction with buyers. Those. supply of goods, provision of information products from manufacturer to consumer based on a multi-level structure can be called network internet marketing.

This business tactic was first used in the 27th year of the 20th century by the American Carl Rehnborg. Today his example is followed by such well-known companies as Mary Kay, Faberlic, Avon Oriflame, Neways, Amway, etc.

Network marketing is growing at the same pace as software, telecommunications, and the Internet. In total, network companies reach a turnover of $210 billion per year. Japan is considered the leader in the development of network marketing.

The Internet has given rise to a new wave of popularity for this type of business. However, network marketing is still controversial. Many people living near the poverty line were able to achieve financial independence with its help. Others “look at the concept of network business with wolf”, mistaking it for financial pyramids and deception.

If the latter tried to understand the essence of network business, their opinion would change...

By promoting goods/services on the Internet thanks to multi-level marketing, you deprive yourself of intermediaries, who usually inflate the final cost of the product.

Network marketing is also characterized by a lack of... And this eliminates the need for expenses for sales on the Internet. advertising campaign, since products are distributed through person-to-person referrals.

MLM mission is to simplify, reduce the cost and speed up the promotion process.

Network marketing gives everyone the opportunity to build their own business on the Internet, while creating an extensive network of consumers. Anyone who develops a multi-level structure receives % of the total turnover for their activities. This is how you get passive income.

Myths Revolving Around Online Network Marketing

Before we look at how online network marketing works, let's dispel the myths that skeptics have come up with:

However, supporters of network business on the Internet also come up with many fables:

Multi-level marketing is the most best view business that is the future.

Not a single ten of the largest MLM companies on the Internet / real life For half a century of their work they have not been able to achieve a leading position.

The traditional concept of product distribution is still not inferior to the network concept. Therefore, the statement that MLM is the business of the future is wrong. Although, individual sales of goods on the Internet are truly progressive commercial activity.

Network marketing is the key to wealth and success.

You shouldn’t believe that network companies on the Internet will necessarily become a source of financial independence. If this statement were 100% true, everyone would have long ago retrained as networkers.

In practice, only a few manage to succeed. It all depends on how you take advantage of the opportunities that network marketing offers on the Internet;

MLM is an opportunity to run your own business.

If you are joining a multi-level company, it is a mistake to believe that network marketing will allow you to work exclusively for yourself.

First of all, you earn profit for her. And from this profit, she gives you a reward corresponding to your labor contribution. But this is only the case when you join an MLM company, and do not act as its founder.

How does network marketing work on the Internet?

People starting network marketing for the first time think that their earnings are influenced by the number of customers, but the key factor here is the number of distributors that we managed to attract. With their work and income, they will bring you a certain percentage of your earnings.

An MLM company operates without stores. The sale of manufactured goods occurs due to the fact that each networker attracts new buyers and sales agents. Thus, a network is built, which is why on the Internet this marketing scheme is called network.

Considering network marketing from the perspective of a person who decided to open it on the Internet, for him distinctive feature there will be, but the costs of creating a mentoring system will increase.

Those. An entrepreneur needs to allocate part of the money to vocational training. There will be expenses for promotional materials that will be used by distribution partners.

From a buyer's point of view, it has its advantages. On the Internet, network marketing gives them a guarantee of quality, reasonable prices, the opportunity to receive exclusive products, etc.

However, it is worth dwelling on the advantages and disadvantages of MLM in more detail. Those Internet users who seriously decide to engage in network marketing should know its positive and negative sides.

1) Advantages of network marketing on the Internet.

1. Training, advanced training. Network companies that value their reputation and care about profit margins necessarily provide courses and conduct seminars. Therefore, their employees are always competent, which has a good effect on earnings;
2. Free schedule. Distributors can work as much as they want (2, 5, 10 hours). If the deal you made is effective, you can rest. However, there are less fortunate days when you have to work hard.

The Direct Selling Association, operating in the United States, conducted research that found that 90% of workers in the field of network marketing devote literally 30 hours a week to work. The remaining 10% of respondents – even less (10 hours).

The dependence of the amount of earnings on your contribution. If a clerk’s salary depends on the “uncle” for whom he works, then with network marketing everything is different. There is no limitation here.

A diligent, creative and clever person is able to win over clients on the Internet and is not afraid of a large amount of work. This means that his earnings will only grow.

Creative work. Network marketing is certainly interesting and does not force you to sit in an office doing routine paperwork. You won’t be bored either online or offline with MLM.

Moreover, the sale of goods can occur offline 24/7 and without your participation. For this purpose, social networks, blogs, websites, multi-profile advertising on the Internet and other tools are used.

Expanded geographical space. Traditional multi-level marketing will not give you as many opportunities as online MLM. Using the World Wide Web, you can establish contacts with customers and attract new distributors from all over the world to the network without a personal meeting.

To communicate with partners, you can use video conferencing, chat, Skype. Moreover, such tools are available to everyone on the Internet and free of charge.

3. Friendly team, atmosphere of cohesion and mutual assistance. Since in network marketing the team is united by one goal, everyone interacts with each other. A young distributor can count on the support of more experienced colleagues.

Possibility to choose business partners, pace professional growth.

Public recognition of each distributor's achievements.

2) Disadvantages of network Internet marketing.

1. Income instability. Working on the Internet, you can actually receive both unlimited income and face lack of money. Network marketing is fickle, and in order to minimize such risks, you need to continuously increase your client base.

Rapid fatigue, nervous and emotional tension. Many sales agents find it difficult to constantly work with people and continuously communicate. Typically, distributors are viewed negatively, perceived as sales representatives trying to sell some nonsense.

Because of this, one has to face a moral burden. Some distributors cannot withstand the pressure from customers and for this reason leave the network business. But thanks to the Internet, this factor is gradually being erased. You need to be emotionally and stress-resistant.

Responsibility for wards. Those who are not familiar with responsibility for their own actions should not even attempt to work in network marketing.

This type doing business on the Internet inevitably leads to responsibility for others. If you undertake to train someone, one way or another you will have to answer for the actions of your protégés.

2. The need for cash deposits. By attracting you to network marketing via the Internet, sales agents can promise that . In reality, you will have costs, such as purchasing catalogs and the like.

Let's summarize. SM on the Internet is an activity that is beyond the capabilities of people lacking determination, patience, communication skills, the gift of persuasion, and organizational skills.

How to start doing online business on the Internet?

The listed companies specialize in the sale of cosmetic products. If you do not intend to work with this category of goods, you can choose other companies. However, the listed companies are proven, and in any case will help you gain experience and understand the basics of network marketing on the Internet.

To avoid making a mistake with your choice, pay attention directly to lifespan of the organization. If it has already taken place and has been operating on the market for more than 4-5 years, you can trust it.

No less significant degree of demand for the product. Food, cosmetics, etc. are quickly consumed, therefore, they are consumed regularly. The company's products that you choose must be useful for consumers, then they will buy them on the Internet.

In addition to the two factors mentioned, the following are also taken into account:

• Functionality, usability of the representative, its presentability.
• Availability of training, corporate assistance. A normal MLM company professionally builds a training system and motivates its employees to attend advanced training courses and trainings.
• Validity of the marketing plan, its type. Often a stepwise approach is used.

Here are the signs of scammers:

• large entry fee (starting from $100);
• absence of goods, or unjustification of it market value;
• the dependence of the amount of earnings not on turnover, but on the number of customers you bring;
• promise of quick earnings;
• lack of confirmation of purchase and sale transactions, acceptance Money and so on. in documentary form (contracts, receipts, invoices).

Each MLM organization operates in accordance with the laws of its country. Therefore, in Russia, Ukraine and a number of other states, a person can become a sales agent only upon attaining civil capacity. Those. to an individual must be at least 18 years old at the time of employment.

Basically, relationships and salary levels are not disclosed in a collective/labor contract, but are formed on a contractual basis. This deprives the distributor of the social package and other guarantees available to hired workers. The conditions fulfilled on the Internet by the distributor within the framework of network marketing are determined regulatory documents companies.

The main requirement for those wishing to become a sales agent is to sell a certain number of goods or for a specific amount.

For example, to become an Amway employee, a person must:

But Bing Han International hires on different conditions:

1. First, you contact the office of the MLM company or find its official website on the Internet to register.
2. Then you should undergo training/consultation with 2, 3... experienced specialists, buy or sell 1 unit of goods.
3. Finally, you will need to attend 5 trainings.

After, when you are hired and master the strategy of network marketing on the Internet, you need to earn your first money. To start, you have to search for 2-3 people who will purchase products from you.

If you intend to start seriously, along with searching for clients, look for partners who will be interested in MLM. With their involvement, you will increase your income, because the network will expand, and from each of its branches you are entitled to some kind of reward.

Theory is theory, but it is much easier to understand the principles of network marketing on the Internet on practical example, Truth? Then, let's not put it off for a long time!

How to become a distributor in a network company (using Oriflame as an example)?

Many people who decide to work in network marketing rather than as employees begin their activities with Oriflame. But only those individuals who demonstrate personal development, gaining experience and knowledge, ready for time and financial costs.

In order to have a diligent team of distributors, Oriflame provides each employee with the following benefits:

Working system network company has been tested for decades. Today, an Oriflame employee does not need to run around with acquaintances and friends with a catalog under his arm, persuading them to prescribe any cosmetic product. All network marketing work can be done on the Internet. Moreover, whether the income will be additional or primary depends on you.

As with any other type of network marketing, it is important to create your team at the beginning of your activity. You need to use the Internet to attract new people who will help you increase product sales (you will learn about ways to attract new people in the next section).

Invited users receive not only their benefits, but also their benefits. For example, the opportunity to purchase goods at a 20 percent discount. The recruited team of people chooses on what principle it will work in network marketing - via the Internet or offline.

Anyone can become an Oriflame distributor, but at the same time he must have the following qualities:

• hard work;
• focus on success;
• perseverance;
• communication skills;
• belief own strength;
• determination;
• Internet access.

Network business in Oriflame is available to women on maternity leave, retired citizens, students, and housewives.

1. What do you need to work in the Oriflame network company?

You can run an online business on the Internet according to your free schedule. This method of work is convenient and provides more opportunities to increase income. This type of employment will allow you to earn a monthly salary of $1,000. And that’s not the limit.

In the company’s network system, there are no bosses who would cut your salary or deduct money from it for any needs. Therefore, the size of your profit is affected only by your personal activity on the Internet.

Start by registering. Follow this link https://www.oriflame.ru/business-opportunity/become-consultant. You will see a registration form that you need to fill out:

Activate your account via email.

A letter will again be sent to your mailbox, where you will be notified of the personal number assigned to you and the sponsor to which you are attached.

The sponsor is your personal mentor. He will coordinate your actions and help you succeed. If necessary, you can contact him for advice.

You can get immediate income from sales. To do this, you need to show people an electronic catalog on the Internet and motivate them to buy cosmetic products. You can create this log by going to the " Sales support».


Give it a name and click on the “Save” button.

The profile displays all the necessary information for running an online business with Oriflame:

• trade turnover,
• History of orders,
• receiving awards and achievements.

If you are going to register a new consultant, you will need to do this through this tab.

After clicking on the appropriate button, an online form will open in front of you, similar to the one you previously filled out. Here you need to enter the details of the invited person, indicate his/her email so that he/she receives the letter.

Further actions are now small. The person who received the newsletter must activate registration using the access parameters that were sent to him by email:

Thus, when working with Oriflame on the Internet, you make a profit from the sale of cosmetic products. Since distributors are offered lower prices, your income is the difference between the catalog price and the consultant price.

You can build such a structure even from a small number of consultants invited by you. When you master this yourself key moment in marketing, you can teach this to your students, who in turn will teach the people they attract.

As a result, a strong network system will be formed that will bring you additional income.

You also have the following benefits:

2. How much money do network business employees at Oriflame receive?

To receive money earned from an online company via the Internet, you will need to register as individual entrepreneur.

Since Oriflame works transparently, employees’ salaries are paid by bank transfer. Therefore, to withdraw money from your account, you must be an entrepreneur and subsequently pay taxes.

Let's calculate the costs:

• Registration on the website of a network company will cost you 149 rubles. This amount will be included in your first order. Sometimes promotions are held, due to which the registration fee can be reduced to 10 rubles.

Registration in the Oriflame network business does not oblige you to place an order or distribute the product. You do everything as you wish. A company consultant is an independent distributor, which implies freedom of action and independence.

• To register an individual entrepreneur, you will need to pay a state fee of 800 rubles.

If you sum up all expenses, you get 949 rubles.

Of course, you will also have to pay for all orders. However, the money for it will be returned by your customers upon receipt of the product.

Now about income. As a beginner consultant, you can earn an average of 5-15 thousand rubles only from direct sales on the Internet. If you assemble a team, the reward will be formed by the network company depending on the amount of your partners’ orders and will vary between 3-22%.

For example, a partner has a turnover of 12 thousand rubles. or 450 BB (points). According to the bonus table, this is 6%. You are entitled to the difference: 22%-6% = 16%. Now you need to calculate how much 16% of 12 thousand rubles will be. - it turns out 1920 rubles.

You are entitled to such income per person under the above conditions. What if there are, say, 10 partners with similar success? Network income will be 19.2 thousand rubles!

8 ways to attract new business partners in online network marketing

You should not lure people on the Internet to network marketing by inventing new fables. It is also inappropriate to entice with the range and quality of goods. The range is expanding, the quality is improving - this picture is ubiquitous, it is already considered the norm, and not an advantage, so this argument is no longer relevant.

It is best to show a potential partner the prospects and opportunities that he will receive by working in network marketing via the Internet. Tell him about the advantages and disadvantages (that’s why we listed them in this article), show him the ease of use.

On the Internet, to attract future employees, MLM companies use:

• Websites. Your own resource is the most optimal and reliable option. It makes sense to create it if you have the ability to fill it with content. Articles should not only cover issues about network marketing on the Internet, but also be geared towards SEO promotion.
• Thematic forums– an effective method of finding companions. It is necessary to communicate on platforms dedicated to the topic of making money on the Internet.
• Groups and accounts on social networks. On these sites, you have the opportunity to post information about your MLM company in other people’s communities and those created by yourself.
• Mailings. Relying only on this method is inappropriate. Many will ignore your emails, marking them as spam. Therefore, treat him as just additional tool.
• Boxes and similar services. CPAs, for a fee, will help you find new distributors into your network marketing structure. There are a large number of users registered on them who want to find a job.
• Contextual, banner advertising. On third-party websites on the Internet you can buy contextual ads or banners, which, thanks to their colorful design and clever slogan, will help you find caring people.
• Youtube channels. In the 21st century, people are losing the habit of reading; video hosting sites, where you can have fun and earn money, are gaining more and more popularity. It's convenient and effective method attracting new clients, training existing sales agents.
• Resources for finding available vacancies, etc. On web platforms where people are looking for a part-time job or main source of income, those who are interested in your ad are guaranteed to appear.

You can attract clients and new distributors from the Internet without personal communication only when you have already established yourself as a network marketing worker, have created a certain team, having previously selected target audience interested in how to improve their financial situation.

At the initial stage, communication is necessary. Moreover: you will teach your new partners what you yourself have learned.

8 recommendations for online network marketing for beginners

1. If you want to achieve success much faster than expected, don't sit idly by. It is necessary to improve yourself, read relevant literature, and not be ashamed to adopt the experience of experienced networkers.
2. Do not neglect a thorough study of the product and its properties. You must be prepared when a customer asks you about product specifications. Otherwise, you won't see any sales. And don’t even think about lying to get more money!
3. It is necessary to strive not only to conduct trade, but also to develop your own network on the Internet. This is perhaps one of the most important rules of successful network marketing.
4. Promote products online and search for partners using as many available tools and techniques as possible.
5. Feel the fine line between attraction and imposition. If you see that this or that Internet user does not show interest in you, stop spoiling his and your nerves.
6. Be patient and see everything through to the end even when you encounter failures. Don’t think that if someone you know couldn’t achieve good results in network marketing using the Internet, then the same situation will happen to you.
7. Plan your time correctly. After all, a free schedule gives you freedom of action. Use the formula “first the important, then the urgent.” Rational time planning is the key to the success of any activity, including network marketing.
8. Learn original approaches, be bright, extraordinary and charismatic. People are drawn to those with such qualities. This can be felt even on the Internet, where personal acquaintance is not provided. This way you will increase your rating, increase sales, for which you will be pleasantly rewarded.

How to create your own network business on the Internet?

We figured out how to become a distributor and the next steps. But what about those who want to open their own network marketing on the Internet?

Firstly, such people should already have a company that sells goods own production or products from another brand. In any case, there should be no complaints about the quality of the goods. Their cost also plays an important role.

Are you okay with the quality and range of products? Then you can enlist the support of competent distributors and create your own network.

Be sure to create a royalty system for your distributors so that it benefits not only you, but also them. You should take care of a good training and incentive system for newcomers to the ranks of networkers. After all, the level of profit depends on their ability to attract clients and employees to your network company.

At this point, it is important for you, as a “leader”, to try to develop leadership skills. It’s good when you have something to sell and to whom, and you have staff. However, if you are not a motivator, your online network marketing will stall.

Only with leadership abilities can it be possible to generate a branched and strong structure.

It, in turn, should be diluted with unique technologies, its own methods of work and promotion, since the process of network marketing itself is a dynamic movement. Now it can develop, but tomorrow it can slow down and die out completely.

If you manage to spin up this “money machine”, it will soon bring you dividends. Creating a website on the Internet will help you achieve this.

It is possible to open a network company and develop it even with a small budget. You can run such a business via the Internet without interrupting your main business. entrepreneurial activity.

Where to start doing network marketing on the Internet?

You will learn about a competent start and the “Magnet” technique from the video:

Network marketing on the Internet will give you unlimited financial prospects, If you focus on building a strong team, you will earn a good reputation.

A properly developed training system, continuous support for new members, regular corporate events, taking measures to increase sales - all this will help you improve the quality of your life.

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