What is network marketing - a 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 only allow a lucky few people to make money.

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

Today, by reading this article, you will learn what the essence of network marketing operations is all about.

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

What is Network Marketing: A 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 a product.

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

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

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

All complicated things started with a banal approach.

Karl Rehnborg grew alfalfa on his plot. At that moment, an idea came to his bright mind:

"But what if all the nutrients 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 purpose.

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

It is interesting that out of the kindness of his soul (there are no other reasons for this) Karl distributed goods just like that, without demanding any money in return.

What do you think, has there been an effect from promoting free, useful products?

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

Karl Rehnborg came to an unexpected conclusion: if a food supplement is sold at the average market price, and not just distributed to friends, there will be demand.

And hit right on the spot!

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

Renborg's friends started buying his wares. It no longer seemed to them that it was a cheap deception for one simple reason - it ceased to be cheap.

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

They consisted of a percentage of the sale of the nutritional supplement. Now, do you know how a standard network company works? And that's how it all began.

The result of the work of Karl Renborg:

• 1934 Karl founds California Vitamins, expanding the range of products it markets.

In 1934, Rehnborg renamed the company to Nutrilite Products.

The principle of operation remains the same.

A whole network of distributors of products, the so-called partners, was formed.

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

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

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

What is modern network marketing: terms and definitions

Network marketing Is one of the types of retail sales of products based on direct, direct interaction between sellers and consumers.

A feature of network marketing is the ability of each client to become a distributor.

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

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

Let's figure out the main components.

The first stage of the pyramid: manufacturer - distributor

The first stage of the MLM scheme is that the manufacturing company provides its products to a partner.

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

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

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

• mandatory use of the manufacturer's products by a 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.

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

Second stage: partners of the second order

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

Each partner who was invited by a participant of a higher level (level 1) performs all the same functions as his curator.

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

Each participant, in the end, seeks to form his own structure, as it brings real income in the form of dividends from their own sales and the activities of "subordinates".

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

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

Stage Three: Entry-Level Partners

Lower-level partners differ from founders only in that they have less income. At the same time, functional responsibilities, as a unit of MLM, are unchanged.

Work at the first or second level presupposes the manifestation of maximum activity not in the sale of products, but in the promotion and formation of our own structure.

The subtotal should be summed up:

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

The explanation of this process is very simple - each subsequent distributor 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 been taught by the bitter experience of pyramid schemes.

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

The positive aspects of network marketing

Lack of a linear leadership system.

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

Close-knit team.

Each partner is interested in supporting "junior colleagues", as it brings him financial benefits.

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

Supervision is the backbone of a network business.

Possibility of continuous growth.

Another positive thing about MLM.

It all depends only on your abilities, including earnings.

A very powerful experience in interacting with people.

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

Networked business can be viewed as a platform for the further implementation of your own.

Flexible schedule.

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

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

At least in the early stages of activity.

Negative sides of network marketing

Possible destabilization of the network structure at any moment.

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 collapse of the entire structure, as the long experience of MLM participants proves such a possibility.

Uncertain payment standards.

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

As a result, partners took loans, mortgaged property, and the company paid less than 25% of the announced amount.

It is not difficult to guess what kind of material damage the clients received.

The 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 structure of clients is expanding, they also make deposits, buy 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 the participants are left without profit.

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

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

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

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

A feature of work on a network scheme is constant responsibility for their work + training and control of partners of a lower level.

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

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

Network Marketing: Choosing an Employer

Your network income and confidence in stability depend on the right choice of employer.

First, you need to consider the possible options for the business space in Russia.

Top 5 Russian MLM market

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

The main criterion for choosing an MLM company is experience in the market. The explanation is very simple: you will get the expected result, verified by others.

Working for “newcomers” to 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 in the video:

What is network marketing? After reading the article, you are already in a position 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% certainty - making money working in the MLM system is possible and cannot be argued with.

A completely different question - will you be able to do it?

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Many people are still surprised by the fact that there are very few men in network marketing. According to unofficial data, about 5-7%. And even of those who come to MLM, few succeed. (For a long time now I have a seminar for men - What should a man do in order to fly to the top of the career ladder in a year! - but they will not do it).

So why are there few men in MLM? The answer is obvious. Let's go in order:

- The overwhelming majority of men cannot do their daily scrupulous business!

Women are the opposite. They have it genetically. Every day a woman cooks, washes, irones, cleans, washes, etc. It's either in the blood, or out of despair - someone needs to do it. And She does.

A man either does something global, grandiose, or, having calmed down that he is not capable of big things, does nothing - "I can’t be global, but I will not deal with small things either."

In network marketing, especially at the initial stage, you need to make every day - calls, meetings, negotiations or a website, blog, posts, mailings, etc. Even showing a man the global nature of network marketing, he can catch fire, but when faced with an initial routine and not a momentary result, he goes out. He needs to immediately sell the car and see decent money. Ha, times are not the same, the 90s are gone forever.

- Men in the majority are not attentive not only to women, but also to men, and to themselves.

Women are more talkative, more compliant, more quickly adapt to the situation, more attentive and, perhaps, more difficult to endure. A woman pays much more attention to herself than a man. By the way, most of the clients are women too.

A woman not only loves with her ears, but also lives with them, and therefore communication for women is food for life. A man loves with his eyes and lives with his eyes - why talk? Looked and bald.

Why make unnecessary sentences from words ...

And in network marketing you need to communicate, you need to be attentive to people, partners, customers. When I realized all this, I stopped "sweating" about the small number of our brother in network marketing.

On the other hand, I started to admire women in MLM. She is both a woman, a mother, and a housewife, and she works in her “main” job and also builds a business in network marketing to get rid of everyday routine, to improve herself, to get on her feet, since “he” is lying on the couch. To achieve something worthwhile in this life!

Our women can do everything! I would like, of course, that a woman was not all that one has to be, but a woman. But MLM women can do anything and still manage to remain women!

I admire you, women of network marketing! I respect, appreciate and love!

I liked the song in which Sergei Trofimov sings about a Russian woman. But about you this is a song in principle or not, I don’t know. What do you think?

(MLM) - women. Why are men less active in the network business and what are the real prospects for men to become successful in the network business and get rich?

Network business people are divided into 3 categories:

• consumers;
• distributors (distributors);
• leaders.

Consumers - people who come to the Oriflame company to buy products cheaper than the price in the catalog, that is, at the distribution price. Such people make up 70-80% of the total number of distributors in the company. Historically, it has been the women who shop in the family.

Distributors - people who, in addition to saving from buying at a distributor price, use the opportunity to earn little money on direct sales, that is, by showing catalogs and collecting, fulfilling orders.

The direct selling process is time consuming and, therefore, does not make a lot of money on it.

Naturally, men cannot be interested in these first two possibilities in principle.

Leaders - people followed by others, whose success they look up to. Men, as a rule, are not interested in the company's product, but in how much money they can earn. When a man considers business prospects, he looks for answers to the questions:

1. Is the business reliable?
2. How much can you earn in this business?
3. Is it possible to assert yourself in this business?
4. And most importantly: Would his reputation be damaged if he went into a “women’s” business - network marketing?

Oriflame company has been on the world market for 45 years. Annual sales of $ 1.3 billion, annual sales growth of 25-30%. Oriflame is one of the three leaders in network marketing companies.

Marketing plan Oriflame (consultant remuneration system) is recognized as the best in the world of networkers. Having started (that is, without investment), you can earn up to 750 thousand rubles per month.

The network business allows you to receive from a certain moment, that is, you are financially protected during vacation (you yourself determine when, how much and where to rest), during illness and in case of unforeseen circumstances.

Numerous examples the success of men in the network business testify that by competently developing your business, achieving financial success, you get public confession from the management of the company, from your colleagues and members of your team.

Success in Oriflame encouraged how monetary (bonuses for moving from one level of the Ladder of Success to a higher one from $ 1,000 to $ 1,000,000), so and expensive gifts : a Volvo executive car, free participation in international conferences held by the company in different countries, with accommodation in the best hotels in the world.

After answering the previous questions, the answer to question 4 is obvious: Your reputation among friends, relatives will not only not suffer, but, on the contrary, Your social status will become very high.

Your business success will work to increase your business, since people will come to your team precisely for your success.

Another factor that speaks in favor of men's choice of network business is active introduction of the Internet not only in ordinary life, but also into business This is especially true for the network business, where people get their main income from communication and inviting other people to the business. And this is the best way to do it through IT-technologies!

In confirmation of my words that the network business, business with Oriflame is a men's business, I bring to your attention a short video about the celebration of the team of Eduard Vasiliev at BMW in Moscow in 2010, more than 100 successful men on the stage:

So, if you want to be successful and rich, you will make the right choice, namely, business with Oriflame.

If you want this passionately, I will help you: I know how to create a business from scratch and what it means to be a successful, positive person!

MAKE THE RIGHT CHOICE!

The standards of modern education allow, even from the senior school years, to determine the specialization of future activities, develop it in higher and secondary specialized educational institutions, and improve it during educational practices. As a result, most of them enter the market as fully formed young specialists in their field. Further career advancement depends on many factors, including personal ones. Someone reaches considerable heights, going to the top, someone is content with average positions. One thing is inevitable - by a certain age - retirement - everyone reaches their "ceiling" and goes on a well-deserved rest.

Where to run?

Limited opportunities for advancement, the maximum possible level of wages, age restrictions for starting and ending a career make us look for alternative ways of earning money, self-development and self-realization. The most obvious, surface idea of ​​starting an individual business. However, the process of starting, running and developing your own business is fraught with many difficulties. Among them are legal subtleties, and large material, time costs, and risks. A logical question arises: where to run, where and what to do?

Prospect statistics

An alternative to traditional employment and starting a business, according to the classical scheme, was proposed in 1934 in America. Karl Rehnborg founded California Vitamins Inc. (renamed Nutrilite products) to market his nutritional supplement. Ten years later, in 1945, entrepreneurs Lee Mütinger and William Casselbury became national distributors of this company, basing their work on the principles of modern network marketing. Then, in the late 50s, all in the same America, Shaklee and American Way Corporation (Amway) were founded, which became the largest representatives of the developing MLM sector.

MLM (Multy-Level Marketing) - multi-level / network marketing, i.e. multi-stage sales. The expression Multi-Level (multistage) means a system of rewarding people who deliver a product or service to the consumer. Marketing - marketing (sale) means the promotion of a product or service from a manufacturer or supplier to a consumer (buyer). MLM-concept for the sale of services / goods, which is based on the creation of a network of independent consultants, each of whom is engaged in the sale of products and attracts partners with similar rights. Each of the network participants receives a reward for the independent sale of goods, as well as an award for the distribution of products by downstream partners of his network.

Since the middle of the last century, network marketing has evolved significantly towards progressive development. According to statistics, more than 120 million people in the world work in companies whose activities are fully or partially based on the principles of multilevel sales. In the homeland of MLM, in the United States, about 70% of the population actively use the products provided by network marketing companies.

Japan is even more encouraging. The situation is more modest in the CIS countries. Network marketing has come to Russia relatively recently. And the start of its development in our country turned out to be partly unsuccessful. The reason for this is the well-known economic situation of the 90s, against the background of which the population "fell on the street" of financial pyramids, which had not the slightest relation to serious decent MLM companies, but were steadily associated with them. Gradually, the stereotypes around network companies dissipated, they firmly established themselves in the domestic market and now provide the population with high-quality essential products.

Three questions

When deciding to enter the network business, three fundamental criteria come to the fore: reliability and prestige, money, opportunities and working conditions. The network company is also selected in accordance with these criteria.

Money

Myth. Networked business is a hobby that does not generate income or can be ruinous. The myth is born of a misconception about the principles of network marketing and its association with pyramid schemes.

Fact. Today, working in a reliable network company is a real business that can bring substantial income. As for reliability, there is a list of criteria that a network company must meet: from a promising product to a place on the market and a realistic marketing plan.
The Secret of Beauty company offers unisex cosmetics for men and women of all ages. It has won the trust of consumers, its properties are confirmed by the results of scientific research, which are documented by certificates and certificates.

Reliability and prestige

Myth. In Russia, the idea is alive that working in the network industry is the business of women. The reasons are the same. Having appeared in the 90s, network companies attracted mainly the female half of the population.

Fact. According to statistics, 56% of distributors of chain companies in the United States are men. They are the founders of the industry. Most of the world's "sharks" in the field of network business are men: John Calench, Randy Gage, John Milton Fogg, Tom Schreiter, Don Feilla ... At the beginning of the new century, the situation has radically changed in Russia. Men began to turn their gaze towards the MLM business, earning decent money and becoming leaders of structures. Men with very different income levels go into the network business: from teachers and engineers to top managers of reputable companies. And the Russian network market has its own stars, men's names have appeared in the ranks of the leading leaders of the largest network companies in our country.
In the "Secret of Beauty" Company, male consultants work successfully in many cities of the country and receive remuneration in accordance with the achieved level of sales and structure building. Male Consultants represent a wide variety of professions. For some, the Secret of Beauty business is a hobby, an aid to the main job, which brings additional income. For the latter, it is the main source of income and career development.

Possibilities

Myth. Working in a network company - primitive sales through calls and door-to-door visits.

Fact. The foundation of a network business is building a structure. Only a small part of the work is the direct sale of products to a circle of regular and partly new customers. The main time is making presentations, training your junior, new partners.
The Secret of Beauty is a network company developing in line with the world's leading MLM trends. We provide Consultants with a well thought-out profitable marketing plan. To optimize the work of the Consultant, there are convenient exclusive sms and Internet services, marketing products.

To go or not to go?

So, MLM in Russia has long ceased to be "an occupation for housewives" and has entered the level of serious business. The ranks of the country's leading networkers are men who receive a decent income.

It is up to everyone to decide whether or not to follow the network ladder path, but the undeniable advantages of networking are obvious:

1. The ability to start and run your business in parallel with your main job.

2. Low initial investment.
To start working as a Secret of Beauty Consultant, you need to sign an Agreement and purchase a Starter Pack of marketing materials for product and business presentation.

The first two points are for. And they say there are no risks. This is especially important for the average man, who provides the basis for the well-being of the family.

3. High income potential. In the "Secret of Beauty" Company, the Consultant receives remuneration in proportion to the level of development of the structure.

4. Controlling your own costs: time, financial, emotional. As already mentioned, you can spend as much time and effort as you see fit.

5. Personal and career growth. Networked business is constant communication with people, improvement and application of skills in practice. In addition, the Secret of Beauty provides training from the Company with the involvement of leading specialists from the domestic network industry.

Now there is a lot of talk on the Internet about the network business. And for some reason, the Russian people have developed such a stereotype that the network marketing industry is not a man's occupation. And MLM should be dealt with only by mothers on maternity leave and those who are not able to "normally" earn money.

In this article, I will prove to you that network marketing is a business for men. And it is men who do this business correctly and truly. Women approach business from an emotional side and often make mistakes on these emotions.

My name is Alexey Nesterov and I have been in the network business since 2015. The direction in which I work is perfumery and body and hair care products, as well as home care products in the company. And that I just didn’t hear about myself!) I once worked as a loader and everyone told me that this is not a men's business, my wife should be engaged in this, and I, as a man, should work in a “normal” job, namely, carry pieces of iron and strain your back, earning 25,000 rubles. per month. But for that proud and Muzhik!

In general, according to the majority of "successful" citizens of our country - "A real man should be morose, hairy and smelly!"

But now see for yourself! Business is business! And it does not matter in what direction you work - whether it is perfumery or construction. Business is when you build a system that then works for itself, and you get money for it.

So, why is it profitable to build a business in the direction of beauty and health and why I consider this business to be truly masculine.

Look: the beauty and health market is actively developing today, because the times when everyone was supposed to be the same and not stand out are over, and today everyone wants to look original, interesting, smell bright and tasty!

Just remember how many shops that deal with perfumes and cosmetics have opened in your city over the past year? I'm sure a lot! Do you know why? And because this business really brings a lot of money to their owners.

So why don't you go into this business? Why don't you make money in it so far?

And if you decide to link your activity with network marketing, you can also free yourself up a lot of free time! I have described the advantages of network marketing. By the way, read the development in MLM business. There are also my contacts and be sure to add them as friends!

So, as you can see, network marketing is a man's business and men in MLM really achieve great results!

If you still have any doubts about whether to start doing network marketing or not, I highly recommend that you watch this short half-hour film about types of income, prospects and how the MLM industry works.