Instructions

Before starting an online business, you need to choose a company wisely so as not to fall into a pyramid. The basic rule of network business is the presence of a product or service offered; in pyramids, as a rule, there is no such product, and people pay for “air” without any confirmation.

On this moment a significant part of network companies offer biologically as a product active additives, cosmetics or household chemicals, or all these products together. There are companies that offer services instead of goods. The bulk of such organizations develop due to internal consumption, which is ensured not only by the right motivation but also by psychological pressure.

To choose a company, you need a unique product or service, a transparent marketing plan (this is a system for rewarding distributors), a training system, leaders, and the opportunity to receive passive income. It would also be nice to know the company’s growth dynamics and sales volumes.

In order to start making good money in a network business, you need to work a lot, and at first there may be little return, but in the future it will pay off. You should also remember that this is not a job for hire, this is working for yourself, here you are your own boss, you don’t owe anything to anyone except yourself. You will need a lot of self-discipline.

When you first join a company, you need to invest a lot of time, effort and money in training. This system of doing business is unfamiliar to most people; it needs to be learned. Just like in institutes, people study to obtain a profession.

In any network company, sales of goods or services are necessary; this creates the company’s turnover, due to which distributors receive large rewards. This skill also needs to be developed. At first, sales will help you earn quick income.

And the most important thing is building a network of distributors. The main income depends on the growth of the network, which will grow in direct proportion to the increase in the number of invited people. Invitations alone are not enough; you need to teach your people the same things you learned yourself, so that they begin to duplicate your actions. Success largely depends on this.

Important feature network marketing is the fact that, depending on the marketing plan, upon reaching a certain level, the distributor receives the opportunity for passive income. At this stage, you can retire and just enjoy life, since you have worked hard enough in your time.

Starting from the very first steps in the network business and throughout your entire journey in it, you will grow personally. This is a completely different form of work, or rather business, and in order to cope with all the assigned tasks and achieve the desired results, it is necessary to change, submitting to the ideology of the network structure.

note

Still, working in a network business means not just working for yourself, but also for the person whose referral you are, plus those people who are higher in the pyramidal hierarchy.

Network marketing is a direct sales method in which the movement of goods is carried out along the “manufacturer-seller-buyer” chain. Intermediaries and markups are eliminated as much as possible. The “network” of human employees is built on the principle of a pyramid, and many believe that newcomers to this business a priori cannot earn a decent living. This is not true - the best of the best in this business are highly paid, regardless of their place in the hierarchy.

Instructions

Do not underestimate or skip the trainings and classes that the company organizes. The earning scheme may seem simple to you and does not require additional explanation, but this is far from the case. At the meetings, they will tell you about the current state of the market, show you a sales schedule, introduce you to successful colleagues and tell you about partner companies. A successful network marketing salesperson must always be aware of current news companies.

Try to attract as many people as possible to your business. How more people will be interested in such earnings and follow in your footsteps, the more bonuses and cash you will receive and the sooner you will move to the next level.

Look up to those who have achieved success. Positive motivation – The best way reach heights. Don’t give up after the first failures, don’t look at your less successful colleagues - if they retreated without achieving their goal, this does not mean that failures await you too. Perhaps they simply lacked the willpower or leadership qualities or they don't believe in own strength and the prospects of such a business. Belief in success and strict adherence to the accepted work plan will help you become the best.

There is a type of direct promotion of goods and services to the market - multi-level (network) marketing or, in other words, person-to-person marketing. The essence of this type of marketing is that the manufacturing company recruits an army of independent distributors who distribute the product, recommending it to friends, relatives and acquaintances. How realistic is it to earn anything in this type of business?

Instructions

Select the network company you will be with. You may need to spend some time familiarizing yourself with the products and compensation plans of companies, of which there are many on the domestic market today.

Pay attention to the product distributed by the companies (goods or services). The product must be exclusive (unique), high-quality, in demand and located in the middle price category.

Review the company's marketing plan, also called a compensation plan. Ask the person who invited you to the business to explain to you in detail the specifics of payments for the work done.

Read the conditions under which you can become a distributor of the company. As a rule, the company offers the minimum requirements: conclude a contract and purchase an inexpensive starter kit with the documentation necessary to build your business. From this moment on, you are entitled to a discount when purchasing company products. In fact, this is a type of remuneration, since the distributor has the opportunity to buy the product at a wholesale price, which is sometimes 30-50% lower than the price for a regular consumer.

Before you go big, be sure to get trained in direct selling and network building skills. In most companies training

Make money online

People look for ways to obtain additional or main income every day, looking at vacancies or ways to earn money in various sources. has become popular and therefore allows you to solve the issue of income if the right steps are taken at the start. In the article we will consider important points who will tell you how to make money in network marketing and not fall into the “pyramid trap”.

Learn to differentiate

The concept " network marketing“causes various associations in people, because in order to make a profit, a person becomes an agent and must interest clients who can not only buy, but also earn money themselves. Gradually, a network is formed that connects each level of involved agents. The more there are, the higher the income, especially for the curator of the branch.

The network marketing scenario is similar to building, which usually affects the trust of a potential client. In order not to be deceived in your desire to make money, you need to pay attention to the following points:

1. Network marketing is based on the sale of a specific product or service that is offered according to the manufacturer’s catalog. There is no need to purchase products in advance. Only what customers order is sold. The goods are paid for on the day of receipt at the warehouse.
2. A financial pyramid usually requires paying membership fees or buying “securities,” although outside of this organization they will become ordinary candy wrappers. Benefits can be obtained not from selling goods, but by bringing new people who pay a membership fee.
3. There is another type of online earnings that can also be questioned - selling software or other equipment. To get started, you need to pay for a package of services that will allow you to occupy a certain place in the sales chain. This could be a personal account, a plastic card or other work tools, the use of which requires a subscription fee.

An example of the latter type of MLM business is the Talk Fusion company - it attracts both buyers of its tools and sales agents for the service. To earn money, you must first pay and bring two or more new agents so that the chain begins to generate income. But even those agents must develop their line. It's more like a pyramid, there is only a product that can be sold. The qualities of a leader, speaker and psychologist are needed. But it’s unlikely to be possible to quickly rise from the initial stage to “gold” or “platinum,” as representatives promise.

Having considered three options for network marketing, we conclude that in order to successfully make money in the MLM business, it is necessary to study the terms of cooperation. Choosing a company with which you can earn money is the main step for successful promotion.

Assessing the prospects

From the list of network business representatives, you need to choose a direction that will allow you to achieve success. It’s safer to start with a well-known brand. There is no need to make an effort to convince clients. This applies to manufacturers of cosmetics (Oriflame, Artistry, Faberlic) or household goods (Amway). Buyers have already appreciated the products and will buy them without fear.

Niche only famous brands already occupied by other distributors. Competition requires a special strategy in order to develop a client base and form your own line of passive income, taking into account the congestion of the segment. It’s easier to make money in a network business with a new offer that has the trust of consumers, but is in short supply on the market - new dietary supplements, electrical appliances for health and home, training courses, life and property insurance. The choice of direction depends on personal interest and the ability to earn money from it.

Pay attention to the assistance that representatives of the network company provide to students. Visual aids, video tutorials, meetings, and training are usually provided free of charge to improve agent performance. Some curators help in attracting first clients.

The scheme for accruing bonuses and cash is important, because earnings are the main motivation for a person in network marketing. For example, in the cosmetics MLM direction, the distributor receives income from the markup. The coefficient varies, but on average it is about 30% of the total amount. The supplier sets a wholesale price, the client receives the products at the price in the catalog, the difference ends up in the middleman’s pocket. In addition, points are awarded for the implementation of the plan, if one is provided, and for the work of other links in the branch.

If the scheme is transparent, there are no penalties or excessive plans, then it is possible to succeed in the chosen type of network marketing.

Action plan

Having gone through the stage of choosing an area where there is an opportunity to earn money, you need to draw up a business plan and understand what to pay attention to:

Training is necessary at any stage. The more information there is about the product, the easier it is to convince people by telling them about the benefits that are significant to them. Persuasiveness depends on the knowledge base. The experience of mentors will also help, who will tell you how to make a profit as quickly as possible and attract agents for passive income.

We choose the way to receive money - with or the passive option. Some distributors tend to start with personal selling, studying demand and finding a customer base. But network business gurus advise starting with two positions at once, because among clients there are people who want to receive an increase in their basic income or ensure that they purchase products at the purchase price. Large and medium-sized networkers note that most of their earnings come from the work of their subordinates, and not from direct sales. After some time, you can completely abandon the distribution of a product or service if there is a multi-level structure of agents.

Find ways to attract. There are different methods of successful sales:

1. Direct contact with people if you have time to visit public places or there is a large circle of acquaintances and relatives who are not involved in the MLM business by other curators. It takes a lot of time and is not always effective. This option is relevant when the customer base has already been formed, when only delivery of products and catalogs is required.
2. Attracting the target audience through social networks or creating a website or online store, if the manufacturer has not developed such a direction. Wider reach of potential clients. It takes less time. Users interested in products or opportunities to earn money respond.
3. Distribution of offers to email and ad sites, creation of landing pages and contextual advertising.
4. Promotion through is becoming popular due to its coverage of various settlements and the ability to build a network not only in your city, but also outside of Russia. Especially if the company has a wholesale warehouse or can actually receive the goods as soon as possible. For example, in rural areas you can find clients through social networks, accepting applications in in electronic format and sending the goods by mail. We will arrange payment through the online payment system.

It is possible to increase your earnings several times at the initial stage if you choose two or three MLM partners. For example, it is profitable to distribute several brands of cosmetics and body and face care products. Prices from competing manufacturers differ, which allows people of different incomes to choose the right product.

Again, making a comparison between the cosmetic brands Avon and Faberlic, which have serious differences in the price list for the same type of product, the more offers, the faster orders will appear and a network will be built.

Know yourself

Not everyone can become successful in network marketing. If a friend or relative is delighted with the MLM business and does not want to sit for eight hours in the office or in production, this does not mean that everything is so simple. High-income networkers have the following qualities:

If the listed qualities are inherent in you, then you can be sure that you will be able to make money in network marketing.

Sometimes people test themselves in practice by spending one day with distributors of something.

Let's give an example

There is a company in the city that sells literature of various profiles. When inviting agents to work, representatives promise a reward of 500 rubles, subject to daily revenue of 10,000 rubles. This is the minimum plan. The price of products varies, from 150 to 1000 rubles per copy.

The applicant is given books and assigned a mentor for the first day of work. Specifics of work during a visit various places where there are people ( shopping centers, hospitals, schools, kindergartens, offices, institutions). So the work has begun. We visited several places, but the result was zero. Basically, refusals and dissatisfaction follow from the people who were disturbed. Even the goal of demonstrating the product has not been achieved.

Two hours later, potential clients were found who agreed to look at the list of books. I was interested in children's fairy tales worth 250 rubles.

The route continues. The result may be different, but the main thing is your resilience and desire to move on, try to sell something that the interlocutor was not aiming to spend the budget on in the near future.

If at the first refusal you want to go home, then you should think about your chances of making money in network marketing. This example clearly paints a picture of what a young distributor has to do.

Let's sum it up

Network marketing is rapidly gaining momentum. The initiators of selling goods without intermediaries, who make a large markup, are manufacturers (MLM companies). They provide the opportunity for consumers to receive goods at an affordable price, and for distributors to receive a reward for promoting the brand. Earn substantial capital for short term, of course, not entirely realistic, but feasible for a person who has all the makings of a successful networker. The most difficult and important thing is to choose the right niche and invest every effort in development. The level of income depends only on your performance and motivation.

Mine were: 1. a company familiar to me, 2. has been on the market for many years, 3. a product that I like (note that the company must have a consumable product, and not “jars of Altai air”, “ processed cheese made from fish milk", "cloths for wiping the monitor made from eyelashes bat"and so on), 4. the presence of the “no sales” option, 5. since I am a mathematician and economist, it was important for me to immediately understand the marketing plan (I must know how much, when, and for what they will pay). And it just so happened that the first thing I found met all my requirements. I know very well that on the forum there are those who 1. “tried it, but it didn’t work out,” 2. “I’m there, but there’s no money,” 3. “my neighbor/girlfriend/some kind of aunt was there, they said it was bad.” fed" 4. etc. etc. I know all this very well, I went through it all myself. There was a desire to quit and go to hired work for my “big salary” BUT! I was stopped and cheered up by the fact that I like to go back to bed in the morning after getting up early and putting porridge for my daughter to cook (in a slow cooker!). This is problematic with hired work. It’s very easy with the network one. I don’t deny that I personally made a mistake with the mentor; I should have initially looked at information about him and found out more without registering. Well, okay, what's done is done. I learned a lesson, I made conclusions))))) In general, if you are ready to consider the option of cooperation with a network company, you are ready to work hard and get a good income (whatever you do, you get it 😉) write. I’ll tell you, teach you, and show you results. My telegram @OlgaAlieva P.S. Dear people with a negative outlook on life: you don’t have to write to me, I’m immune to you. Just become kinder to yourself, first of all, and the world will become kinder to you :)

Every day, thousands of people around the world are trying to discover ways for themselves that could provide them with the opportunity to obtain a basic or To do this, they have to look at the vacancies that have appeared on the labor market or study certain ways of earning money.

Network marketing allows every person to help solve the problems of generating income. Reviews from professionals in this business clearly indicate that success can only be achieved if the right steps are taken at the start of a career in MLM.

It is quite difficult to explain in a nutshell what network marketing is. Some people, having encountered such companies, call the earning schemes they created a real “scam”. But there is also an opinion opposite to this. According to him, network marketing receives reviews as the only opportunity to open your own business without initially investing large sums of money in its development. So which of these two opinions is correct? In order to understand this, you need to understand the question “Network marketing - what is it and how does it work?”

Only after collecting detailed information about the MLM system will each person be able to come to certain conclusions and decide for themselves whether it is worth working in this area, or leaving it for others.

What is MLM?

This abbreviation stands for: MultiLevel Marketing. And this means nothing more than “multi-level marketing”. This is also a direct sales system.

Network marketing (MLM) is a special way of promoting a particular product with the help of a whole network of people who receive a certain percentage of sales or a reward for attracting newcomers to the company. A person simply tells his acquaintances and friends about the product, and they, in turn, distribute similar information further. As a result, a kind of network is formed that facilitates the rapid sale of goods. This is the essence of network marketing.

Inviting people to the company is very profitable. After all, for each new customer a person receives a certain percentage of the profit received. However, expanding the network of buyers is far from simple. Often, for this purpose, network marketing uses a wide variety of psychological techniques. Not everyone likes this. That is why, before inviting a new person to the company, network marketing professionals must explain to him the essence of such a product distribution technology and explain the advantages that this work has.

A little history

The first company operating on the MLM principle appeared back in 1927. It was then that the creator of food additives, K. Rehnborg, began multi-level sales, in which he achieved good success.

Initially, K. Rehnborg was engaged in ordinary trade. However, a moment soon came when the demand for products became significantly higher than his capabilities. And then K. Rehnborg came up with a great idea. He began to attract acquaintances and friends to distribute the product he created, offering them an appropriate reward.

Somewhat later, people from this company, which was called Nutrilite Products, Lee S. Mitenger and William S. Casselbury, developed the basic principles of such sales. Soon MLM gained popularity all over the world. By the end of the 50s of the last century, on the basis of the company that marked the beginning of a new type of product distribution, the now widely known commercial network Amway.

But the MLM scheme and companies working in this field gained particular popularity in the 80-90s of the 20th century. And today they offer a very extensive range of products, which includes almost everything, from vitamin supplements to dishes, cosmetics and household appliances. Which companies have chosen network marketing for themselves? "Oriflame" and "Avon", "Faberlic" and "Zepter", as well as many others. According to experts, some of these companies have an annual turnover of products offered on the market reaching about 200 billion US dollars.

Learn to distinguish

Sometimes a network company is compared by those who first encountered MLM with a financial pyramid. Of course, at first glance, the scheme by which sales are carried out is not very simple. However, when it comes to network marketing, a person is not required to invest huge amounts of money and then just sit and wait for a miracle.

If this is real network marketing, how to make money in this area? It will take a lot of effort to grow your customer base. At first there may not be any profit. However, if you put in some effort, you can soon start receiving some income from sales. If the network is too large, the newcomer will be far from the top. In such cases, he should not expect a move to the Maldives or exorbitant fees. But a couple of tens of thousands as a salary increase is quite realistic.

However, before you become an agent and start attracting clients, there are certain things you need to pay attention to. They will allow you to avoid a financial pyramid. So:

1. True network marketing offers to sell a specific product or service that is contained in the manufacturer’s catalog. Products are never purchased for future use. Only those products that have been ordered by customers are subject to sale. Payment for goods is made on the day it is received from the warehouse.
2. A company operating on the principle of a financial pyramid will require payment of membership fees or the purchase of “securities,” which outside of this organization are nothing more than ordinary candy wrappers. In addition, in a financial pyramid, each person receives a profit not at all from the volume of products sold by him and his network, but from the number of people whom he brought to the company and who paid membership fees to it.
3. Another type of online earnings that is questionable is the sale of various equipment or software. Before starting work in such a company, you will need to pay for a certain package of services that allows a person to take one or another place in the trade chain. These can be various tools for work in the form of a plastic card or a personal account, the use of which is impossible without paying a subscription fee. Where can you find this kind of network marketing? Examples of running such a business are far from isolated. Thus, Talk Fusion attracts potential clients and agents with offers of income that can only be received after paying a certain amount in advance and attracting two or more new recruits. The chain created in this way will generate profit. Such a scheme is more similar to a financial pyramid, although the company still has a product that needs to be sold. But, in order to succeed in this company, a person must have the qualities of a psychologist, speaker and leader. And even in this case, he is unlikely to be able to rise from the initial level to the very last step.

From the above, we can conclude that successful earnings in an MLM company are possible only after a preliminary study of all the conditions of cooperation. Only by doing right choice, you can achieve successful promotion.

Assessing prospects

How to start making money in direct sales? To conduct such a business, a reliable and promising network company must be selected that will allow you to achieve the desired result. The most the best option a well-known brand will appear at the start. When choosing it, you will not need to make much effort to convince customers of the need to purchase. Cosmetics manufacturers such as Faberlic or Oriflame, as well as companies offering household goods (for example, Amway), are popular. Consumers have already appreciated these products, and they will buy them without any worries.

However, it is worth keeping in mind that the niche of well-known brands has already been occupied by other distributors. And for those who have chosen network marketing for themselves, how to make money in this case? A high level of competition will require the use of a special strategy, without which it will be impossible to create a customer base and start receiving your own passive income. Of course, in this regard, it is easier to make money in a newly created network company that offers a product that inspires consumer confidence, but is also scarce on the market. These are new dietary supplements, training courses, devices for health and home, etc. The choice of one direction or another will largely depend on a person’s personal interest, as well as on his desire to make money from it.

Rating of MLM companies

On Russian market present a large number of manufacturers who sell their goods through direct sales. What are these network marketing companies? Their rating contains those brands that occupy almost 70 percent of the MLM market. First on this list is Avon. It is followed by Oriflame. Third place belongs to the Amway company. On the fourth is the Mary Kay company, offering cosmetics. Faberlic occupies fifth place in the ranking.

The remaining companies are considered smaller and cover the remaining 30 percent of the market.

Education

If network marketing is chosen as the direction of business, how to make money on it? You should pay attention to the assistance that company representatives provide to newcomers. It may include various manuals and video tutorials, trainings and meetings. All this, as a rule, is provided completely free of charge. Sometimes curators help in attracting first clients. Without training, it is impossible to work in MLM at any stage. The more detailed information If a person knows about the product and its benefits, the easier it will be for him to convince other people that they need it. That is, persuasiveness directly depends on the existing knowledge base. The experience of MLM professionals also helps, who will definitely tell you how you can make a profit faster, as well as attract new people to create passive income.

Receiving a profit

An important point when choosing a network company is to study the scheme for accruing funds and bonuses. After all, earning money is the main motivation for any person.

With a fairly transparent scheme for generating income, the absence of penalties, as well as unrealistic targets for the sales volume proposed by the company, working in a chosen network company is quite capable of bringing good results.

Action plan

After choosing a specific network company that provides an excellent opportunity to make money, it is recommended to draw up a business plan for yourself that will allow you to understand what attention should be paid to.

So, it’s worth choosing a way to get money. This could be through direct selling or using a passive option. Which one is more promising? Often product distributors seek to start with personal sales. At the same time, they get the opportunity to study demand and create a customer base.

Professionals who have thoroughly studied network marketing look at this issue somewhat differently. How to make money according to their advice? MLM gurus recommend that beginners start from two positions at the same time. After all, among potential clients there will always be people who want to receive additional income, as well as those who wish to purchase products at the purchase price.

Networkers who are at the highest or middle level in the hierarchy of the distribution scheme note that they owe most of their earnings to the work of their subordinates, and not at all to direct sales. Thus, after some time, having built up a client base, you can completely abandon direct sales of products, having properly motivated the entire multi-level structure of agents.

Sales methods

How to earn a good income in a network company? To do this you will need to find the most effective methods attracting clients. There are several of them:

1. Direct contacts with people. This method is used if a person working in a network company has free time to visit public places or there is a very large circle of relatives and acquaintances who are not yet involved in the MLM business. However, judging by the reviews of professionals, this method It takes a lot of time and is often ineffective. This option is relevant if you already have a list of clients who only require delivery of catalogs and products.
2. Creating a consumer base using social networks, your own website or online store. In this case, you will need to devote less time to work, and the coverage of the audience of potential clients will be much wider. In this case, only those users who are interested in the company’s products or want to receive additional income will respond to the offer.
3. Creation of contextual advertising and landing pages, sending offers to advertising sites and by email.

Anyone who wants to make money in network marketing can increase their profits several times if at the initial stage 2-3 MLM companies are selected at once. Thus, customers can be offered simultaneously several brands of cosmetics, as well as products intended for face and body care. This option is also beneficial because the cost of the product among competing companies differs. This allows you to select products from the desired segment for people of different income levels.

Knowing your own character

Not everyone can achieve success in network marketing. In order to earn a high income, you must have the following qualities:

• patience and stress resistance;
• sociability, which presupposes the ability to speak and then maintain a conversation with any person;
• perseverance, which will allow you to achieve your goal, sometimes returning even to places where you have already received a refusal;
• psychological skills that allow you to convince a person of the need to purchase a product;
• leadership qualities that will provide an opportunity to develop a chain of passive income;
• oratorical qualities to speak confidently, correctly and beautifully;
• ability to plan own time, which will allow you to avoid fuss, eliminate inconsistencies in scheduled meetings and leave yourself time for rest and self-education;
• trading skills.

A person who has the qualities listed above, applying all the rules recommended by professionals in this field, will definitely achieve success in network marketing.

The number of distribution companies specializing in MLM is increasing every year. This is due to the fact that this business is profitable and quickly generates income. It’s easy to do without even leaving your home. If you study in detail the basics and concept of MLM marketing, you can achieve excellent results in just 2-3 months.

What is network marketing

MLM business is a multifaceted concept that opens up many prospects. It implies the concept of selling services and goods, based on the formation of a network of independent sales agents who not only sell products, but also have the right to attract new partners who will be endowed with similar rights. The income of each networker is formed from commissions from product sales and additional remuneration (bonuses), which directly depends on the volume of personal sales of attracted sales managers.

History of Network Marketing

Karl Rehnborg is considered the founder of the MLM business. He developed ideas that later turned into an entire industry with huge multimillion-dollar turnover. In 1927, in the USA, Rehnborg began working hard on creating nutritional supplements. He distributed the developed drugs for testing purposes free of charge to his friends, who subsequently refused to take them.

After Karl realized that free things were not valued, he began selling dietary supplements: the results were not long in coming. Information about the drugs spread quickly, and the number of people interested in them increased. Karl Rehnborg could not independently satisfy the requests of all clients, so he had to come up with a new scheme. He invited his friends to provide information about dietary supplements, and, subject to successful sales, promised to pay commissions. The history of network marketing began with these events.

In 1934, the first major company, California Vitamins, was founded by Carl Rehnborg. It operated a sales system in which the consumer of a product became its distributor. In 1939, the marketing company was renamed Nature's Sunshine Products, but the principle of drug distribution remained the same. Network agents independently attracted new clients to cooperation, advised them, drew up sales plans, came up with individual sales schemes, and offered to create their own network.

The MLM company fully provided networkers with goods and paid commissions on time. This is how a new definition appeared in MLM - single-level marketing. The business story did not end there: new round asked by American Way Corporation (abbreviation Amway), created in 1959 former employees Nature's by Jay Van Andel and Rich de Vos.

What is the merit of these people in the development of MLM business? They began to sell not just one product, but several. The list of products offered to consumers has been expanded with food additives, chemicals for household and household goods. Soon, network marketing companies appeared on the world market. They began to operate successfully in Russia, China, and England. Their importance has become enormous both for people and for the economies of many countries.

Types of Network Marketing

The MLM business is developing rapidly, and its varieties are becoming more diverse every year. The main types of network marketing are as follows:

• Puff marketing (the most popular, adapted to the Russian market, its striking example is companies selling cosmetics - Avon Products, Faberlic, Mary Kay, Oriflame. The essence of this type of marketing is that the company’s concept is based on the work of certain layers of employees at several levels.
• Pyramid. This type of marketing involves the following scheme of work: there are founders who find several people selling services and goods, they subsequently find several more people and control their activities, and so on ad infinitum.

How does network marketing work?

The operating principle of Russian MLM companies is the same:

1. First, a person undergoes an interview, during which he is introduced to further prospects and emerging opportunities.
2. Then the person is told that he must, using the network, attract new people, the greater their number, the greater his monthly income.
3. How does network marketing work? New employees, becoming distributors of the company, independently promote it, for which they receive commissions, contributing to their own development and the development of the business.

The essence of network marketing

What is MLM (multilevel marketing), what is its essence? This is one of the most popular and effective ways legal promotion of services and goods. MLM companies offer unique products that are becoming in demand both in individual cities, regions, countries, and throughout the world. MLM business is not only about direct sales. To be successful in this field, you don't have to sell anything.

The main components of multilevel marketing are well-organized intellectual distribution, efficient use all its possibilities and advantages. In other words, the main essence of network marketing is that consumers, being at the same time partners of a company, develop its network and make a profit from turnover.

Network Marketing Principles

MLM business is based on following rules:

• equality for all;
• helping others;
• minimum entry costs;
• availability of residual income;
• pyramid structure (this principle of network marketing ensures the constant development of the business and its stability).

Network Marketing Structure

Running through the MLM business and not noticing the main thing, many never achieve the desired results. Why? Because they don’t know how to properly build a network marketing structure. What is structure? These are people who take part in organizing trade turnover, and the final income directly depends on their number. It may include acquaintances, friends, complete strangers. The main task is to skillfully unite them and constantly motivate them for successful advancement.

Network companies

There are many companies that specialize in MLM business. They sell cosmetics, chemicals, household appliances, household goods, other products. Detailed list network companies operating successfully in Russia are listed on the Mlmbaza website, the most popular:

• Life;
• Oriflame,
• "Siberian Health";
• Faberlic;
• Avon;
• primerica;
• Shaklee;
• Talk Fusion;
• Nevers;
• Vitamax;
• Zepter International;
• Kirby;
• Atistek;
• Lurk;
• Pravda.

Working in network marketing

Anyone can try their hand at multi-level marketing business. Companies provide training in network marketing, but not everyone can master this profession. A distributor of an MLM company must be able to organize the sale of products and draw up schemes for the effective distribution of services and goods. The profession obliges you to attract new partners, expand your client base (network), apply intellectual resources, use the network, and set up a system that will generate income directly for the company and the networker.

Network business on the Internet

The World Wide Web opens up incredible opportunities for networkers. Using her gifts, you can make a fortune without leaving your home. On the Internet, products are promoted through their own websites, information groups, blogs, and communities. The main task of the distributor is to find the target audience, create an effective information distribution network, and constantly improve and develop it. Network business on the Internet has the following advantages:

• the ability to conduct business from anywhere in the world;
• the ability to attract potential partners from any region, city and country;
• a variety of information programs that provide prompt assistance in solving organizational issues, conducting education and training;
• the ability to sell through online stores with an integrated order basket;
• possibility of learning online.

How to make money in network marketing

To achieve success in this business, you need to follow several simple rules:

• be a sociable person who is not afraid to approach strangers with a proposal;
• be able to interest, present products in a bright and unusual way;
• actively involve your relatives, acquaintances, and colleagues in the matter;
• constantly improve yourself, improve intellectual level;
• skillfully build a pyramid by attracting new people in order to not only earn commissions from sales in network marketing, but also provide residual income.

Cons of Network Marketing

Before starting a career as a distributor, you need to familiarize yourself with the main disadvantages of the MLM business. This is the only way to understand how correctly the direction of activity has been chosen. List of disadvantages of network marketing:

• unstable income;
• great moral stress, constant pressure from clients;
• the need for material investments;
• high level responsibility for the people involved.

Benefits of Network Marketing

MLM marketing has both its pros and cons. He teaches how to receive unlimited income, which depends on the aspirations and character of a person. Another advantage of network marketing is financial independence. Network agents have a free work schedule, plan their day independently, make decisions, gain new skills, the opportunity to develop socially, and improve their status. These advantages cover all the disadvantages of this type of activity.

Video: how online business works