Network marketing - what it is: a detailed description and essence of the work of MLM business + a list of MLM companies with high ratings

Hello, dear readers of the online financial magazine Rich Pro! The topic of today's article is network marketing (MLM): what it is, which MLM companies in Russia are highly rated, how the network business works, and so on.

After all, for many centuries the model of distribution of goods and services "manufacturer - large wholesale. - small wholesale. - retail - buyer"was the only one possible.

But at30s years XX centuries in the USA a system of distribution of products was born and subsequently developedmanufacturer - distributor - buyer".

At the same time, the activities of MLM companies have been fanned for many years with various rumors, comparisons with the financial pyramids and ambiguous public opinion. Based on this, for an objective look at this type of business, you should consider in more detail all aspects and nuances of network mlm marketing.

So, from this article you will learn:

• What is MLM - the history of the network business industry;
• The main advantages and disadvantages of network marketing;
• Which network companies are the most popular MLM businesses (ranking by sales in the world).

After reading this article, you will determine for yourself whether it is worth it to engage in multi-level network marketing, find out which companies are better to choose and why, read reviews of “experienced” mlm marketers.

What is network marketing and how does it work, what is the basis for cooperation with mlm business, which MLM companies have high ratings and much more, read below in the article

1. What is network marketing (MLM-business): the essence and objectives

Network marketing - a system for the sale of goods and services from producer to buyer, which is carried out through recommendations from person to person.

With this system of distribution of products to the retail price not laid wholesale distribution network costs. Also with this method of promoting goods are absent significant costs for advertising and product delivery.

The essence of the MLM business is in non-store retail, in which the distributor independently establishes contact, advertises and sells the goods to the potential buyer.

In addition to earnings from retail sales, a sales agent offers consumers, for a percentage of sales set by the company, find new buyerswhich, under similar conditions, “attract” regular customers. As a result, a multilevel network is formed.

Network Marketing Tasks

• Product Pricing Optimization. Before 70% The retail price of everyday goods is the cost of the distribution network and advertising. Changing the distribution structure reduces costs.
• Providing the buyer with quality, genuine products. In the traditional promotion of goods, there are obvious prerequisites for the appearance of fakes on the market, but they are absent in the direct selling method: the product is not as widely known as analogues from the traditional market, the manufacturer, distributor and buyer are not interested in the appearance of counterfeit products.
• Improved product delivery system. The manufacturer’s control over the logistics and storage of goods allows providing the consumer with a product with the proper quality and in the optimal time (What is logistics, read the article here).
• Improving the distribution of profits of the manufacturing company. Cost reduction allows you to direct financial resources to incentive programs for sales agents, various bonuses and incentives, as well as improve product quality.

Below we consider the principle of network marketing.

2. How the network business (marketing) works - the principle of work of MLM companies 🗺

Multilevel marketing is the interaction of the manufacturer, entrepreneur and buyer.

How multi-level network marketing works - 3 sides of profitable cooperation with MLM

2.1. Network Marketing by an MLM Company

MLM-company in its own factories produces products. She also develops a marketing and sales plan, based on which, revenue from product sales is distributed.

As a rule, a business plan motivates distributors in several areas:

• a) consume the products themselves;
• b) sell goods to customers;
• c) create a network of entrepreneurs.

Manufacturers organize the delivery of products to their own warehouses in different countries and cities, and also ensure that distributors receive the goods at home.

For proper efficiency, entrepreneurs receive all the necessary materials on products, master classes, seminars aimed at developing a variety of skills are held.

2.2. Consumer Network Marketing

A distinctive feature of the direct selling method is the creation of convenient conditions for the buyer:

• Delivery. Entrepreneurs, as a rule, bring goods to their homes.
• Service. Before buying, the buyer receives all the necessary information about the product. Also during operation there is the opportunity to consult with a distributor.
• Quality assurance. Most MLM companies guarantee product quality, with the possibility of a full refund in case of customer dissatisfaction.

2.3. Entrepreneurial network marketing

Multilevel marketing - A very attractive type of activity for people who do not have a large initial capital and business experience.

An entrepreneur has the opportunity to independently plan his employment based on his abilities. Great employment with this type of business is observed among students, housewives and pensioners.

Some terms and definitions used in the network marketing business:

Distributor- a sales agent having an agreement with a direct sales company and receiving remuneration for the sale of products, as well as the percentage of commission for the turnover of the network created by this entrepreneur.

Sponsor (partner) Level 1 - a sales agent who familiarized the consumer with the capabilities of this business and helped to conclude an agreement with a network marketing company.

Sponsorship (affiliate) line - a list of entrepreneurs directly interested in the success of the distributor, which includes a level 1 partner, his sponsor, etc.

Side entrepreneurs - a set of distributors who do not belong to either the sales agent’s subnet or the sponsorship line.

Bottom line partners - a list of agents included in the distributor network.

Organization Width - set of partners of the 1st bottom line.

Depth of organization - all agents of the 2nd and subsequent lower lines in the distributor’s subnet.

Active Income - monetary reward for the work performed by a person. Income depends only on the quantity and quality of labor invested.

Passive income - Profit earned by the businessman constantly, for a one-time job. To obtain this income, a prerequisite is the presence of assets, which may be real estate, bank deposits, stocks, etc.

In network marketing, passive income can be brought by actively developing subnet partners of the bottom lines of the distributor.

During the period of development of network marketing companies, numerous schools have been formed in their distribution networks that promote a variety of methods and ways to achieve goals.

Often, philosophy and values ​​vary widely. To achieve success in business, ideologists of multi-level marketing advise to seek advice only from sponsor line entrepreneurs.

What is an MLM Business Marketing Plan

3. Marketing plans of MLM companies - what is it and what to pay attention to

Marketing plan - a set of methods for calculating premiums for sales agents due for achieving certain performance results. These plans determine the opportunities and conditions for making money, bonuses and bonuses from a network company.

Therefore, before starting cooperation with an MLM company, you should pay attention to its marketing plan and some of its aspects:

• a) Potential growth of structure and income

In MLM, revenue depends on the structure of the network, namely, "width"and"depths"organizations. Development"width"should allow the distributor’s income to grow rapidly, and"depths"- stabilize income at an appropriate level.

You should also pay attention to the fairness of the distribution of funds. For most network companies, the marketing plan is objective and allows the agent to earn more than the less active entrepreneurs of the top sponsorship line.

• b) Form of payment

Marketing plans for network companies have a gradation of achievement levels. Income is determined, as a rule, as a percentage of turnover. The first step may be 3%and at the last - 25%. Reaching the last percentage level allows the entrepreneur to separate his structure from the business of the sponsor, who then receives a certain percentage of passive income from the turnover of this subnet.

It should evaluate the degree of premium distributor for "educating" business leaders in the depths.

• at) Qualification requirement

Some organizations have certain restrictions. As a rule, they are associated with obligations to purchase goods. The higher the level of business, the more they require the entrepreneur to buy.

In such organizations, greenhouse conditions are created for beginners, and sales agents who have achieved significant results are burdened with restrictions and inconveniences. Before formalizing cooperation with MLM - the company, you should make sure that in the marketing plan no sanctions for the lack of mandatory personal turnover.

• d) Availability and simplicity

A sales marketing plan should be easy to understand, and the distributor should have no difficulty presenting it. The client should be able to independently analyze and calculate their potential income, depending on the structure option.

Types of Network Marketing - The Main Pros and Cons

4. Types of network marketing - advantages and disadvantages ➕➖

In practice, network marketing companies use 3 main types of premium plan:

• multi-stage with compartment;
• "matrix";
• single level plan.

Each of these marketing plans has its own characteristics, advantages and disadvantages. Let us consider each of them in more detail.

Type 1. Multistage plan with separation

The essence of this plan is to achieve levels (steps) in the process of business development. At each stage, the entrepreneur receives more and more income, while in many network companies, the sales agent is rewarded with an increasing discount on the purchased goods.

In the same way, partners of the lower lines of the distributor are stimulated, who, having reached the top of the premium table, are "separated" from the entrepreneur.

Further, the turnover of this subnet is not taken into account in the general sales of the sales agent, but at the same time, a constant premium from the turnover of its structure is charged to it. As a rule, this bonus is greater if the organization is separated in "width"and less significant in"depth".

A marketing plan encourages successful entrepreneurs to be proactive and help organizations “separate” from it develop.

Advantages:

• Unlimited income. The initial model enables the entrepreneur unlimited opportunities for generating income.
• The lack of restrictions in the construction of width and depth. It enables active distributors to develop a stable, financial business, and for beginners to learn from successful sales agents.
• Sustainability of MLM businesses - companies and their sales agents. With the balanced development of structures in the "width" and "depth" of the entrepreneur provides income stability for himself and his network organization.

Disadvantages:

• Difficulty perception. Such business plans are sometimes difficult to understand.
• Separation of successful organizations from the distributor. A constant premium from a separate structure does not always fully compensate for its absence.
• Significant results are achieved only by motivated entrepreneurs.

Type 2. Plan "matrix"

A distinctive feature of the marketing plan is a significant limitation of the income from the structure matrix 3 × 7, 5 × 7 or any other.

For example matrix plan 5 × 7 means that the entrepreneur earns only from the subnet "widthfive partners anddepth"at seven levels. When going beyond this, sales of these sales agents are not taken into account in the distributor’s turnover. This leads to the fact that entrepreneurs go to various frauds.

For example, registration in the first line is limited and then beginners register "for partners in depth".

Advantages:

• Simplicity of perception. It’s easy to internalize and present your business plan to potential sales agents.
• Controlling the development of the structure. Limiting the number of people in the subnet allows the entrepreneur to maintain contact with all partners.
• Easy success. Moving new sales agents by structure allows many distributors to make quick and easy money without making any effort.

Disadvantages:

• Excessive simplicity stimulating fraud. The business plan itself pushes entrepreneurs to various tricks.
• Lack of incentives for new distributors to work actively.The artificial construction of a structure for new sales agents does not motivate them to work independently.
• Maximum resemblance to financial pyramids. In connection with the above frauds, a comparison with the pyramids is very appropriate.
• Short life. As a rule, companies with a business plan "matrix" exist in the market from one to three years.

Type 3. Sibling plan

Title "single-level"does not fully reflect the characteristics of the marketing plan.

The definition of "one level" implies that the bottom line of sponsorship is built on the principle of "one level below another."

This model can be characterized as follows: "multi-stage plan without separation". As in the above types of business plan, there are restrictions in it, the main one is the lack of premiums from a certain level of" depth. "

Advantages:

• Simplicity of perception. The plan is easily presented and understood by the candidates.
• Unlimited "width". The absence of a limit on the construction of the "width" allows the distributor to build many structures in the network.
• Lack of "separation" of organizations from the general network of the entrepreneur.

Disadvantages:

• The lack of premiums for the "depth". The sixth or seventh level of "depth" and below, depending on the business plan, is not taken into account in the total distribution network of the distributor.
• Limit affiliate program. Successful entrepreneurs have no incentive to help newcomers from the bottom lines.
• The flaws in the business plan attract less focused sales agents.

5. History of the development of the MLM business industry 📚

The network marketing industry originates since 1934 in the USAwhen the manufacturer of vitamins and dietary supplements "Nutrilite"K. Renborg decided to sell his products through sales agents.

By the 40th year, the company began to increase its sales through the development of a network of distributors. At that time, direct sales were well known and widespread, but Renborg improved this model. Entrepreneurs, in addition to selling the goods of this company, involved other agents in the work.

The main activity was the creation of a network of distributors, their training, motivation and assistance in expanding the organization. This work brought them income - percentage of the turnover of the constructed network. The share was insignificant, but with a certain activity one could make good money.

In the end 50s of XX century entrepreneurs Rich de vos and Jay Van Andel set up a companyAmway"which is currently the oldest network marketing organization.

In the process of activity and development, the company met with misunderstanding and rejection by competitors with a traditional form of distribution.

MLM began to be called financial pyramids, which are banned in America by law. US Federal Trade Commission Sues CompanyAmway". The process lasted four years, and, according to the Commission’s decision, the company is not a pyramid scheme, and the applicable form of sale of goods does not contradict the laws of the United States of America. This decision, along with the emergence and development of the Internet, gave a huge impetus to the development of the industry.

At the beginning of the new millennium there is a tendency for direct selling companies to cooperate with large "traditional" manufacturerswho began to realize the potential of cooperation with organizations that have networks of thousands of loyal customers.

At the same time, MLM companies that previously could offer consumers only a narrow range of products now have the opportunity to increase it through cooperation with the classic business.

Network marketing - a pyramid or not: the main differences and principles of marketing

6. Why is network marketing associated with the financial pyramid?

Throughout the history of the development of multi-level marketing, it has been associated with pyramids and other illegal activities. This is because it is difficult for the average layman to understand the marketing plan of an MLM company and the network structure of the business reminds him of a financial pyramid.

An in-depth examination of this issue reveals that direct sales enterprises have only indirect common features with illegal pyramids, and fundamentally - vary significantly.

In order to deal with this issue, you should consider the difference in the principles of work of organizations. classic and network marketing.

6.1. The principle of classic marketing

In the traditional way of promoting goods and services from producer to consumer, classical marketing methods are used: advertising, distribution network (a variety of wholesale intermediaries), the final destination of which is retail stores.

All legal entities involved in the promotion of goods to the buyer, make some commercial effort, increasing the retail value of products.

6.2. Network Marketing Principle

When promoting goods on the principle of direct sales, the manufacturer interacts with regular customers (distributors), who in turn ensure the sale of products.

Lack of wholesale intermediaries, significant advertising and transportation costs allows the MLM company to set the retail price with a significant margin.

The company distributes the profit received between the agents based on their contribution to the turnover. This is the main difference from the pyramid schemes, where participants earn money based on the number of people involved.

Associations with illegal organizations also arise because participating in the direct selling business is possible only on the recommendation of an agent who already works with MLM - the company.

7. Network marketing on the Internet without attachments - true or false?

The Internet has changed the whole business, including multi-level marketing. The emergence of all kinds of thematic sites, of programs for communication allows sales agents to communicate with potential customers and partners using a telephone or computer.

Most MLM companies have online stores, which allows you to draw up agreements with new distributors online, despite the fact that partners can be at a considerable distance from each other.

The main ways to attract customers to the MLM business

Ways to attract customers to your MLM business - 6 proven ways

In order to make good money in the direct selling business, it is necessary to attract new entrepreneurs to cooperation.

There are a number of ways to find partners in MLM - business:

Method 1. Search for partners among the personal environment

A person in the process of life communicates with a large number of people, and when building a direct sales business, a distributor should turn to this category of potential partners.

Method 2. Recommendations

Some friends and acquaintances will not want to engage in this type of business, in which case they should ask for recommendations from their environment.

Method 3. Communication

Any entrepreneur from MLM business has a moment when the possibilities of expanding his network with the help of his personal environment are exhausted. The solution in this case is acquaintance and communication with new people.

Method 4. Social networks

With the development of the Internet, this method has become very popular. The advantage of social networks - the ability to evaluate a potential partner in terms of his worldview, motivation and aspirations.

This, in turn, allows the distributor to save time on people who do not want to do their own business.

Method 5. Various forums

There are many forums on the World Wide Web about financial and personal growth, and accordingly, it is likely to find partners.

Method 6. Create your own website

It can be a serious tool when developing a direct selling business. However, you should worry about the quality content of the site, set up contextual advertising and use modern methods of promotion.

How to create your own website, we already wrote in our last issue.

Each of these methods is good in its own way. We recommend that you use all possible methods of attracting customers, as the principle "The more customers you attract, the more goods you can sell," applies.

You can also read an article about other types of work on the Internet at home.

8. Advantages and disadvantages of network marketing - an overview of the main disadvantages and advantages of MLM business

MLM - business has a number of advantages and disadvantages. Evaluation of this type of activity in the media among authoritative businessmen, politicians vary greatly.

The advantages of MLM - business and its advantages

Consider the main ones:

1. Low barrier to market entry. When opening any business, an entrepreneur evaluates the resources that he needs to start on the market. In a business using the direct sales method, insignificant funds are needed to start a business. There are also no rental costs for premises, warehouses and other fixed costs.
2. The ability to do business on the Internet. Since the end of the twentieth century, more and more consumers, manufacturers, and businessmen have made purchase and sale transactions on the World Wide Web. Doing business online is an undeniable advantage of business.
3. Product quality. Due to the peculiarities of MLM marketing plans, companies are able to allocate large sums for the production of quality products in comparison with competitors that use traditional marketing to promote goods.
4. Educational programs. To develop the skills of sales agents, direct selling companies introduce training programs that include books, CDs, seminars, and various trainings and presentations. This information allows you to develop not only in sales, but also contributes to personal growth, improving family relationships, etc.
5. Part-time employment. The opportunity to work in your free time and at the same time have income from your main activity.
6. affiliate program. Sponsorship (partnership) line is interested in the success of the distributor. More experienced partners strongly support, help and advise newcomers. Relations are built on equal terms, regardless of income.

As you can see, significant advantages are presented for the sake of which this business should be started. We also offer to read the article - "Ideas for business with minimal investment," perhaps you will find useful information there.

Cons and Cons of Network Marketing

Consider now the main disadvantages:

1. Reputation. Due to the lack of restrictions and the selection of agents, sometimes new entrepreneurs incompetently conduct business: they impose products and the business itself, give false information and in this way compromise this type of activity.
2. High probability of worsening relationships with friends and family. Most of the population prefers self-employed. In the case of doing business without an office, warehouse and employees, friends and relatives treat this matter negatively.
3. Slow business growth or lack thereof. As a rule, the entrepreneur receives the first significant results in the period from six months to two years, subject to systematic work and training. A very large number of distributors did not succeed in this business.
4. The vast majority of cooperation offers are rejected. With active participation in building a business 80- 95% of the work does not bring results.
5. Significant success is achieved by only a few entrepreneurs. On the way to success, a sales agent encounters a lot of difficulties, overcoming of which requires perseverance, education and work on oneself. Not everyone is ready to overcome all possible obstacles.

Above, we presented the main disadvantages and disadvantages of working with MLM companies.

9. Rating of network companies in Russia - a list of the most popular MLM companies

The first mentions of network marketing in Russia are dated 90 years of the twentieth century and are associated with the companyHerbalife". The company's products were rapidly spreading throughout the country. Tempted by the opportunities of a new business, thousands of people decided to cooperate with this organization. Expecting fast success, many distributors endured collapse, writing off the fact that the activities of this company is illegal.

At the same time, many financial pyramids have appeared in our country that have an external resemblance to MLM companies. All this affected the reputation of this type of activity.

Despite these factors, the direct sales business in Russia has developed significantly in the following decades.

By the beginning of the new millennium, all the global leaders in network marketing are present in the Russian market.

In this table you can consider the most popular network companies in Russia.

The table shows that the world leader in this industry, the company "Amway"in Russia it occupies only the third place in terms of sales.

The largest market share is held by corporations "Avon"and"Oriflame".

Is it possible to earn in MLM what you need to earn in network marketing

10. Is it easy to make money in network marketing, and what is needed for this

Due to its merits, network marketing is a fairly popular activity.

According to the Russian Direct Selling Association for the last five years6% The population was engaged in business based on multi-level marketing.

Distributors significantly differ in earnings, which do not depend on the level of education, profession, number of children, marital status and other factors.

A small percentage of sales agents quickly and easily achieve results. This is due to the fact that success requires knowledge and experience.

To achieve significant business results, the following tips should be followed:

Tip 1. Have a dream, a goal

A dream is the main factor that allows an entrepreneur to overcome difficulties and achieve success. To maintain motivation, you should "break the path to a dream" into intermediate goals.

Tip 2. Be responsible

A sales agent must realize that the result of his activities depends only on his efforts and dedication.

Tip 3. Learn and grow

Most network marketing companies have training programs. They include business literature, CDs with recordings of speeches by business leaders, and training seminars are periodically organized.

Tip 4. Keep a list of friends

For effective activities, write a list of acquaintances in a notebook and periodically replenish it.

Tip 5. Present business and product

Based on the list, you should "get in touch" with potential partners or customers. The final result is affected by the number of presentations.

Tip 6. Consult a sponsorship line

It is better to learn from the mistakes of others. Top line partners have more experience and are always ready to help the distributor, as they are personally interested in the success of the entrepreneur.

Tip 7. Build a business based on the developed strategy

A stable, long-term result can be achieved only if the balanced development of the "width" and "depth" of the structure is achieved.

Tip 8. Repeat the steps and success methods used by higher partners.

It is also worth noting that the partners of the lower lines also observe the distributor, and will repeat his actions.

11. FAQ - answers to frequently asked questions

Before dealing with multi-level marketing, potential distributors have a number of doubts and questions.

Question number 1. Should a beginner start?

It is worth it, but one should not expect quick success. No risk of "being in the red", small initial investments, high-quality educational programs, partner assistance - factors that can influence success.

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

Starting cooperation with a "network" company, sales agents strive to earn money as quickly as possible. Activities should begin with simple retail sales.

Buying a product at a wholesale price, and selling at a retail price - distributor makes money. First of all, products should be offered. friends, relatives and acquaintances, since they will be more loyal to an inexperienced seller, and in the future they will be able to become regular customers or partners in the business.

Question number 3. Network Marketing: Is It Legal?

Direct selling business is a legal activity, which is confirmed by the fact of the existence and development of these companies for decades.

Many illegal structures disguise their activities under the guise of network marketing companies.

Important! Potential customer is invited to make an initial fee, pay for mandatory training and purchase a minimum batch of goods. This is accompanied by the absence of checks and invoices confirming the purchase of products or the provision of services.

Also the consumer should alert the poor quality of the goods or lack thereof.

Network companies offer good quality products and do not require significant financial investments to open their own business.

Question number 4. What are the reviews of network marketing - can you really make money on it?

There are many diverse reviews of network marketing on the Internet.

Here are some of them:

Review 1. "At the beginning 2000s a colleague at work suggested trying the company's productsOriflame". I really liked the product, and I became regular customers. After a couple of months, she invited me to become her business partner and told how to make money.

At the first stage, I managed to have a fairly large income, but then everything changed. I am raising one with two children, and with the growth of my network (at that time I had 34 people in my team) it was increasingly difficult for me to combine household chores and business.

As a result, revenues began to decrease, and at some point 12 people "left" my network. Later, I decided to switch to a classic business. In order to have great success in this direction, a lot ambition, determination and activity. One girl from my structure has made great strides in "Oriflame". I do not regret anything, the knowledge and experience gained at that time, now allow me to successfully do my job.

Olga, Samara"

Review 2."In the second year of university, our stream" swept the virus "of network marketing. Earning opportunities from"Faberlic"fellow students discussed everywhere. I have never been a fan of sales, but still decided to try.

Over time, I realized that it’s hard to make money in this business, the main part of the income from your turnover is received by higher partners. To succeed, you must be able to impose products.

I do not advise anyone to engage in network marketing.

Alina, Rostov"

Review 3." AT 2009 I had to close my own business, and in the end I owed it to the banks 40 000 dollars, of which 2 000 you had to pay every month. I urgently needed to get out of this situation. I was in search of a solution, considered various options for earning.

Suddenly, an old friend whom I had not seen for many years turned to me with an offer to do business in cooperation with the company "Amway". At the presentation, he told me about the possibility of decent earnings in a year or two. But I needed money as quickly as possible, which was suggested to focus on personal sales of expensive products that have a significant margin. So I started in the business with filter sales for water and dishes.

I have enough wealthy friends and, to get out of my situation, I had to actively promote the products. For the first year in network marketing, I held 2-3 meetings with clients on weekdays, and 6-7 meetings on weekends. The result was not long in coming - I paid off my debts and without actively “attracting” partners I reached 9 - 12 % levels of achievement.

Further, I studied the company's marketing plan in more detail and began to more actively develop my own network of distributors. At the moment I am at the level of Platinum Independent Entrepreneur.

I agree that making money in this business is not easy, but if you have motivation, then everything is possible.

Andrew, Peter"

Question number 5. How to distinguish network marketing (MLM business) from the financial pyramid?

Most financial pyramids operate under the guise of direct selling companies.

The table shows the comparative characteristics of these organizations.

Question number 6. How to choose an MLM company to start?

Newcomers who consider the direct selling business to be an appropriate activity are faced with the question of choosing an organization for cooperation.

For an optimal solution, a number of aspects should be taken into account:

• Reputation and age of the company. It is better to make a choice in favor of an organization with a good reputation and significant experience in this field.
• Products The basis of any trade is a product. Its quality will directly affect the result. It is also worth paying attention to the features of the product. It is important that after some time it ends, and clients turn to the sales agent again. Variety of assortment is also an essential factor in choosing a company.
• Tutorial. The education system has a significant impact on business success.
• The presence of a company’s business on the Internet. Out of network significantly reduces opportunities for business growth.
• Business plan. It is important to evaluate the company's marketing and sales plan by the criterion of fairness of the organization’s profit distribution. You should also check for restrictions. The best kind of business plan is "multi-stage plan with separation".

Question number 7. I want to try network marketing in "Oriflame", "Faberlic", "Amway" - what is needed for this?

In order to become a distributor of direct sales companies, it is necessary to draw up a cooperation agreement with this organization, the age of the applicant must be not less than 18 years.

To register a contract, it is necessary that the newcomer has a sponsor who will help to draw up documents.

12. Conclusion + video on the topic

In recent decades, various methods of promoting products have been developing rapidly in Russia, one of which is network marketing. Despite the mixed reputation, this method of trading has become convenient and popular among buyers.

Possessing thorough information about what constitutes direct sales business, the consumer can make the best decision about its use - to access high-quality goods that are not available in retail stores, receive additional income or develop their own network business with the prospect of significant income.

In conclusion, we also offer to watch an interesting video about business on the Internet:

Dear readers of the Rich Pro website, if you have any comments on this material or would like to share your experience of working with an MLM company, leave them in the comments below. Good luck and big sales!

Watch the video: How to spot a pyramid scheme - Stacie Bosley (April 2024).