Rating of MLM companies in Russia. Network marketing: companies in Russia - list Network marketing rating

Alexander Kaptsov

Reading time: 13 minutes

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Every year a healthy lifestyle attracts the attention of more and more people. This circumstance is actively used by MLM companies, which, through direct sales, sell a wide range of goods and services for restoring and maintaining health. Many of them managed to show high performance results even during the crisis.

MLM business - the path to stable income

are unique business entities that are distinguished by the presence of representative offices in many countries around the world and the sale of their products through a wide network of distributors (direct sales mechanism).

What are the benefits of the participation of sales consultants in the network business:

• Commission payments are formed as a bonus not for sales, but for promoting the company’s products.
• Opportunity to purchase goods for personal use at the best prices.
• Work in a legally registered company with bonuses and career opportunities.
• Availability of mentors, free training and a clear marketing plan for product distribution.

The sale of health products is a key area, along with the sale of cosmetics. Significant demand stimulates the development of this area and attracts more and more distributors into it.

Important point: The sale and promotion of this type of product is possible online and offline (through specialized websites and pages on social networks).

TOP 20 MLM companies selling health products

• Agel

It is a relatively new and promising network company (established in 2005, entered the Russian market in 2012), which sells health-improving suspension gels.

5,7%

• Brain Abundance

A unique MLM company that promotes a specific dietary supplement, BrainFuel PLUS, which is designed to normalize brain function. This supplement also helps treat other diseases and strengthen the immune system.

Sales growth in 2016: 0,3%

• Coral Club

The largest Russian network corporation that sells dietary supplements with a wide spectrum of action.

Sales growth in 2016: 9.5%

A Swiss MLM company that sells elite healthy food, the most popular option of which is the Baobab Life menu.

Sales growth in 2016: 3.9%

A promising network company from Kazakhstan, which sells unique health products from Shungite (cosmetics and dietary supplements).

Sales growth in 2016: 10.3%

A large Chinese corporation that actively promotes natural health products - dietary supplements, nutritional supplements and cosmetics. It has been developing the Russian market since 2011.

Sales growth in 2016: 1.5%

Another Chinese network that is very successfully increasing its sales of unique tourmaline products - mattresses, bracelets, rugs.

Sales growth in 2016: 8.6%

• iHerb

A very popular American MLM company that sells products for a healthy lifestyle (mainly food and dietary supplements) in an online store. It includes only one level and therefore many marketers refuse to consider it as an MLM company.

Sales growth in 2016: 3.3%

A world-famous Chinese company with luxury products for health and beauty. It is distinguished by the high cost of goods.

Sales growth in 2016: 0.4%

A new network company, which was opened in Berlin in 2015, but is already very actively conquering the market, engaged in direct sales of sexual health products.

Sales growth in 2016: 12.6%

A wide-profile Japanese corporation that sells products for restoring and maintaining health (herbal teas, dietary supplements, weight loss belts, etc.)

Sales growth in 2016: 4.7%

An American network company with a worldwide reputation that promotes natural health products of the highest quality at a very high cost.

Sales growth in 2016: 2.1%

• PranaFood

Russian MLM company, founded in 2014, but demonstrating high growth rates. Its main activity is the sale of functional cocktails for health.

Sales growth in 2016: 7.4%

An American chain corporation that has been effectively selling a wide range of healthy food options for many years.

Sales growth in 2016: 5.0%

A Russian network corporation, operating since 1994, which sells a wide range of very popular dietary supplements in Russia.

Sales growth in 2016: 0.8%

• Xango

A world-famous network that sells a unique product - juices from exotic fruits and berries, which have a beneficial effect on the treatment of certain diseases, restoration and strengthening of the body.

Sales growth in 2016: 1.4%

Another successful MLM company engaged in direct sales of health-improving juices made from wild blueberries from Alaska, as well as iznoni drinks, acai, etc.

Sales growth in 2016: 2.7%

A domestic network company that sells a variety of Chinese health products.

Sales growth in 2016: 3.1%

A well-known Russian company that has been developing and selling natural dietary supplements, cosmetics and personal care products for many years.

Sales growth in 2016: 2.8%

The most popular MLM company from China, which distributes a wide range of health products all over the world.

Sales growth in 2016: 6.9%

The market for online sales of health products continues to actively develop - new participants are appearing on it, while the old ones continue to demonstrate growth in sales volumes. At the same time, if distributors of well-known MLM companies can count on stable and reliable income, then consultants of new companies open up opportunities for quick and large earnings.

Wow, this has turned into the most popular MLM article on the Internet, with over 1 million views!

Here are the top 25 companies according to Business For Home based on trends and your ability to make money in 2017:

# 25. Empower Network

Back in 2013, co-founders Dave Wood and Dave Sharp looked like Tupac. Empower Network had a cult following and their message was unapologetic: "Don't be a damn wussy and buy all the products."

Somewhere along the way they stopped updating their original digital products and the vision was lost.

These days, you can hop on a random Empower Network webinar and still see Dave Wood spitting knowledge from his mansion in Costa Rica. All the original leaders are gone except Lawrence Tam and Tracy Walker, but Dave Wood is never reckoned with.

# 24. World Ventures

World Ventures makes the list to make network marketing look "fun." The vacation membership company is targeting millennials with a slick campaign that shows people posting travel photos with the captions, "You should be here."

No other MLM has come close to nailing the junior market minus Wake Up Now and Vemma, both of which left in 2015. Maybe a bad sign? However, you would think that more MLMs would catch on to Instagram-focused campaigns. Calm or not, it seems to be working.

# 23. Wealthy Affiliate

Ask any wealthy affiliate member if they are an MLM and they will probably scold you.

While not technically an MLM, Wealthy Affiliate offers hosting and a robust digital product line that compares itself to other MLM digital product companies (see Digital Altitude, Tecademics, MOBE, MLSP, Empower Network).

Give them credit though... they are still one of the largest digital communities in 2017.

# 22. Nerium

Nerium slipped.

It seemed like a nasty lawsuit was dividing the company (1), but they were still hanging around as one of the best skin care options in network marketing.

They have badges to prove their worth: Inc. 500, DSA membership and some sponsorships.

# 21. Usana

Usana makes the list by pure numbers ($918 million in revenue in 2015) (2).

Their forecast doesn't look very pretty, but they don't tank.

However, they have been voted one of the "50 Best Places to Work" and they have collaborated with the controversial but iconic Dr.Oz. Think about what you like about Dr.Oz, but it's actually a humble endorsement in network marketing.

#20 Makeup Mary Kay

I know, go right now to a fifty-fifty-year-old aunt. For half a century, Mary Kay has dominated the beauty world, and they are still considered visionaries. What other 50-year-old beauty business won Best Website and Best Facebook, Pinterest and YouTube? (3)

And they don't just "hang on," either.

They sold $4 billion in 2014 (4) and their worldwide sales topped the 3.5 million mark. They remain one of the largest direct sellers of skincare and cosmetics products, no small win for this cutthroat industry driven by fickle consumers.

# 19. Nu Skin

Where there are Mary Kay and Amway, Nu's skin easily turns the club into a billion dollars. With annual sales of over $2 billion, they are top list candidates and they are a clear network of network marketing veterans.

However, they are not as hot as they were 5 years ago, and it is hard to say whether they will be on this list in 5 years. They donate a lot of money to charity, but they've had their share of scandal and affairs, so it's hard to say what their image is these days.

One thing I know is that I have never met anyone under 30 who promotes Nu Skin and I lived down the street from them for 5 years.

# 18. Avon

The only MLM that can rival Amway's fortune, fame and size is Avon. With over 6 billion in revenue in 2015 and worldwide recognition, they are already in the MLM hall of fame.

Although they slide. Revenue is falling in North America and their sales force is being cut. Revenue declined 19% in 2013 and 7% in Mexico. Skip forward to July 2015 and revenue still continues to decline, with a 17% drop (5). Analysts blame Avon for failing to maintain a strong identity for its products as well as a strong dollar. Lesson: Always reinvent yourself.

# 17. Arbonne

With three decades of selling skin care products, Arbonne will soon be up there with Mary Kay in terms of ancient relics that still press lotions.

A huge success here, with annual sales exceeding $502 million. However, as with Nu Skin, trends will show that they are past their glory days.

Their science is tight, their management is blue chip, and their products are constantly updated and updated for new generations. Arbonne represents the best of what other MLM sciences should hope to be. Lock for cosmetic companies.

#16. Herbalife

Rest of the world: Hello, how are you?

Herbalife: NOTHING TO SEE HERE.

Herbalife is massive. Top 5 Income? All day. Top 5 in brand awareness? Probably top 3.

However, Herbalife has been universally criticized by the media (their fault or not? Doesn't matter, still hurts them) and have become almost synonymous with "pyramid scheme".

Good news: They recently settled with the FTC and agreed to pay $200 million to former distributors. Probably not a good look, but that didn't stop the students from continuing to stay with them.

# 15. Beachbody

You must have heard about the P90X and Insanity workouts, right? These gloriously sweaty workout DVDs are sold through network marketing thanks to BeachBody.

Beachbody is honored for its high revenue and massive acceptance of its products. Both are testaments to what MLMs can be: a Great Products-First-And-The-Money-Will-Follow company.

# 14. Scentsy

Lifeless, scented candles explode, if your big sister hasn't already told you so. The product is innovative. Flameless candles. It's simple: people love their products.

Idaho-based Meridian competes with doTERRA for the top word-of-mouth marketing award (and perhaps most likely for the spam award from your Facebook timeline), but their annual sales are $537 million. They are one of the few companies I would bet on in about 15 years.

# 13. Pampered Chef

Will high-tech kitchen gadgets get hot? Chef's Pampered Products were made to be sold at house parties, which is why this company is still putting the numbers together.

Unofficial Assistant Chef for Recruitment:

Step 1: Invite your friends to come and watch Scandal

Step 2: Ask them to watch the presentation later and pull out their credit cards

Just kidding, I guess. They were super hot, but they cooled down. The Berkshire-Hathaway facility was recently profiled for lower earnings and job layoffs.

# 12. Forever Living

Forever Living probably deserves a spot because of its long-term commitment to the aloe vera plant and products made from it. Aloe vera is hot right now.

Rarely do you see a plant rise steadily over the years. It screams longevity over hundreds of other full service companies. Founded in 1978, they have made the Forbes 400, Inc. 500 and $2.6 billion in revenue.

Further Reading: The ONE Most Effective Way to Kill Your Job (Non-MLM)

# 11. Isagenix

Search trends show Isagenix neck and neck with Advocare, so they're buzzing nicely these days.

They are still one of the hottest network marketing companies out there, although I'm not sure what sets them apart from all the other nutri-MLMs out there. They don't have sponsors like Advocare, but maybe that could be used to say they pay distributors more?

Overwhelmingly positive product reviews on Amazon, a solid sales pipeline, and strong sales make this a top 15 lock for 2017.

# 10. Amway

If all that mattered were revenue numbers, Amway was #1 or #2 (behind Avon).

What an interesting move they made. Amway is so universally accepted that it has become a household word and a joke ponzi scheme at the same time. It's hard to get away with it. However, you can't deny winning numbers like 9.5 billion dollars (8) and 3 million distributors. Or call the rights to the NBA arena.

Brand potential for Amway? Aaron Gordon is blossoming on poor men Blake Griffen, and the Amway Center is getting more runs on TNT and ESPN. That is all I have.

# 9. Global Wor(l)d Network

Wor(l)d Global Network is on fire and they are pushing the wearable technology trend. I'm not crazy, but this is really great.

I don't know what will be around them in 5 years, but they are hot right now. Their latest release is a health tracking and disease management bracelet called .

They've also generated $157 million in revenue, and they're just getting started. This is an innovation, these technologies will be used in all smartphones in 5 years.

# 8. Ambit Energy

Ambit has amazed the Inc 5000 for 3 years in a row and they seem to continue to trend. They promise lower fixed prices for natural gas and electric services, so they are decidedly less sexy than most of the network companies on this list. And that's probably why they thrive. No glitz or glamour, just practical savings.

# 7. young living

The essential oils are still hot. And YL was the first in this category. Used for healing, cleansing and beauty, essential oils are natural, have few side effects, and have hundreds of home applications.

Their lavender fields are famous and they control every aspect of production from planting to bottling, so quality is a big deal with this line. Founder Gary Young is known for setting quality standards for the entire essential oils industry.

So, what's not to like? Let's just say it rhymes with "Moterra."

# 6. advocacy

Last year's #1 ranked network marketing company had a bit of bad PR and slipped a bit.

A recent ESPN report (10) was a borderline hit, covering mostly the negative aspects of network marketing, leaving the reader with ex-distributor quotes like this: "You're catching people in a bad place who have hope that this might be a way for them to pay for their credit card and their children, and you are exploiting them."

Oh. However, the Brees are still rolling with em and they have the endorsements, products (Spark), programs (24 day challenge) and revenue to be 10 locks.

# 5. Tecademics

"Tec-a-who?", you think.

Chris Record's new venture is an "online internet marketing education" that is still in the works, so it's the calm before the storm. Students can attend a real classroom setting (I believe in Scottsdale) or learn online.

The fact is that to date the dude has not launched a single venture, and he already has a team staffed with major league Internet marketing. Yes, this ranking is based on speculation, but Tecademics will be on my short list of MLMs to consider in 2017.

The concept makes too much sense. I'm just saying.

# 4. Digital Altitude

What happens when you create a custom eLearning development program focused on digital business for aspiring entrepreneurs? And encourage affiliates to spend up to $25K on programs, masterminds and digital retreats?

Correct Answer: A bunch of internet marketers got rich

Digital Altitude isn't just a sexy game because their training teaches distributors how to promote products, allowing them to automate and scale past a list of family and friends or approach the well-dressed people at Wal-Mart.

That's why it's hot and will likely stay hot for a while.

# 3. Younique

In early 2017, 60% of Younique was sold to Coty for $600 million (11), bringing their valuation close to $1 billion.

Clap for them.

Good news for distributors: Derek Maxfield and management are still on the move, and the social media beauty product management company is still thriving with their 19 lipsticks and 39 moisturizers.

Younique has exploded in Utah in the last few years, driving the market for beauty at-home parties for women who want initiation. Powerful messaging that works.

# 2. Jeunesse

Another winning product line here. Jeunesse products work super, super well. Even MLM cynics should show some love for a product that gets rid of wrinkles:

People will always want to look younger, and instantly ageless cream continues to excite.

They were the #1 fastest growing direct selling association on the Inc 500 and poached by Alex Morton in the months before Vemma left in 2015. SavageAF?

A trend and a product that works really, really well? This is a rare occurrence in network marketing.

# 1. doTERRA

A recent third party study (13) found that 9 out of 10 people living in the Eastern United States have never heard of doTERRA.

Translation: they're poised for exponential growth.

DoTERRA has had a cult following in Utah for some time (33% of consumers in the Rocky Mountain region), but now people all over the world are becoming strangely passionate about using essential oils.

Capitalizing on millennials who love to go "all natural," doTERRA is buzzing from church parking lots to your married, twenty Instagram sisters. After only five years in business, they landed a $60 million position at their headquarters in Pleasant Grove, Utah.

Young Living's doTERRA dope started much later (2008) and manages to have momentum.

Result: they are the clear leader in the essential oils market (a trending, marked niche), making doTERRA my #1 MLM pick of 2017.

Summary:

Look, honestly, I applaud anyone for looking at network marketing companies because it shows that you are trying to do something about your current financial situation.

It's hard to knock.

Now, should you join any of the above companies? Brief history: MLM is a job for many, but not for most.

Network marketing companies generally have good intentions, but the industry is flawed.

Lemme explains some of them:

1) Low barrier to entry

Just: companies choose the multi-level marketing model because MLM companies are cheaper to run and cost less to operate. By outsourcing this work to a distributor, the company saves $1,200 per employee annually.

Now you have thousands of trained marketers supporting the hot trend and ultimately becoming the “middlemen.”

2) Artificial supply and demand

Simple: Network marketing companies get into trouble when most of their sales come from new recruits rather than from outside clients.

The FTC continues to go and monitor these companies (Herbalife, Vemma). If you need to buy a bunch of product to join an MLM, that's a problem. This is called production hype.

Think about it: Why else are so many MLM companies mysteriously re-launching or re-launching? This is all about new registrations.

Obviously, there are always exceptions, but these disadvantages apply to most network marketing companies.

Ask yourself an uncomfortable question:

Am I pretending to love these overpriced products to hide the truth, meaning I'm selling an opportunity to make money? Moreover, statistics say that this is almost always the case!

Too honest?

And yet there are wayyyyyyyyyy better ways to quit your day job and live the good life.

Top 100 direct selling news 2017– the most significant rating for network companies. This event is awaited by many companies around the world - why?

The annual DSN Global 100 ranking is compiled by Direct Selling News magazine. A reputation for positive industry reporting has made DSN magazine a trusted journalistic resource for the direct selling industry. Since 2004, the magazine has focused on 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 2017 is a list of the most profitable direct sales generation companies in the world for 2017.

This indicator is very important and shows the stability of the company, their growth and development.

You can also get acquainted with the best system for building an MLM business in the CIS and EUROPE

A system for building large structures in the MLM business. Information from practitioners! Click to find out...

2017 DSN Rank MLM company	Company	G100 2017 Revenue (FY2016)
1	Amway	$8.80 billion
2	Avon	$5.70 billion
3	Herbalife	$4.50 billion
4	Vorwerk	$4.20 billion
5	Mary Kay	$3.50 billion
6	Infinitus	$3.41 billion
7	Perfect	$3.06 billion
8	Quanjian	$2.89 billion
9	Natura	$2.26 billion
10	Tupperware	$2.210 billion
11	Nu Skin	$2.208 billion
12	Primerica	$1.52 billion
13	JoyMain	$1.49 billion
14	Jeunesse	$1.41 billion
15	Oriflame	$1.38 billion
16	New Era	$1.16 billion
17	Telecom Plus	$1.12 billion
18	Belcorp	$1.09 billion
19	Ambit Energy	$1.08 billion
20	USANA	$1.01 billion
21	Pola	$1.004 billion
22	young living	$1.00 billion
23	SUN HOPE	$940 million
24	DXN	$927.0 million
25	WorldVentures	$926.6 million
26	Isagenix	$924.3 million
27	Yanbal	$924.0 million
28	Team Beachbody	$863 million
29	Market America	$798 million
30	A C N	$750 million
31	Stream	$735 million
32	Tiens/Tianshi	$695 million
33	It Works!	$686 million
34	Team National	$659 million
35	Yandi	$644 million
36	Miki	$597 million
37	AdvoCare	$586 million
38	Arbonne	$541 million
39	Plexus Worldwide	$532 million
40	Rolmex	$515 million
41	PM International	$460 million
42	Scentsy	$456 million
43	LegalShield	$450 million
44	Le-Vel	$449 million
45	Omnilife	$375.93 million
46	YOFOTO	$375.92 million
47	Fordays	$365 million
48	Faberlic	$356 million
49	Kang Ting	$348 million
50	Nature's Sunshine	$341 million
51	4Life Research	$328 million
52	AnRan	$321 million
53	Naturally Plus	$300 million
54	NHT Global	$288 million
55	LR Health & Beauty Systems GmbH	$286 million
56	Merro	$283 million
57	Menard Cosmetics	$267 million
58	Family Heritage Life	$265 million
59	Viridian+	$263 million
60	Pro-Health	$257 million
61	Noevir	$249 million
62	Hy Cite Enterprises	$233 million
63	Resgreen	$232 million
64	KK Assuran	$229 million
65	Take Shape For Life	$222.4 million
66	CUTCO	$222.0 million
67	Southwestern Advantage	$218 million
68	LifeVantage	$207 million
69	Kangmei	$206 million
70	Pure Romance	$203 million
71	Alphay International	$200 million
72	Princess House	$195 million
73	Mannatech	$180 million
74	Charle	$173 million
75	BearCere' Ju	$170 million
76	Youngevity	$163 million
77	Seacret	$161 million
78	Kasley Ju	$154.4 million
78	Longrich	$154.4 million
80	Giffarine Skyline Unity	$154.0 million
81	Marketing Personal	$153 million
82	ARIIX	$151 million
83	World Global Network	$146 million
84	Naris Cosmetics	$144 million
85	FuXion Biotech	$135 million
86	New Image Group	$124 million
87	Ideality	$115 million
88	Golden Sun	$103 million
89	Zurvita	$100 million
90	Diana Co.	$98 million
91	Vestige Marketing	$97 million
92	Global Ventures Partners	$92.1 million
93	Koyo-Sha	$91.8 million
94	Total Life Changes	$88 million
95	Immunotec	$82.2 million
96	Jimon	$77 million
97	Nefful	$75 million
98	Captain Tortue	$71 million
99	Shinsei	$69.4 million
100	Vision International People Group	$69.0 million

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

What is network marketing?

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

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

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

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

What is network marketing: historical background

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

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

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

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

All complex things began with a banal approach.

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

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

Undoubtedly, Karl had a good goal.

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

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

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

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

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

And he hit the nail on the head!

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

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

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

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

The result of the work of Karl Rehnborg:

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

In 1934, Rehnborg renamed the company Nutrilite Products.

The operating principle remains the same.

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

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

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

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

What is modern network marketing: terms and definitions

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

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

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

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

Let's look at the main components.

The first stage of the pyramid: manufacturer – distributor

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

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

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

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

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

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

Second stage: second-order partners

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

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

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

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

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

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

Third stage: entry-level partners

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

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

An interim summary should be made:

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

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

Network marketing - is it that simple?

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

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

Positive aspects of network marketing

Lack of a linear management system.

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

Close-knit team.

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

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

Supervision is the basis of a network business.

Possibility of constant growth.

Another positive aspect of MLM.

Everything depends only on your abilities, including earnings.

Very significant experience in interacting with people.

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

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

Flexible schedule.

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

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

At least in the first stages of activity.

Negative aspects of network marketing

Possible destabilization of the network structure at any time.

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

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

Uncertain payment standards.

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

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

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

Opportunity to get into a financial pyramid.

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

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

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

The company is closing...

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

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

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

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

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

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

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

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

Network marketing: choosing an employer

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

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

Top 5 Russian MLM market

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

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

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

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

Network marketing evokes a subjective attitude in every reader.

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

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

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