Top 100 direct selling news 2018– the most significant rating for network companies. This event is awaited by many companies around the world - why?
The annual DSN Global 100 is compiled by Direct Selling News magazine. The reputation built on positive industry reports has made DSN magazine a trusted journalism resource for the direct selling industry. Since 2004, the magazine has been dedicated to the positive stories of direct selling companies, including the opportunities provided to millions of independent entrepreneurs, products and services that have helped change the lives of consumers, and the philanthropy of industry members who have consistently reached out to those in need.
Top 100 dsn 2018 is a list of the most profitable direct selling generating companies in the world for 2018.
This indicator is very important and shows the stability of the company, their growth and development.
System for building large structures in mlm business. Information from practitioners! Click to find out... | Position | Company | turnover |
| 1 | Amway | $8.60B |
| 2 | Avon Products Inc. | $5.70B |
| 3 | Herbalife | $4.40B |
| 4 | Vorwerk | $4.19B |
| 5 | Infinitus | $3.92B |
| 6 | Mary Kay | $3.25B |
| 7 | Natura | $3.09B |
| 8 | Perfect | $2.96B |
| 9 | Nu Skin | $2.28B |
| 10 | Tupperware | $2.26B |
| 11 | Coway | $2.05B |
| 12 | JoyMain | $1.58B |
| 13 | Oriflame Cosmetics | $1.537B |
| 14 | SUN HOPE | $1.536B |
| 15 | young living | $1.52B |
| 16 | Rodan + Fields | $1.50B |
| 17 | new era | $1.33B |
| 18 | Jeunesse | $1.30B |
| 19 | Pola | $1.22B |
| 20 | Ambit Energy | $1.15B |
| 21 | Belcorp | $1.14B |
| 22 | DXN Marketing Sdn Bhd | $1.10B |
| 23 | USANA Health Sciences | $1.05B |
| 24 | Longrich | $1.00B |
| 25 | Telecom Plus | $979M |
| 26 | Yanbal International | $971M |
| 27 | Isagenix | $958M |
| 28 | Market America | $820M |
| 29 | Quanjian | $786M |
| 30 | Yandi | $740M |
| 31 | Stream | $737M |
| 32 | Juice Plus | $730M |
| 33 | Team National | $719M |
| 34 | Yofoto | $696M |
| 35 | Amore Pacific | $681M |
| 36 | PM International | $632M |
| 37 | Hualin | $577M |
| 38 | Faberlic | $563M |
| 39 | Plexus | $562M |
| 40 | Arbonne International | $553M |
| 41 | Miki | $535M |
| 42 | golden days | $518M |
| 43 | advocare | $472M |
| 44 | Scentsy | $468M |
| 45 | Rolmex | $459M |
| 46 | legal shield | $457M |
| 47 | Pro Health | $400M |
| 48 | For Days | $383M |
| 49 | Nature's Sunshine | $342M |
| 50 | Resgreen | $326M |
| 51 | 4Life Research | $316M |
| 52 | Monat Global | $314M |
| 53 | Apollo | $296M |
| 54 | LG Household & Healthcare | $292M |
| 55 | Family Heritage Life | $284M |
| 56 | OPTAVIA / Medifast, Inc. | $257M |
| 57 | Hy-Cite Enterprises, LLC | $253M |
| 58 | Alphay | $252M |
| 59 | noevir | $250M |
| 60 | CUTCO/Vector Marketing | $245M |
| 61 | Best World Int'l Ltd | $237M |
| 62 | Alpha | $222M |
| 62 | AnRan | $222M |
| 64 | Menard | $221M |
| 65 | Southwestern Advantage | $219M |
| 66 | pure romance | $218M |
| 67 | Pruvit | $214M |
| 68 | Norland | $207M |
| 69 | KK Assuran | $205M |
| 70 | green leaf | $201M |
| 71 | New Image Group | $200.815M |
| 72 | SEACRET | $200.007M |
| 73 | Life Vantage | $200.000M |
| 74 | NHT Global | $198M |
| 75 | Merro | $192M |
| 76 | Giffarine Skyline Unity Co. | $179.0M |
| 77 | princess house | $178.9M |
| 78 | ARIIX | $178.0M |
| 79 | Cosway | $177.9M |
| 80 | Kangli | $177.6M |
| 81 | Mannatech | $176.7M |
| 82 | BearCere'Ju | $169M |
| 83 | World Global Network | $165M |
| 84 | Charles | $161M |
| 85 | Vida Divina | $153M |
| 86 | Marketing Personal | $147M |
| 87 | Diana | $144.5M |
| 88 | Ideality | $143.6M |
| 89 | youngevity | $142M |
| 90 | Fuxion Biotech | $141M |
| 91 | Naris | $138M |
| 92 | Vestige Marketing | $127M |
| 93 | Jimon | $118M |
| 93 | Tiens | $118M |
| 95 | Naturally Plus | $111M |
| 96 | Usborn Books & More | $107M |
| 97 | Kasly Ju | $104M |
| 98 | Immunotec Research Ltd | $102M |
| 99 | Xyngular | $100M |
| 100 | ZURVITA | $94M |
Traditionally, on the first Sunday of December, Russia celebrates Networker's Day - a holiday for everyone involved in network marketing and direct sales. On this occasion, we decided to recall the most famous MLM companies and understand whether multilevel marketing is a serious competitor to retail.
Strong link
Multilevel marketing (MLM) is one of the methods of direct sales. With it, the sale of goods is carried out through a network of independent agents, each of which can not only sell the company's products, but also attract partners for this. At the same time, his income will be made up of his own revenue and a percentage of the revenue of the people he hires. Another name for the system is Network Marketing, which translates as "network marketing".
Profit from direct sales for distributors is quite low. They give most of the proceeds to the company and to higher-ranking distributors. The main profit comes from the sales of sponsored distributors.
MLM companies are often confused with pyramid schemes like MMM or Khoper Invest. Indeed, the "pyramids" took the principle of network marketing as a basis.
The participants who stand at their origins receive money from the contributions of "newbies". But, unlike network companies, "pyramids" do not offer specific goods, but in fact trade in air. The life cycle of "financial pyramids", as a rule, is no more than a few years - they exist only as long as new investors appear. While large MLM companies have been successfully operating for decades, bringing small but stable incomes to the lower levels, and billions to those who are at the source.
Pioneer Carl Rehnborg
The history of the creation of MLM companies is associated with the name of the entrepreneur Karl Rehnborg. In 1927, he opened a small firm selling food additives of his own production. At first, Rehnborg sold products to acquaintances, who, in turn, shared rave reviews with their friends.
And there were those who wanted to. In 1934, Carl Rehnborg founded California Vitamins, which was later renamed Nutrilite Products. Very quickly, the company reached a turnover of several million dollars, without spending a single cent on advertising - only through direct sales.
To this day, nutritional supplements and cosmetics remain the most popular products sold through MLM marketing.
AMWAY
Amway (American Way of Life) was founded in 1959 by Nutrilite Products employees Richard DeVos and Jay Van Endela. They decided to slightly change the principles of work that Nutrilite used. First, Amway began to sell different groups of goods. In addition to dietary supplements, a variety of household chemicals and cosmetics appeared in the assortment. Now the company offers over 3000 items. Secondly, DeVos and Van Endela introduced a multi-level marketing plan for employees and began to pay remuneration not only from personally attracted distributors, but also for sales volumes of agents of all levels. This led to the rapid growth of Amway.
Now the company's turnover is over 8 billion dollars, and it ranks 25th among the largest private companies in the US according to Forbes. True, the history of Amway is not cloudless. More than once she became a participant in scandals. So, one of the former top distributors of the company, Eric Scheibeler, who is personally acquainted with the founders of Amway, in the book "Deceitful Merchants" accused the corporation of fraud and called it a totalitarian sect. This is not the first accusation of "Amveevites" of sectarianism. The training methods used in the company have been criticized more than once.
AVON PRODUCTS
The "long-liver" among MLM companies dates back to 1886 with a small firm called California Perfume. It was created by American David McConnell. Initially, the company's assortment included only 5 types of simple perfumes with floral aromas. Now AVON offers hundreds of cosmetics, perfumes, jewelry and accessories. The company's turnover is about 10 billion dollars a year, and the number of distributors around the world is in the millions.
Why McConnell is not considered a pioneer in the creation of MLM enterprises - history is silent. Perhaps the fact is that the company, although it used the principle of direct sales from the beginning of its existence, did not immediately come to a multi-level scheme. But the company AVON went down in history by being the first of the cosmetic giants to refuse to test products on animals.
Mary Kay
Another American corporation. Created in 1963 by Mary Kay Ash and named after the founder. It offers hygiene products, cosmetics and perfumes of the middle price segment. Ranked 6th in the world among direct selling companies in 2012.
Mary Kay's "chip" is that its consultants do not just sell products, but act as "beauty consultants". That is, they undergo basic skin care training. The second feature is that the territories are not assigned to a specific consultant: they can hire their agents anywhere in the world.
Like Avon, Mary Kay stopped testing its products on animals in the early 90s, but resumed it in 2010. For which she was severely criticized by the "greens".
ORIFLAME
Swedish beauty concert Oriflame was founded in 1967 by brothers Jonas and Robert af Jochnik. In the early years, only one product line was sold, now the range includes about 1000 items of cosmetics and perfumes. The annual turnover is about 2 billion dollars, the number of consultants in the world is over 3 million people.
Oriflame positions itself as an environmentally friendly company and even prints catalogs on paper, which is produced from artificially planted forests. Therefore, Greenpeace people do not attack the company much. But she came to the attention of the tax authorities. In August of this year, the Russian representative office of Oriflame and non-payment of taxes for several million rubles.
FABERLIC
The first Russian MLM company was founded in 1997 by entrepreneurs Alexander Davankov and Alexei Nechaev. The original name is Russian Line, the Faberlic brand was registered in 2001. The company currently operates in 20 countries, including Poland, Germany, Romania and Hungary.
The company considers its know-how to be "oxygen cosmetics" - face and body care products based on perfluorocarbons. Faberlic's turnover is now over $250 million a year.
KIRBY
The company for the production and sale of vacuum cleaners this year celebrates its 100th anniversary. It was founded in 1914 and bears the name of the developer of the first vacuum cleaner models, Jim Kirby. The "chip" of the company is that in a certain period it sells only one model of vacuum cleaners. After the model becomes obsolete, it is removed from production and they start selling a new one.
Kirby is the most scandalous representative of the MLM diaspora. Every year, US consumer protection agencies receive dozens of complaints about the incorrect actions of the company's distributors. Allegedly, they use severe psychological pressure to force the client to give money for expensive equipment (for reference, the price of a Kirby vacuum cleaner starts at 100 thousand rubles). Russian forums are also full of messages: “Kirby vacuum cleaners are a scam, a scam, a divorce!”. Nevertheless, the company continues to operate in Russia and in 70 other countries around the world.
HERBALIFE
Created in 1980 in the USA, it offers products for weight loss, healthy nutrition and skin care. Herbalife's international division is now led by former Disney CEO Michael O. Johnson, and skincare R&D by Paolo Giacomoni, formerly of Estee Lauder and L'Oreal.
Herbalife is the first American MLM company to open a representative office in Russia. This happened in the early 90s and coincided with the appearance in Russia of a huge number of financial pyramids. Therefore, many still mistakenly rank HERBALIFE among them.
The debate about whether the MLM business is good or bad continues to this day. Some extol multi-level structures, seeing them as opportunities for quick earnings, others condemn the very principle of building pyramids. Business analysts do not agree. Some predict that direct selling will soon replace traditional retail, while others believe that retail and e-commerce will eventually kill MLM. However, network marketing has been around for decades and is not going to go down just yet.
Alena Yarkova almost got into the network
Illustrations by Dmitry Shevchuk
To organize a network business on the network, you need to work on the Internet at home. What is the best business to open online for optimal earnings online with minimal investment? Naturally, the best entry into online business is, oddly enough, network companies and network marketing.
Network marketing companies in Russia appear regularly and disappear rapidly. In order not to fall for scammers on the network, and, in particular, scammers in network marketing, it is necessary to choose a network company with experience and a reasonable business plan. Of course, it's easier to send all the "obsessive" and work for someone stupidly performing mechanical actions. But you can turn on your mind, choose the best network company with an affordable franchise, and provide yourself and your children and parents with a decent life. just working from home online.
What you need to know for remote work on a network at home, if you intend to work on the Internet and looking for a ready-made business with minimal investment?
“There are many network companies, but you have only one life” - the words of a great woman, Tamila Polezhaeva.
Starting a business
When choosing a network marketing industry, it is very important to choose a network company with the most convenient marketing plan for you. It is important that the company's capabilities match your needs. Now I will briefly describe the pros and cons of the most famous network companies - competitors and starting a business in them. Where you can open a business in Russia - the most affordable franchise and telecommuting networking at home.
So, there are many companies on the market (cosmetic, travel, legal). I want to say right away that the founder of network marketing was Mary Kay (Mary Kay), which began its existence in the 19th century! But, this company is engaged in offline promotion (meetings, master classes), entering the company is quite difficult - you need to purchase a starter kit of expensive cosmetics for a good amount.
Active promotion on the Internet is carried out by Avon, Faberlic, Oriflame, NL and Amway. Consider these network marketing companies in Russia.
What business to open
Avon
To register with this company as a coordinator (that is, to get the opportunity to invite people and build your own business), you need to send paper copies of documents to the company, which delays the registration process for a long time. Of the benefits - a small purchase amount - only 1600 rubles, cosmetics are inexpensive. The company promises a good bonus is 125,000 rubles, but it is paid only if the coordinator recruits 5 active consultants in the first line of each catalog, and this continues throughout the year.
At the same time, there is a certain plan for group turnover, if it is not fulfilled, the coordinator flies from qualification to a bonus. The company promises a discount from the catalog price. If a consultant buys cosmetics only for himself, his discount is 15%, if he fulfills the plan (each catalog of 5 actives for 1600 rubles) - the discount reaches 32%. It is easy to guess that if the coordinator does not fulfill the recruitment plan, then he finishes off the order for inactive consultants. You want to get bonuses and very big discounts .... The company thus does not encourage the construction of structures in depth. When recruiting, the coordinator is happy to announce that in order to receive income, it is not necessary to start an individual entrepreneur, the money is dripped onto the consultant's card.
At the same time, it is forgotten to clarify that for such a procedure the company retains 20% of the consultant's profit at the first stages, and then the retention increases to 40%. The company does not have large-scale events and conferences that the Internet would thunder about. There is also no way to get passive income. The plan for recruiting to the first line is endless. In case of non-compliance with the plan, Avon may terminate the contract with the consultant, transferring its structure to another coordinator. No international sponsorship provided.
Faberlic
This company has been on the market for only 20 years. This is a Russian company, which the consultants are very proud of. The marketing plan and the picture of the career ladder are painfully reminiscent of the Oriflame marketing plan. But the devil is in the details. The Company pays bonuses when a consultant achieves certain Directorial ranks. Prizes in rubles - for closing the title of Director, paid 55 thousand rubles. Mandatory turnover - 50 points. At the same time, 1 point costs 80 rubles. In total, the mandatory purchase for payroll is 4000 rubles. Director's turnover is more than 400,000 rubles.
The company DOES have a plan to recruit first line priority. There must be a gap at any Director level. If a consultant has 2 grown directors in the first line, then in order to receive income from these structures, it is necessary that there is an additional growing group with a turnover of 1000 points (80,000 rubles). There is a gap at any level. If the SUPER-Director does not have a personal group, then in this directory, he will not receive a salary.
That is the company did not provide for its consultants the possibility of passive income. Also, if the recruitment plan is not fulfilled, the company reserves the right to unilaterally terminate the contract with the consultant. Travel abroad is not included. Entrance to the company is free and without a passport.
NL
Russian company - IP registered in Russia. The company's product Energy Diet- Pretty expensive food cans. I am not satisfied with the recruiting method in this company - newcomers are taught to recruit existing consultants from other network companies, in particular Oriflame.
I also alerted the turnover necessary for accruing income - 21,000 rubles per period. A very narrow focus of products and a high price per unit of goods make it quite problematic to develop a business.
Amway
This network company is mainly engaged in household chemicals, washing powders. Of the minuses - there is an entrance fee that must be paid for the right to work in the company. The product is quite expensive and does not run out for a long time.
Eat obligatory turnover - 200 points, at the moment this amount is more than 10,000 rubles. Since the goods are consumed for a long time, to ensure a minimum personal turnover, you need to constantly find new buyers. Also, the presentation of the goods takes place offline (i.e. wash clothes and remove stains at the client's home;). On the Internet, Amway business is not common, you can mainly see selling pages. Quality products, but for business I would not choose Amway
Oriflame
This network company 50 years on the market, 20 years on the Russian market. Survived 3 crises and always only increased its turnover. Assortment - 1800 items for every taste and budget. In addition to decorative cosmetics, skin care products, there is an excellent Wellness series - health products.
To calculate salaries (volume discounts), the consultant must learn how to make a turnover equal to 150 points (about 6000 rubles). The consultant's initial discount is 20% off the catalog price. When a consultant makes 150 points for his number, the system automatically calculates and shows the income from his structure, and in the next catalog 12% of the consultant's personal order is returned to the account.
Thus, a partner who came to build a business makes 150 points and the total discount is 32%. The company has own production - 5 factories and 1 leather research institute, constantly publishes scientific publications, has its own patented formulas. The company has milestones - titles, upon reaching which the company pays dollar bonuses. For the title of Director - you will receive $1000, for the title of Golden Director - $2000.
At the moment, bonuses of up to $1 million are envisaged. The director's turnover is 250,000 rubles. The company does not have a plan for recruiting in the first line. A consultant may not recruit at all, but buy personally for himself and have the maximum discount. In the projects of the company, building structures in depth is welcomed, which gives a chance to all team members to grow quickly.
When a consultant reaches the title of "Golden Director" (that is, 2 director teams have grown under you) - income becomes passive, and you can not recruit at all, but make personal turnover and receive your 5% of the team's turnover. Basically, everyone goes further and continues to build structures, because "appetite comes with eating", plus the company arranges motivating trips abroad (conferences) from certain levels.
Once a year, the company holds a conference for managers and directors - even newcomers can go if they fulfill the conditions for their growth. The second conference is for Gold Directors and above, the third is for Diamond Directors and above, and the fourth is for the Top Leadership of the company. Banquet Director takes place in Moscow every year- the largest corporate party in the country, which attracts all the directors with their companions. Stars of network marketing, show business stars perform at the Banquet. From the "Director" level, an Autobonus is available - a monthly payment from 3,000 to 9,000 rubles. to buy a car.
Income is accrued to the consultant to his personal number and is paid in full when the consultant opens an IP (calculations under the simplified taxation system). Upon reaching the level of "Director" Registration costs 149 rubles (if the consultant collects an order for 100 points within 21 days from the date of registration, this money is returned to his account and can be used as a discount on the next purchase. For registration, you need a series and passport number.
You can work in 62 countries of the world. International sponsorship is provided, that is, you can have a team in Russia, Ukraine, Poland, etc. Oriflame is the only best network company in Russia where you can pass on your ready-made business by inheritance - this is an ideal network job when choosing which business to open so that you can work from home. The best choice to start an online business. They really have something to be proud of. And now is a good time to
Having studied the company's website, I see only the hotline number, a list of service centers and email. In fact, there is not enough information for a serious decision in favor of long-term cooperation.
Where is the information about turnover, production, form of activity, assortment? Well, okay, the company was founded in 2007 in Barnaul.
To get a marketing plan, I had to register on the company's website. It turns out that the company is developing in 32 countries around the world. You can see a photo of the CEO. On the site for checking counterparties, it turned out that 4 companies were registered with the general director, which are LLCs with an authorized capital of 20,000 rubles and total revenue for 2016 in the amount of 383 million rubles. Oriflame, only in Russia, for the same year, had a revenue of 15 billion 940 million rubles.
Not a single fact that tianDe has at least one plant, research center or factory, institute. All production is in China with ISO certification. That is, the products are clearly with an extra charge - everyone needs a profit.
It says at the top - the 35% discount does not apply to the first 20 bb. We drive in an order for 20 bb (1277 rubles) - the discount is not issued, we drive in an order for 130 bb (5900 rubles) - the amount for free delivery - the discount is 29.6%. If the order is reduced to 50bb, then the discount will decrease to 21.3%. Where is 35% on products?
Delivery - only from self-delivery points, which are only in 15 cities. Not enough, compared with the thousands of free software that Ori has, even in the most remote corners of our country ... If your city is not on the list of Tiande pickup points, you will have to pick up the goods at the post office, paying an additional 500 rubles, and you will have to wait from 4 to 15 days for the delivery of the goods .
Now about the marketing plan.
First, the cost of a point for a consultant and the cost of a point payable are different. And the difference is quite large - about 50%. They pay, as in NL, only from half of the sales.
A high margin per product kills the idea of network marketing, which is supposed to ensure the availability of a quality product.
Secondly, the "unique non-separable marketing plan" of the company is unique by the total pool of all volumes. All their MP is Ori's marketing plan to the level of Director in Ori, for example. And then imagine that at the Senior Director level the discount would be 23%, at the Gold Director level it would be 24%, and so on up to the Diamond President.
But if you do not have an inter-percentage difference with your leader, you will not be paid anything from your group, only a bonus from 5 generations. And if this branch accounts for 75% of the volume of your structure, then you will not receive this bonus either. It is NOT PROFITABLE to raise leaders in this company.
The marketing plan is final, that is, if you have collected all the qualifications, you will have to come up with new ones until you get to 100%, but this is no longer possible, that's all the uniqueness.
Thirdly, the company has only five levels of bonuses, everything else is cut off, and you must constantly work on breaking away from your branches. There is no passive income in this company.
Fourthly, the Auto program ends in 2018, the only brand you can count on is Volkswagen. A car is leased under specific conditions (an increase of 10,000 - 40,000 points per year). The car program in the company is given under rather harsh conditions, a large number of points, I think. But for me, the most important thing in the network is the ability to build passive income. The rest - then ...
As for travel, they didn’t get into the wilds either - the company has just begun to develop this direction. One thing pleases - of all the companies listed here - representatives of Tiande have never tried to lure our girls and boys to them - this speaks of clean working methods.
I hope that they will remake their unique marketing plan, because the network business is a business of mutual assistance, where it is profitable to grow and train leaders.
Grid companies of Russia
Despite the enormous income gained from the network business, in Russia only 7 percent of the population is included in it, who are mainly engaged in open sales, that is, they form the turnover of network companies. Nevertheless, significant dynamics are visible.
Every year, new network companies appear in Russia, which are untwisted much more rapidly than companies performing traditional sales. Undoubtedly, in terms of mass, such states as India, China, Brazil, and Japan are mainly leading in this business. In Russia, there is still a lot of free space on the network.
A very delicate moment in the network business is the absence of any legislative base in our country, while in America and Japan, for example, there is a whole section in the laws on network marketing. Such conditions lead only to fertile ground for fraudulent activities, which, unfortunately, occur to this day.
It's good that we have at least a special association that somehow checks the network companies in Russia, raising the intended trust in these companies and network marketing in general. In the database provided by the association, there are only 16 organizations that can deserve some trust.
When newly minted companies in the fashion chain business emerge, one cannot be one hundred percent sure that they will be able to survive among a significant number of rivals. In any case, one of them will go bankrupt, and there is nothing terrible or shameful in this, because this is a business - nothing personal ...
Remote networking at home
Those people who decide to work in the company must understand that, perhaps, they will have to invest personal funds, undoubtedly there will be a lot of contact with people, research products and of course mentally prepare to the fact that customers will be all the most diverse, and it is strictly forbidden to perceive any disagreement on your own subjective account.
Many people have reached significant heights in this difficult networking business - as an example, you can look at similar Russian network companies like Avon, Oriflame, Mary Kay, Amway and Faberlic. Among their top leaders are diamond directors with cars and apartments, and a huge team of successful distributors around the world.
Often, Russian network companies provide their employees with unlimited freedom of action, the potential for themselves, carve out days off and earn as much as they want. Such a positive fact has its own specific nuances, since, on the one hand, it looks like everything is wonderful, and you definitely your own boss, and on the other hand, at the initial stage there is no stability, today you can make good money, and nothing tomorrow, but this is only a matter of time.
Undoubtedly, if there is a goal and desire, and essential knowledge of one's products or services, then everything will definitely work out. Successful network companies in Russia have certain established and well-established tactics of professional online business organization, capable of build a stable business to ensure return on equity.
Newcomers need to tune in to a leisurely, but promising outcome, since you won’t earn significant money right away, especially in large companies where there is competition that has captured about 70-80% of the entire sales market. Only with gaining experience and understanding all the subtleties and nuances of the network business, it is possible to come to a decent and stable income.
Question for those who are already registered in any network company:
If everything is fine with you, why are you looking in the search for "Network Marketing Companies in Russia"? If you went to this page, it turns out that you are dissatisfied with your company and are looking for something else?
Or you came to leave here your coordinates in order to lure people from other companies to you. Such behavior is unambiguously incorrect and discredits your entire company. Such comments are removed.
I express my deep gratitude to the blog of E. Penkin in the formation of the addition of part of the article. I completely agree with Evgeny - there should be no competition and enticement within network marketing. Competition should be between traditional and network business. Leave all the "tomatoes" in your pockets and go to work in your companies with clean methods.
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Every day, thousands of people around the world are trying to discover ways that could provide them with the opportunity to receive a basic or For this, they have to look at the vacancies that have appeared on the labor market or study certain ways of earning.
To help solve the issues of generating income for each person allows network marketing. Reviews of professionals in this matter clearly indicate that success can only be achieved if the right steps are taken at the start of a career in MLM.
It is rather difficult to explain what network marketing is in a nutshell. Some people, when faced with such companies, call the schemes they created for earning a real "scam". But there is also an opinion to the contrary. According to him, network marketing receives reviews as the only opportunity to open your own business without the initial investment of large sums of money in its development. So which of these two opinions is correct? In order to understand this, you need to understand the question "Network Marketing - what is it and how does it work?".
Only after collecting detailed information about the MLM system, each person will be able to come to certain conclusions and decide for himself whether it is worth working in this area, or leaving it for others.
What is MLM?
This abbreviation stands for: MultiLevel Marketing. And this means nothing more than "multi-level marketing". It is also a direct selling system.
Network marketing (MLM) is a special way of promoting a particular product with the help of a whole network of people who receive a certain percentage of sales or a reward for attracting newcomers to the company. A person simply tells about the product to his acquaintances and friends, and they, in turn, distribute such information further. As a result, a kind of network is formed that contributes to the rapid sale of goods. This is the essence of network marketing.
Inviting people to the company is very profitable. After all, for each new buyer, a person has a certain percentage of the profits received. However, expanding the network of buyers is far from simple. Often, a variety of psychological techniques are used in network marketing for this. Not everyone likes it. That is why, before inviting a new person to the company, network marketing professionals should explain to him the essence of such a product distribution technology and explain the advantages that this work has.
A bit of history
The first company operating on the MLM principle appeared back in 1927. It was then that the creator of nutritional supplements, K. Rehnborg, laid the foundation for multi-level sales, in which he achieved good success.
Initially, K. Rehnborg was engaged in ordinary trade. However, a moment soon came when the demand for products became much higher than its capabilities. And then K. Rehnborg came up with a great idea. To distribute the goods he created, he began to attract acquaintances and friends, offering them an appropriate reward.
Somewhat later, Lee S. Mitenger and William S. Casselbury, who came from this company, which was called Nutrilite Products, developed the basic principles of such sales. Soon MLM gained popularity all over the world. By the end of the 50s of the last century, on the basis of the company that laid the foundation for a new type of product distribution, the now widely known Amway distribution network was founded.
But the MLM scheme and companies working in this area received particular popularity in the 80-90s of the 20th century. And today they offer a very extensive range of products, which contains almost everything from vitamin supplements to dishes, cosmetics and household appliances. Which companies have chosen network marketing for themselves? "Oriflame" and "Avon", "Faberlik" and "Zepter", as well as many others. According to experts, some of these companies have an annual turnover of products offered on the market that reaches about 200 billion US dollars.
learn to distinguish
Sometimes a network company is compared by those who first encountered MLM with a financial pyramid. Of course, at first glance, the scheme by which sales are carried out is not very simple. However, with regard to network marketing, here a person does not need to invest a lot of money, then just sit in anticipation of a miracle.
If this is real network marketing, how to make money in this area? It will take a lot of effort to grow your customer base. At first, there may not be any profit. However, if you make some efforts, then soon you can start receiving a certain income from sales. If the network is too large, then the newcomer will be far from its top. In such cases, he should not wait for a move to the Maldives or sky-high fees. But a couple of tens of thousands as an increase in salary is quite real.
However, before you become an agent and start to interest clients, you need to pay attention to certain points. They will avoid the financial pyramid. So:
- True network marketing offers to sell a specific product or service that is contained in the manufacturer's catalog. For the future, products are never purchased. Only those products that have been ordered by customers are subject to sale. Payment for the goods is made on the day when it is received from the warehouse.
- A pyramid scheme company will require the payment of membership fees or the purchase of "securities", which, outside of this organization, are nothing more than ordinary candy wrappers. In addition, with a financial pyramid, each person makes a profit not at all from the volume of products sold by him and his network, but from the number of those people whom he brought to the company and who paid her membership dues.
- Another type of network earnings that is questionable is the implementation of various equipment or software. Before starting work in such a company, you will need to pay for a certain package of services that allows a person to take one place or another in the trade chain. These can be various tools for working in the form of a plastic card or a personal account, the use of which is impossible without paying a subscription fee. Where can you find such network marketing? Examples of such a business are far from isolated. For example, Talk Fusion attracts potential clients and agents with offers of income that can only be generated after paying a certain amount in advance and attracting two or more newcomers. The chain created in this way will be profitable. Such a scheme is more similar to a financial pyramid, although the company still has a product that needs to be sold. But, in order to succeed in this firm, a person must have the qualities of a psychologist, speaker and leader. And in this case, he is unlikely to be able to rise from the entry level to the very last step.
From the foregoing, we can conclude that successful earnings in an MLM company are possible only after a preliminary study of all the conditions for cooperation. Only by making the right choice, you can achieve successful promotion.
Assessment of prospects
How to start making money in direct selling? To conduct such a business, a reliable and promising network company should be chosen, which will achieve the desired result. The best start option is a well-known brand. When choosing it, you will not need to make great efforts in order to convince customers of the need to purchase. Cosmetics manufacturers such as Faberlik or Oriflame, as well as companies offering household goods (for example, Amway) are popular. These products have already been appreciated by consumers, and they will buy them without any fear.
However, it should be borne in mind that other distributors have already managed to occupy the niche of well-known brands. And for those who have chosen network marketing for themselves, how to make money in this case? A high level of competition will require the use of a special strategy, without which it will be impossible to create a customer base and start earning your own passive income. Of course, in this regard, it is easier to make money in a newly created network company that offers a product that inspires consumer confidence, but at the same time is in short supply on the market. These are new dietary supplements, training courses, devices for health and home, etc. The choice of one direction or another will largely depend on the personal interest of the person, as well as on his desire to make money on it.
Rating of MLM companies
There are a large number of manufacturers on the Russian market who sell their goods by direct sales. What are network marketing companies? Their rating contains those brands that occupy almost 70 percent of the MLM market. Avon is number one on this list. Followed by Oriflame. Third place belongs to Amway. On the fourth is Mary Kay, which offers cosmetics. The fifth place in the ranking is occupied by Faberlik.
The remaining companies are considered smaller and cover the remaining 30 percent of the market.
Education
If network marketing is chosen as the direction of business, how to make money on it? Attention should be paid to the assistance provided by the representatives of the company to newcomers. It may include various manuals and video tutorials, trainings and meetings. All of this is usually provided free of charge. Sometimes curators help in attracting the first customers. Without training, it is impossible to work in MLM at any stage. The more detailed information a person has about the product and its benefits, the easier it will be for him to convince other people that they need it. That is, persuasiveness directly depends on the existing knowledge base. The experience of MLM professionals also helps, who will definitely tell you how to make a profit faster, as well as attract new people to create passive income.
Receiving a profit
An important point when choosing a network company is to study the scheme for accruing cash and bonuses. After all, earnings are the main motivation for any person.
With a fairly transparent scheme for generating income, the absence of penalties, as well as unrealistic targets for the sales volume offered by the company, work in the selected network company is quite capable of bringing good results.
Action plan
After choosing a specific network company that provides an excellent opportunity to earn money, it is recommended that you draw up a business plan for yourself that will allow you to understand what should be paid attention to.
So, it is worth choosing a way to receive money. It can be a direct sales method or use a passive option. Which one is more promising? Often product distributors tend to start with personal selling. In doing so, they get the opportunity to explore demand and build a customer base.
Professionals who have perfectly studied network marketing look at this issue somewhat differently. How to make money, according to their advice? MLM gurus recommend that beginners start from two positions at the same time. Indeed, among potential customers there will always be people who want to receive additional income, as well as those who wish to purchase products at the purchase price.
Networkers who are at the highest or middle rung in the hierarchy of the distribution scheme note that they owe most of their earnings to the work of subordinates, and not at all to direct sales. Thus, after some time, having built up a client base, you can generally refuse direct sales of products, having made the right motivation for the entire multi-level structure of agents.
Sales Methods
How to get a good income in a network company? To do this, you need to find the most effective methods to attract customers. There are several of them:
- Direct contact with people. This method is used if a person working in a network company has free time to visit public places or has a very large circle of relatives and friends who are not yet involved in the MLM business. However, judging by the reviews of professionals, this method takes a lot of time and is often ineffective. This option is relevant for the already existing list of customers who only need the delivery of catalogs and products.
- Creating a consumer base using social networks, your own website or online store. In this case, less time will need to be devoted to work, and the coverage of the audience of potential customers will be much wider. In this case, only those users who are interested in the company's products or wish to receive additional income will respond to the offer.
- Creation of contextual advertising and landings, sending offers to ad sites and e-mail.
Everyone who wants to make money in network marketing can increase his profit several times if at the initial stage 2-3 MLM companies are selected at once. So, customers can be offered several brands of cosmetics, as well as products intended for face and body care at the same time. This option is also beneficial in that the cost of the product from competing companies has differences. This allows people of different incomes to choose goods from the desired segment.
Knowing one's own character
Not everyone can succeed in network marketing. In order to receive a high income, you must have the following qualities:
- patience and stress resistance;
- sociability, which implies the ability to speak, and then keep up a conversation with any person;
- perseverance, which will allow you to achieve your goal, sometimes returning even to where a refusal has already been received;
- psychological skills that allow you to convince a person of the need to purchase a product;
- leadership qualities that will make it possible to develop a chain of passive income;
- oratorical qualities to speak confidently, correctly and beautifully;
- the ability to plan your own time, which will prevent fuss, eliminate inconsistencies in scheduled meetings and leave yourself time for relaxation and self-education;
- trading skills.
A person with the qualities listed above, applying all the rules recommended by professionals in this field, will certainly succeed in network marketing.
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