Network marketing - how to make money? The essence of network marketing. Rating of network marketing companies in Russia MLM companies of inexpensive cosmetics

Friends, I welcome you! Today I will tell you about my new mlm project in 2017 and a new way to promote sales and recruitment. Now you will just blow your head off, really.

Today I won’t write a big article, I’ll just show you a secret, whoever reads my blog will learn a powerful way to work in mlm projects. This is my personal system and not a single person uses such a method.

In short, when you register for a new MLM company in Russia, the first thing you are told is to make a list of acquaintances. Then you need to take and annoy your friends and acquaintances with calls.

This is complete nonsense, today it does not work. By pestering everyone with your mlm company, you will only achieve that no one will communicate with you. Therefore, do not listen to anyone who tells you to call.

Some people think that working in MLM via the Internet means pestering all people on social networks and via Skype and imposing their network company or project on them. In 2017, this is considered complete nonsense, because it has not been working for a long time.

And now ATTENTION, I tell my personal exclusive method. In the article " how to make money in mlm» I have already written how to recruit crowds in Internet projects in 2017. Now I will show what I came up with for a separate company.

So, I signed up for a new mlm project in 2017 because I liked it because of the product. They sell corals from the island of Okinawa, which make Living Water. Moreover, this is checked by devices, and not empty words.

This new Japanese project of mine has a huge range of products for health and more. So I just made a website called Living Water and began to fill it with content.

First, I set up the site technically, then I made a plan, divided all products into rubles, and for each product I will write a separate article for a specific request.

Thus, people who are looking for a drug for some disease write a request in the search and my site is given to them. This is how the flow of customers and new partners is launched for free.

People from the search will each go to a certain article, depending on who is looking for what and reading the text, he is secretly invited to purchase my product. What made my work easier is that the company has an online store and a separate referral link for each product.

The client is invited to purchase the product at this price, but if he registers in the project, he will receive a 20 percent discount on this purchase and on all other subsequent purchases.

Thus, a network of partners is built by itself, who will purchase the product and make you a turnover. This is exactly the system I came up with specifically for my new mlm project in 2017, and I think that now this is the only way to make money in the network industry.

There is also a page on the site where I talk about myself and offer those who, in addition to discounts, also want to earn money in a Japanese company, then contact me. There is also a page with my contacts.

Friends, here is a new system of work for you, where you do not impose anything on anyone, and your job is only to properly maintain and promote your site. How to do this, you can learn from me in the rubric "Reality Show (Blogging)".

There is nothing complicated here and I think in the near future everything will work just like that and will. But since I was the first to come up with this, right now, without wasting time, start using this system to skim off the cream.

Friends, I hope that I have conveyed the information to you in an accessible way, you yourself see that this year we need to start promoting the business in a new way, especially since we are on the Internet, where everything is changing rapidly, stop digging with a digging stick when it has long been invented the excavator.

Hello, friends!

As a person who has a passion for all kinds of analytics and statistics, I decided, purely out of curiosity, to look at the statistics of queries on the Internet for a key phrase “registration in… followed by company name”. And find out for yourself which network company enjoys the most attention from those who want to connect their fate with network marketing. On the Internet, of course. 🙂

To collect statistics, I used the Yandex-wordstat service, with which I regularly consult about site traffic by keywords and phrases.

Without further ado, I made the algorithm for collecting statistics extremely simple - I consistently entered the phrase “registration in Faberlik” into the search box, “registration in oriflame” and so on. Moreover, the service gave me, for example, that people are much more likely to type like this: that is, the phrase back and forth. But it doesn't change the essence.

Another point, it happens that search phrases contain various spellings of the company, for example, “avon”, “avon”, “avon”. In this case, I did not sum up the number of all requests with different spellings of the company name, but simply took the most popular phrase. Because if I also added, the stratification in the top ten would be even more contrasting.

In the process of my research, it turned out that only eight got into the Top ten popular companies that crossed the figure of 100 requests. The rest could not cross the threshold of 100 requests for the phrase “registration in (-company-)”.

So, first place and the people's love was occupied by the company Oriflame With 1774 interested in the opportunity to register.

Oriflame statistics

Second place With 1142 "votes" won the company Avon, although it is not a pure network, but the brand is very famous and popular. Although Avon is ahead of the Leader in our rating in terms of sales, there are fewer people who want to subscribe there. Probably everyone has already been “rewritten”. 🙂

Avon Statistics

The third place of honor is held by the company, the largest Russian grid company - 824 "vote".

Faberlic statistics

Interestingly, all three leading brands are “cosmetic” companies (in the sense that the main product core is cosmetics), apparently the most attractive product for network business and direct sales.

Fourth place occupied by the company Vision – 499 "votes". Although I suspect that many of the requests were for a different Vision. Most likely someone wanted to know how to register the Nero Vision computer program. 🙂 There may be an error in the vote count. I immediately made a reservation, there may be inaccuracies.

Vision stats

Following on the heels comes Amway – 488 requests, and an honorable fifth place. Do not be offended Amway, let us offer you to share the fifth place with the Visioners.

Amway statistics

On the sixth bedside table the debutant of the Russian market is a German company LR – 163 request. Apparently Heinrich Erdman and a galaxy of Frenchmen who once conquered Russia in the dashing 90s know how to stir up interest in network marketing and their company. Who is last in line for Polo?

LR statistics

Seventh place from the network giant in Ukraine and some regions of Kazakhstan - the company Tian De. Legally registered in Russia and selling Chinese goods, the company has collected 134 request.

Tian De stats

Rounding out the Top 8 Top Ten Most Requested Registrations is a company Siberian Health, scored 129 "votes". Eighth place!

Siberian Health

The rest of the companies, such as Mary Kay, Coral Club, Tentorium, Herbalife, Argo and many others did not receive more than a hundred requests per month, so they did not make it to my list.

What conclusion can be drawn from these statistics? I draw the following conclusion: people are interested in the products offered by network companies, people are interested in the companies themselves, people want to engage in network marketing. And the Internet will only grow. So we have something to work on, friends.

Gentlemen and ladies, you can draw the appropriate conclusions.

P.S. Here you are eshkin cat! Completely forgot! Nominee out of competition! 720% per annum on deposits, fans of Sergey Mavrodi receive out-of-competition (for non-compliance with some principles of network marketing) place of honor in my report With 1478 impressions. The “partners” in Rus' have not yet been intertwined! 🙂

Statistics MMM-2011

Alexander Ivanov

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

It was born in 1963 and, hard to guess, was named after its founder.

The catalogs offer high-quality cosmetic products and are in great demand among Russian consumers.

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

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

They not only sell products, but also receive pre-training in the use of cosmetics and skin care, which ensures a professional approach and a high degree of customer confidence.

Location 6. Oriflame

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

Back then, the catalogs offered only one product line, while today the range includes over 1,000 perfumes and cosmetics. The turnover is 2 billion dollars a year, and there are more than 3 million net distributors.

A feature of the company was the position of an environmentally friendly manufacturer.

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

To demonstrate its firm position, the company even publishes catalogs using materials from artificially grown forest plantations.

Location 7. FABERLIC

Well, finally, our Russian company becomes the last favorite of my rating. Its founders were our compatriot entrepreneurs Alexei Nechaev and Alexander Davankovy.

At first, the company was referred to as "Russian Line", but in 2001, apparently deciding that this was not solid enough, it was registered as Faberlic.

To date, the brand has expanded to 20 countries, including Germany, Poland, Hungary and Romania. Faberlic considers developments based on perfluorunlerodes, that is, a collection of oxygen cosmetics for facial skin care, to be a unique “trick”.

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

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

Among these, I include Cashback service Switips, the benefits of which I wrote right here on Telegraph.

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

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

P.S. I recommend paying attention to free training on Cold contact automation, which will help you create a System for attracting partners to your team on full autopilot online.

In order to make it easier for you to make a decision, I conducted a comparative assessment of 10 mlm companies, according to 13 parameters, which I summarized in a table for clarity. Since the table turned out to be quite cumbersome, the full version will be available by subscription.

What is network marketing

MLM or network marketing- this is a way of selling goods, which creates a network of independent agents involved in the sale of products and the involvement of other agents.

MLM allows you to realize the concept "Home work" And "make money online", however, the success of the implementation of the concepts depends on the correct choice of a network company (not all companies welcome independent work on the Internet).

This article discusses the main parameters of the offers of the most popular MLM companies in Russia:

• Amway is a world leader in MLM selling cosmetics, household chemicals, vitamins, weight management products, tonic drinks, etc.
• Oriflame is a Swedish network company selling cosmetics, accessories and clothing.
• LR is a German MLM brand specializing in cosmetics for body care, perfumes, and fashion accessories.
• NL International is a Russian network company owning 18 trademarks. These are balanced nutrition Energy Diet, sports nutrition, coffee, tea, dietary supplements, decorative and caring cosmetics, household chemicals.
• Siberian Health is a domestic network brand that manufactures cosmetics, balms, children's syrups and dietary supplements.
• Tiens (Tiens) is a Chinese network company selling dietary supplements, decorative and caring cosmetics, and medical devices.
• Faberlic is a Russian network company specializing in skin care and decorative cosmetics, clothing.
• Avon is an American network company selling decorative and caring cosmetics, accessories and clothing.
• Mary Kay- American MLM company that sells decorative and caring cosmetics.
• Herbalife is an American network company selling slimming cocktails, dietary supplements.

Comparison of mlm companies in Russia

	Amway	NL International	Herbalife	Faberlic
resident	USA, 1959	Russia, 2000	USA, 1980	Russia, 1997
Price policy	Distributor price	single price	distributor price	distributor price
price, discount %	discount from 15 to 23	cash-back from 10 to 34	discount	up to 35
Start conditions (Activation)	discount from 15% - registration, 23% discount -reg. contribution 1500 r. And annually -670r.	4000r - cash-back 490r. purchases 20 000r - 7600r.	Partner set - 2070 rub. Max. benefit - purchase of 5000 VP (1VP = 70 rubles)	4000 r.
Business online, %	15	35	17	34
reputation on otzovik.ru	230 / 53	13 / 50	68 / 61	82 / 89
group volume	8% - VAT	4-21%	1- 5 %	no data
Mentor Bonus	No	yes, 1000 rub.	No	et. difference between prices.
popularity in Yandex	85079	160498	18400	191165
office, logistics	16 offices.	270 offices.	no data	40 offices.

All companies have different approaches, it is difficult to bring them to a common denominator, so specify the information about your companies in the comments. Your activity will allow you to change positions in the ranking!

Company's mission

The mission defines the values ​​that the company offers to society, customers and employees. In the MLM industry, the mission defines the network company's marketing plan, which in turn serves as the business plan for developing one's own network business. Analysis of the mission of organizations gives the following results:

1. Mary Kay and Avon have no place for men;
2. U, Herbalife and Tienshi - there is no mission on the Russian-language site;
3. Amway has either an incorrect translation on the Russian-language website, or the mission is not formulated for people. I can only assume that it has a commercial focus;
4. At Oriflame - it seems to me, an excerpt from the mission is presented.

Conclusion: Before deciding to cooperate with companies from a numbered list, it is necessary to clarify the question of the Mission, since it will directly affect your income and success. With companies from point 2, I would not work at all.

Country of origin

Any company is a resident of the country in which it is registered as a legal entity. As a rule, the market of the native country is the main market of the MLM company. In the home market, the company will stand to the end!

In business practice, there are often cases when companies leave secondary markets, closing the business completely or leaving a small representative office to monitor the market. So, at present, OPEL, CHEVROLET, HONDA, curtailed or significantly reduced their business in Russia.

The second important factor in the location of the headquarters is the understanding of the mentality of secondary markets and the ability to adapt to the rapidly changing realities of these markets. It is obvious that the domestic company will adjust to the changes in the "native" market faster.

Conclusion: On the basis of "resident", it is preferable to choose a domestic MLM company.

Price policy

Distributor price- the price at which the networker buys goods in his company. There is also a catalog price - at which it is recommended to sell the product. This business scheme has three serious flaws:

1. The goods inevitably pass through the hands of the networker, i.e. checkered (or other) handbags and “trading agents are not allowed to enter” do not disappear anywhere;
2. The goods have to be sold at a discount, since it is not customary for us to cash in on our own. The size of the discount depends on the professionalism of the entrepreneur. Beginners have a higher discount and naturally earn less;
3. As the product passes through your hands, it is inevitable to go through sales, which many people try to avoid.

Single price policy- is devoid of these shortcomings and allows you to focus on additional earnings and building your own business. This policy is used by one company from the list − NL International.

Conclusion: quick income in NL International is easier to implement, especially for beginners.

Price and contract activation in MLM

The price and quality of MLM products are higher than those of competitors in the traditional (linear) distribution system (read). The inflated price is compensated for by a system of discounts and the opportunity to develop a network business.

MLM contract activation is a confirmation of the seriousness of intentions in business and the increase in competence in the range of the network company. You can read more about activation!

For an MLM distributor, the goods are cheaper by 10 - 45%. The most generous offers are from Mary Kay, LR, Faberlic. The most stingy are Siberian Health, AVON, Oriflame.

Business entry (activation) is less expensive for LR, Amway. Tiens and Herbalife have very high entry barriers.

Conclusion: the most interesting conditions for entering the business are offered by LR and Mary Kay.

Mentor Bonus

What is a mentor bonus- this is a fee for attracting new entrepreneurs to the MLM structure. This type of promotion is very relevant at the start of your network activity, allowing you to earn immediately and practically from scratch. The mentor bonus is only paid to active managers. In the researched list for NL International and Mary Kay, the mentor bonus is clearly articulated. At Faberlic, it is present as a difference between the prices of a sponsor and a beginner, at LR and Siberian Health - these are gifts, dinners and travel (which are very vaguely visible at the start).

Conclusion: selection in descending order - NL International, Mary Kay, Faberlic, LR, Siberian Health.

Group Volume Revenue

This is the biggest form of income in MLM, the whole “salt” of network marketing. Since the topic of this article is to help beginners choose MLM, I'm only looking at group volume in starting qualifiers. It will be difficult for you to make money at the start in LR, Herbalife and Tiens. You realize a profitable start with NL International, Faberlic and Mary Kay.

Conclusion: the best deals are given (in descending order) by NL International, Faberlic, Mary Kay.

Business online

As far as the MLM company is liberal regarding the independent promotion of its managers on the Internet, the implementation of the concept will be so successful "Home work" And "make money online".

The methodology for calculating this parameter is as follows: the ratio of private pages of managers (websites, pages in social networks, pictures, advertisements in Yandex, etc.) to the total number of responses to the company name in the search, in percent. The higher the value, the more liberal the MLM company is about the Internet.

The worst performance of the American companies Amway, Herbalife, Avon. The best indicators are for Tiensha, NL International, Faberlic. Instagram profiles are a clear illustration of the current restrictions - where there are restrictions, you will see a palette of ad units instead of content.

Conclusion: Your online business potential will be significantly limited in US companies and capable of organic growth in Russian ones.

MLM reviews (reputation)

My research on MLM reviews is based on the analysis of materials from Wikipedia and Otzovik.com. From Wikipedia, links are taken to information about those companies for which there are materials. Otzovik provides live information about the interaction of MLM companies with people.

Almost all companies have positive reviews about the quality of products. Negative information concerns three aspects: inflated promises/expectations; easy money, easy money and persistence, turning into obsession when recruiting candidates.

According to Reviewer, the numerator is the total number of requests, the denominator is the percentage of positive reviews. The leader is Faberlic (it is worth noting that this company has a lot of laudatory reviews from the Prokopevsky district of the Krasnoyarsk Territory - that is, I do not rule out cheating). The rest of the companies are in a dense group, with the exception of Tiensha - an extremely negative attitude of respondents associated with misleading and extortion in recruiting and other nuances.

Conclusion: I would not cooperate with Tiens, Herbalife.

Search query popularity in Yandex

For search queries, Avon leads by a wide margin. The popularity of the company is based on the democratic nature of their price segment and a large base of potential consumers with low incomes.

Conclusion: Avon is a business for women by a three-fold margin.

Infrastructure

An office is like the flag of a military unit. If he is, there is a team and there is a regularity of business, if he is not there, this is partisanism. It is easier and less expensive to meet and hold team events in the office (than, for example, in a cafe or in a park on a bench in winter).

As a rule, logistics is tied to the office - points of issue of orders, shops. The shorter the path from the product to the buyer, the less errors and misunderstandings occur (wrong product, quality and quantity complaints). The factor of impulsive purchases, with a long delivery of what is desired at a given time, can be the cause of disappointment and the departure of newcomers.

The presence of an office is the solidity of the business and a guarantee that the company is aimed at long-term success and cooperation.

MLM Companies with their own network of offices (more than 11): NL International, Faberlic, Oriflame, Siberian Health, Amway.

Companies with few offices (less than 11): LR, Tiens, Mary Kay, Avon, Herbalife.

Conclusion: Realize your business idea for a small town easier with NL International (270 offices) and Faberlic (more than 40).

Rating of MLM companies in Russia

After analyzing and digitizing the initial parameters, we got a rating of the attractiveness of cooperation with MLM companies. When I made my choice in MLM, I did not find such material, I hope it will be useful to you.

Rating of MLM companies in Russia

MLM Company	Position in the ranking
NL International	1
Faberlic	2
Mary Kay	3
Siberian Health	4
LR	5
Avon	6
Amway	7
Oriflame	8
Tienshi	9
Herbalife	10

You can get the full calculation methodology by subscribing to the news!

Conclusion: Every company has its own millionaires. The question is their number. What is important is your desire and decision to succeed in this difficult task. The rating only tells you where you can get the desired result faster. The choice is yours!

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What is network marketing, what are its pros and cons? Which MLM business companies are popular for 2018? How to make money in the network business the first money?

Hello, friends! This is Alexander Berezhnov, an entrepreneur and one of the authors of the HiterBober.ru website.

Today, the network marketing industry is gaining a new wave of popularity, and the development of the Internet plays a significant role in this.

However, this concept is still controversial in society. Someone calls network marketing almost the only opportunity to open your own business without investments, others are sure that this is all a pyramid scheme, a scam and a hoax.

Some time ago, I myself was involved in network marketing and I know firsthand what it is. In this article, I decided to dot the “and” and reveal this topic from all sides, including taking into account my experience in this industry.

After studying this article, you will firmly decide for yourself whether it is worth doing an MLM business, what are the pros and cons, and also find out which companies are better to start in and why.

So, let's begin!

1. What is network marketing (MLM) and what is its essence?

I'll start with a definition and then expand on it and give examples.

For example, the production cost of ORBIT chewing gum ranges from 20 to 50 kopecks per pack of 10 pads. However, while the gum is on the counter in the store, its value increases by several thousand percent! It's all the fault of intermediaries - large and small wholesalers who sell chewing gum to each other.

But everything does not end there, because, as you know: advertising is the engine of trade and intermediaries spend a lot of money on advertising.

Fact

In large companies, up to 50% of the final cost of the product is the cost of advertising and promotion of the product.

Thus, we buy Orbita packaging for 20-50 rubles. Yes, this cost, of course, includes the manufacturer's own margin, but intermediaries also want to eat. So it turns out that the end consumer suffers, who overpays at exorbitant prices.

About a hundred years ago, people thought about the problem of unreasonable margins of resellers and intermediaries.

Network marketing idea

Make the process of promoting goods (services) more convenient, cheaper and faster. Remove intermediaries and expensive media advertising from the promotion scheme.

This can be done if the people themselves tell each other about the product of the network company, and their motivation will be the percentage that they will receive from the sales of the products of the MLM company.

But you can't earn much just from interest. Therefore, multi-level marketing allows you to build your own business by creating a wide network of product consumers.

It is assumed that a person who has developed his network structure will receive a percentage of the entire turnover of his structure. That's how he can create himself tens of thousands of dollars a month.

Be sure to watch the video below to learn how you can create such an income in mlm. This is a cartoon about Pablo and Bruno - ordinary guys who chose different ways to gain financial freedom, and both wanted to become millionaires. Let's see what they got.

Network marketing was designed to solve the following tasks:

1. Reduce the cost of goods for the end consumer. This can be achieved by moving away from expensive standard advertising on radio, TV and the Internet.
2. Accelerate the process of delivering goods to the end consumer. It is achieved through well-thought-out logistics (network of own warehouses in different cities and countries).
3. Avoid fake goods. In the process of resale of goods, it is possible to substitute it and falsify large quantities. The MLM company works directly with the end consumer, so the likelihood of product falsification tends to zero.
4. Motivate company employees with money and business opportunities. In multi-level marketing, there is an opportunity to make good money and build your business from scratch.

2. How network marketing works

To begin with, I will tell you about the general principles of the work of this industry.

The manufacturing company has its own factories for the production of goods.

She sells these products without stores, products are distributed thanks to a built-in system of recommendations. In everyday language, this system is called "word of mouth".

A large number of people like this principle and they are happy to buy goods from the company.

Now all orders of an MLM company can be placed via the Internet, and paper catalogs that were popular some time ago with the development of information technology fade into the background.

The customer uses the products and can start building a business with a direct selling company. To do this, he needs to find several people who will constantly buy products and attract new business partners to develop the network. That is why this type of marketing is called network marketing.

Having its own warehouses and delivery services, the network company delivers products to the warehouse, and then these products are delivered to the offices that the company's partners (distributors) have personally opened for themselves. Sometimes the company delivers the order to the client directly to the house, which is very convenient.

Now I will talk about the features and principles of multi-level marketing for the manufacturer of goods (company), for the end consumer (client) and for the person who decided to open his own business (entrepreneur) using the capabilities of mlm.

From the point of view of an MLM company

A distinctive feature of the promotion of goods in a network way is to reduce the cost of advertising their products. The company cares more about promotional materials for its distribution partners (sometimes called independent entrepreneurs) and building a system of professional training (mentoring).

It is from the qualitative transfer of the MLM idea from person to person that the business of the enterprise ultimately depends.

From the consumer's point of view

It is convenient for the client to receive goods with a quality guarantee, he likes affordable prices, samples, catalogs. Often, direct selling companies have exclusive products and accessories that cannot be found in regular stores.

From the perspective of a distributor (entrepreneur)

People who want to start their own business without investment can succeed here. After all, the whole system has already been built, the market has been formed, most of the large companies are already on the lips of the population. In addition, a powerful system of training and mentoring in network marketing companies makes the opportunity to build your own business more than real.

3. MLM business industry - history and development trend

Network marketing originated in the West in the USA.

In 1945, American entrepreneurs Lee S. Mytinger and William S. Casselberry started their own business, becoming the national distributors of Nutrilite Products. The basis of their activities was the principle of recommendation (network) marketing.

Further, in the late 1950s, two companies were created in the USA: Shaklee and Amway. In Russia and the CIS countries, people are widely familiar with Amway products and the peculiarities of its business. The company itself was founded in 1959 by Rich DeVos and Jay Van Endel and was originally called the American Way Corporation.

The industry developed especially rapidly in the 1980s and 1990s. The range of products grew and by the mid-1990s, mlm-manufacturers offered their customers literally everything: from cosmetics and detergents to automotive products, household appliances, long-distance communication services and computers.

Today, the network marketing industry has undergone great changes and almost all mlm companies have gone online in one way or another.

In 1996, Russia established Direct Selling Association(rdsa.ru), which contributes to the development of the industry, its self-regulation and maintaining the reputation of the network business at a high level.

According to the Association for 2015-2016 in Russia, one way or another, multi-level sales are involved 6% of the total population(distributors), and these are millions of people, not counting consumers.

The Internet space has allowed the industry to develop at a rapid pace. And this is quite logical.

Example

You can now build your business in a network marketing company not only through face-to-face meetings at home or in a rented office, but also via the Internet, using the capabilities of Skype, e-mail and social networks. Advanced entrepreneurs create their own websites.

This is exactly how “networkers”, as it is customary to call distributors of products of multi-level companies, are now actively processing the online space in order to expand the membership of their group (branch).

However, the development of digital technologies has also given rise to another side of this industry - the emergence of fraudulent companies and financial pyramids, which, under the guise of investment funds or just respectable mlm-firms, draw honest people into illegal and immoral schemes.

Later in the article, I will touch on the issue of fraud and tell you what not to do and how to distinguish a reliable network company from a scam.

4. Why do many people today associate network marketing with a pyramid?

In continuation of the previous paragraph, as promised, I will reveal the “pyramidal question”.

The association with pyramids, deceit and fraud in people arises rather out of inexperience.

I must say right away that there is the concept of "classic marketing" and "network marketing", although it is very conditional. For the sake of completeness, let me tell you how they differ.

1. Classic marketing

These are all the ways and means of promoting goods that we are used to seeing around - advertising on TV, radio, outdoor advertising, and so on.

Selling goods in stores is also a standard way of promotion. As a result, all this can be attributed to the concept of "classical marketing".

2. Network Marketing

This is just an unusual way for the bulk of people to distribute goods. It, as you know, is also called multi-level marketing.

In this concept of promotion, there are no retail stores that are familiar to many, there is no standard advertising in crowded places, and the goods themselves, as a rule, are of a higher quality in comparison with their familiar counterparts.

Unusual for many, the model of distribution of goods instills fear in those who have heard about various kinds of deceptions or have already fallen into financial pyramids.

Dear readers, remember!

Network marketing has nothing to do with pyramid schemes, fraud or illegal activities.

Associations with the pyramid arise because both in the pyramid and in mlm you need to attract people in order to earn.

Only in the first case, you get money for "heads", that is, your earnings depend from the number of people involved, who invested money in the pyramid, and in the second - the income depends on the turnover that the clients you attracted will make.

That is, if we are talking about normal multi-level marketing, you can sign at least 1000 people into your structure, but if they don’t buy anything, then your income will be zero.

In the pyramid, the opposite is true, where each attracted is obliged to make a contribution, usually quite significant (from 500 to 5000 dollars) and you are guaranteed to receive a percentage of his money, and your client will not receive a real product. He pays only for the opportunity to earn money by attracting new “victims”.

Below, in the answers to frequently asked questions, I have clearly outlined the criteria by which you can distinguish a good mlm company from a pyramid scheme.

5. Network marketing on the Internet without investment - myth or reality?

There is no myth here and cannot be. Building your network business via the Internet is a new trend that is gaining momentum every day.

How to find a client in your mlm structure via the Internet - 5 proven ways to attract:

1. Social media. One of the most popular ways. You can create here a group (community) on the topic of earnings and self-development. The people who enter will be your potential customers. You can also “spam”, that is, send messages to everyone in a row, but then you risk getting your account blocked by the administration of the social network.
2. Thematic forums. In the forums about earnings and personal growth, you can also find future partners in your multi-level structure.
3. Contextual advertising. You can create a website and set up contextual advertising on it, thereby attracting targeted visitors. There is already an article on our site,. However, this method can be quite expensive for such a purpose.
4. SEO - promotion. By analogy with the previous method. You can make your own Internet resource and write articles on it containing keywords related to success, earnings and network marketing. Gradually, these articles will be promoted through the subscription form located on the site, and you will receive people loyal to your activities.
5. Lead generation. This method consists in creating a flow of contacts (applications) of potential customers whom you will attract with various advertising tools. You can learn more about what advertising is and what types of advertising exist from. You can process applications of potential customers (leads) and attract them to your multi-level marketing company.

You can use these and other ways to attract potential participants from the Internet to your network structure.

6. Pros and cons of network marketing - an overview of the main advantages and disadvantages

Network marketing, like any phenomenon, has a number of advantages and disadvantages.

That is why there are people who fiercely campaign for mlm, and there are those who are afraid of "network". For clarity, I have compiled a corresponding table that reflects almost all aspects of the SM:

Pros and cons of network marketing:

№	Comparison criterion	pros (+) criteria	Minuses (-) criteria
1	Opportunity to start your own business	You can open an MLM business with little or no investment and create passive income over time	Many novice distributors leave the business in SM, as it grows slowly and you often hear rejections
2	Doing Business Online	The unlimited possibilities of the World Wide Web provide practically limitless opportunities for the growth of your business.	Not all people will agree to cooperate with you and cost business with your company, since getting into an interested audience through cold contacts is small
3	Buying quality goods at an affordable price	In network companies, you can buy really high-quality goods, often their counterparts on the open market are either not available or are much more expensive.	Sometimes the products of multi-level marketing companies are unreasonably expensive, even if they are of high quality.
4	party, team	For many people in this industry, the very atmosphere of running an mlm business is a way of life and they feel “like a fish in water” here.	For most people, spending time at various seminars, trainings and events of such companies is tiring and does not correspond to their nature and psychological type.
5	Skill development, personal growth	In the process of work, you can acquire good skills in interpersonal communication, planning, leadership and management	There are not many people who are constantly striving for development, most prefer much more understandable ways of earning money, for example, regular work for hire
6	Reputation	It is believed that people with leadership and well-developed communication skills will certainly succeed here.	In society, the reputation of network marketing is significantly damaged, so finding like-minded people, and even more so turning them into your clients or business partners, is not easy.

If you have not yet decided whether it is worth doing SM, then the criteria described in this table will help you once again understand whether it is for you or not.

7. Rating of grid companies in Russia - list of TOP-5 market leaders in 2017-2018

The most interesting thing is that the first two companies Avon and Oriflame occupy 31% and 30% respectively in this rating. This means that these companies are far ahead of our citizens in the MLM industry.

As you can see, Mary Kay and Faberlic have almost the same market share, while Amway is somewhere in between.

In any case, I am sure that you have heard if not about all of these companies, then most of them for sure.

I consider them reliable and I advise you to work with these companies if you decide to go into network business.

8. FAQ - answers to frequently asked questions

These questions are often asked to me, and here I cite them with answers as the most popular.

Question 1: Should a newbie start a network marketing business?

Yes, it is worth it, but only if you are ready to wait a long time for the result (from 6 months to 3 years) and have a cash reserve that will “feed” you in a cashless period. I also advise you to analyze your strengths and weaknesses, objectively assessing your capabilities.

But if you get tired of communicating with people and have a hard time enduring rejection, then you better not rush into this pool with your head.

Question 2. How to earn the first money in network marketing?

To do this, find 2-3 customers and simply sell them your company's products, after registering as a partner in it.

Then you will feel the "taste" of the first money. Perhaps it will be a very small amount: from 100 to 1000 rubles, but it will already be your money earned in direct sales.

If you want to get a more serious amount, then find 3-5 people who plan to build a business with you. Help them find 3-5 more people for each and in a few weeks your income will grow to several thousand rubles a month and will increase as your "branch" grows.

Question 3. What and how can you attract people to network marketing today?

Today, you can attract people to network marketing, as always, with the idea of ​​​​earning prospects, creating passive income and a free (flexible) work schedule.

The quality of products and the range of direct sales companies is constantly growing, so to say that we have high quality products is no longer so appropriate.

But if you show the convenience of working with the company's website and the possibility of doing business via the Internet, this will definitely impress your potential partners.

Question 4. How to distinguish network marketing from a pyramid scheme?

It's no secret that some scam companies tarnish the honor of decent MLM businesses and masquerade as them.

How to distinguish scammers? There are some characteristic signs of dishonest firms:

Here they are:

1. Unreasonably high entry fee. As a rule, it is from 100 to 5000 dollars. It is from this money that the remuneration to the “distributor” is paid.
2. The product, as such, either does not exist at all, or has no market value outside of this organization.
3. There is no documentary confirmation of the fact of receiving money and other relevant documents (invoice, contract, checks, etc.);
4. You are told that you will receive money from number of attracted participants rather than from the turnover structure.
5. The focus of the organization is on quick money , and the product (if it exists) is needed only as a cover for the activity of the pyramid.

If you notice at least one of them in the company where you are invited, you should thoroughly study it for fraud and the legality of doing business.