Network marketing in the field. What is mlm. Why people don't like MLM

Network marketing on the Internet: a business concept + 6 myths + 8 pros and 4 cons + 5 popular MLM companies + 5 network company selection options + 5 signs of fraud + tips for beginners + instructions on how to become a distributor (using Oriflame as an example) + 8 attraction tools partners + recommendations to entrepreneurs.

Virtually any entrepreneurial activity with the promotion world wide web transformed into an online business. Methods for promoting goods, ordering methods, product delivery - everything is now oriented towards the virtual space.

So, many companies began to work according to the MLM scheme. Network marketing on the Internet opens up new opportunities for their owners and is rapidly developing.

Today we will talk about how it works, why it is needed, how to open such a business, and evaluate the prospects.

Network internet marketing concept

Network Marketing (CM) is a form of exercise trading activities when sales agents establish interaction with buyers. Those. the supply of goods, the provision of information products from the manufacturer to the consumer on the basis of a multi-level structure can be called network internet marketing.

For the first time, this business tactic was applied in the 27th year of the 20th century by the American Carl Rehnborg. Today his example is followed by famous companies like Mary Kay, Faberlic, Avon Oriflame, Neways, Amway, etc.

Network marketing is growing at the same pace as software, telecommunications, and the Internet. In total, network companies reach a turnover of 210 billion dollars a year. Japan is considered the leader in the development of network marketing.

The Internet has given rise to a new wave of popularity for this type of business. However, network marketing is still controversial. Many people who are close to the poverty line were able to achieve material independence with his help. Others "look like a wolf" at the concept of network business, mistaking it for financial pyramids, fraud.

If the latter tried to delve into the essence of the network business, their opinion would change ...

By promoting goods / services on the Internet through multi-level marketing, you deprive yourself of intermediaries who usually inflate the final cost of the product.

Also, network marketing is characterized by the absence of. And this eliminates the need to spend on the implementation of an advertising campaign on the Internet, since the products are distributed through recommendations from person to person.

The mission of MLM is to simplify, reduce the cost and speed up the promotion process.

Network marketing gives everyone the opportunity to build their own business on the Internet, while creating an extensive network of consumers. Anyone who develops a multi-level structure receives % of the total turnover for their activities. This is how you get passive income.

Myths revolving around online network marketing

Before we look at the principle of Internet network marketing, let's dispel the myths that skeptics have come up with:

However, supporters of network business on the Internet also come up with a lot of fables:

Multilevel marketing is the most best view business for the future.

Not a single dozen of the largest MLM companies on the Internet / in real life have been able to achieve a leading position in their half-century of operation.

The traditional concept of product distribution is still not inferior to the network one. Therefore, the statement that MLM is the business of the future is wrong. Although, a single sale of goods on the Internet is a truly progressive commercial activity.

Network marketing is the key to wealth and success.

Do not believe that on the Internet, network companies will necessarily become a source of financial independence. If this statement were 100% true, everyone would have retrained as networkers long ago.

In practice, only a few succeed. It all depends on how you take advantage of the opportunities offered by network marketing on the Internet;

MLM is an opportunity to run your own business.

If you are joining a multi-level company, it is a mistake to assume that network marketing will allow you to work exclusively for yourself.

First of all, you earn profit from it. And from this profit, she allocates you a reward corresponding to your labor contribution. But this is only if you join an MLM company, and do not act as its founder.

How does network marketing work on the Internet?

First-time network marketing people think that their earnings are affected by the number of customers, but key factor here is the number of distributors we managed to attract. With their work and income, they will bring you a certain percentage of earnings.

An MLM company operates without stores. The sale of manufactured goods occurs due to the fact that each networker attracts new buyers and sales agents. Thus, a network is being built, why on the Internet such a marketing scheme is called network.

Considering network marketing from the position of a person who decided to open it on the Internet, for him distinctive feature will but increase the cost of forming a mentoring system.

Those. the entrepreneur needs to direct part of the money for vocational training. There will be expenses for promotional materials that will be used by distribution partners.

From the point of view of buyers, there are advantages. On the Internet, network marketing gives them a guarantee of quality, reasonable prices, the possibility of obtaining exclusive products, etc.

However, it is worth dwelling on the advantages and disadvantages of MLM in more detail. Those Internet users who seriously decide to engage in network marketing should know its positive and negative sides.

1) Advantages of network marketing on the Internet.

1. Training, advanced training. In network companies that value their reputation and care about the amount of profit, courses are necessarily provided, seminars are held. Therefore, their employees are always competent, which has a good effect on earnings;
2. Free chart. Distributors can work as long as they want (2, 5, 10 hours). If the deal you made is effective, you can rest. However, there are less lucky days when you have to sweat.

The Direct Selling Association, which operates in the United States, conducted a study, the results of which revealed that 90% of workers in the field of network marketing work literally 30 hours a week. The remaining 10% of respondents - even less (10 hours).

The dependence of the amount of earnings on your contribution. If the salary of a clerk depends on the "uncle" for whom he works, then with network marketing everything is different. There is no restriction here.

A diligent, creative and quick-witted person is able to win over customers on the Internet, is not afraid of a large amount of work. This means that his earnings will only grow.

Creative work. Network marketing is certainly interesting and does not force you to sit in the office for routine paperwork. You won't be bored either online or offline with MLM.

Moreover, the sale of goods can take place offline 24/7 and without your participation. For this, social networks, blogs, websites, multi-profile advertising on the Internet, and other tools are used.

Expanded geographic space. Traditional multi-level marketing will not give you as many opportunities as online MLM. You can use the World Wide Web to establish contacts with customers, attract new distributors to the network from all over the world and without a personal meeting.

To communicate with partners, you can use video conferencing, chat, Skype. At the same time, such tools are available on the Internet to everyone and for free.

3. Friendly team, atmosphere of solidarity and mutual assistance. Because in network marketing the team is united by one goal, everyone interacts with each other. A young distributor can count on the support of more experienced colleagues.

Opportunity to choose business partners, the pace of professional growth.

Public recognition of the achievements of each distributor.

2) Cons of network Internet marketing.

1. income instability. Working on the Internet, you can actually receive both unlimited earnings and face lack of money. Network marketing is changeable, and in order to minimize such risks, you need to constantly increase your customer base.

Rapid fatigue, neuro-emotional stress. Many sales agents have a hard time constantly working with people, continuous communication. Usually, distributors are treated negatively, perceiving them as sales representatives trying to sell some nonsense.

Because of this, one has to face a moral burden. Some distributors cannot stand the pressure of customers and for this reason leave the network business. But thanks to the Internet, this factor is gradually being erased. You need to be emotionally and stress resistant.

Responsibility for subordinates. Those who are not familiar with the responsibility for their own actions should not even try to work in network marketing.

This type of business on the Internet inevitably leads to responsibility for others. If you undertook to teach someone, one way or another you will have to be responsible for the actions of your protégés.

2. The need for cash deposits. When engaging you in network marketing over the Internet, sales agents can promise that . In reality, you will have costs, for example, for the purchase of catalogs, etc.

Let's summarize. SM on the Internet is an activity that is beyond the capacity of people who are deprived of purposefulness, patience, sociability, the gift of persuasion, and organizational skills.

How to start online business on the Internet?

If you have the idea to become a distributor, you need to choose a large MLM company with a good reputation and turnover. There are quite a lot of them on the Internet and in real life.

These companies specialize in the sale of cosmetic products. If you do not intend to work with this category of goods, you can choose other companies. However, the listed companies are proven, and in any case will help you gain experience, understand the basics of network marketing on the Internet.

In order not to make a mistake with the choice, pay attention directly to life of the organization. If it has already taken place and has been operating on the market for more than 4-5 years, it can be trusted.

No less important the degree of demand for the product. Food, cosmetics, etc. are quickly consumed, therefore, they have regular consumption. The products of the company you choose must be useful for consumers, then they will buy it on the Internet.

In addition to the above two factors, the following are also taken into account:

• Functionality, representative usability, its presentability.
• Availability of training, corporate assistance. A normal MLM company professionally builds a training system, motivates its employees to attend advanced training courses and trainings.
• Validity of the marketing plan, its type. Often used stepwise.

Here are the signs of a scammer:

• large entry fee (starting from $100);
• lack of goods, or its unjustified market value;
• the dependence of the amount of earnings not on the turnover, but on the number of buyers you brought;
• the promise of making quick money;
• lack of confirmation of purchase and sale transactions, acceptance Money etc. in documentary form (contracts, receipts, waybills).

Each MLM organization operates in accordance with the laws of its country. Therefore, in Russia, Ukraine and a number of other states, a person can become a sales agent only upon the onset of civil capacity. Those. to an individual must be at least 18 years of age at the time of employment.

Basically, the relationship and the level of salary are not announced in the collective / labor contract, but are formed on a contractual basis. This deprives the distributor of the social package and other guarantees that rely on wage workers. The conditions fulfilled on the Internet by a distributor within the framework of network marketing are determined by normative documents companies.

The main requirement for becoming a sales agent is the sale of a certain amount of goods or for a specific amount.

For example, to become an Amway employee, a person must:

But Bing Han International hires on different conditions:

1. First, you contact the office of an MLM company or find its official website on the Internet to register.
2. Then you should be trained / consulted by 2, 3 ... experienced specialists, buy or sell 1 unit of goods.
3. In conclusion, you will need to attend 5 trainings.

After you've been hired and mastered the strategy of network marketing on the Internet, you need to earn your first money. To start, you have to start looking for 2-3 people who will purchase products from you.

If you intend to start seriously, along with finding clients, look for partners who will be interested in MLM. With their involvement, you will increase your income, because the network will expand, and with each of its branches you are entitled to some kind of reward.

Theory is theory, but it is much easier to understand the principles of network marketing on the Internet on practical example, truth? Then, let's not put it off in long box!

How to become a distributor in a network company (on the example of Oriflame)?

Many people who have made the decision to work in network marketing, rather than for hire, start their activities at Oriflame. But only those individuals who demonstrate personal development, gain experience and knowledge, and are ready for time and financial costs achieve success.

To have a diligent team of distributors, Oriflame provides each employee with the following benefits:

The working system of a network company has been tested for decades. Today, an Oriflame employee does not need to run around acquaintances and friends with a catalog under his arm, persuading them to write out any cosmetic product. All network marketing work can be done online. Moreover, there will be additional or basic income, it depends on you.

As in any other form of network marketing, it is important to build your team at the beginning of the activity. You need to use the Internet to attract new people who will help you increase sales of products (you will learn about ways to attract new people in the next section).

Invited users receive not only, but also their advantages. For example, the possibility of purchasing goods at a 20 percent discount. The recruited team of people chooses by what principle it works in network marketing - via the Internet or offline.

Anyone can become an Oriflame distributor, but at the same time, he must have the following qualities:

• diligence;
• focus on success;
• perseverance;
• sociability;
• faith in one's own strengths;
• purposefulness;
• Internet access.

Network business in Oriflame is available to women on maternity leave, retired citizens, students, housewives.

1. What do you need to work in the network company Oriflame?

News network business can be on the Internet on a free schedule. This method of work is convenient and gives more opportunities to increase income. Such employment will allow you to reach a monthly salary of 1 thousand dollars. And this is not the limit.

In the network system of the company there is no boss who would cut your salary or deduct money from it for any needs. Therefore, only your personal activity on the Internet affects the amount of profit.

Start with registration. Follow this link https://www.oriflame.ru/business-opportunity/become-consultant. You will see a registration form that you need to fill out:

Activate your account with an email.

A letter will again be sent to the post office, where you will be notified of the personal number assigned to you and the sponsor to which you are attached.

The sponsor is your personal mentor. He will coordinate your actions, help you succeed. If necessary, you can contact him for advice.

You can get immediate income from sales. To do this, you need to show people an electronic catalog on the Internet and motivate them to buy cosmetic products. You can create this log by going to the " Sales support».


Give it a name and click on the Save button.

The profile displays all the necessary information to conduct a network business with Oriflame:

• turnover,
• purchase history,
• receiving awards and achievements.

If you are going to register a new consultant, this will need to be done through this tab.

After clicking on the appropriate button, an online questionnaire will open in front of you, similar to the one you previously filled out. Here you need to enter the data of the invited person, indicate his mail so that he / she will receive a letter to it.

Further actions now for the little one. The person who received the newsletter must activate the registration using the access parameters that were sent to his email inbox:

Thus, working with Oriflame on the Internet, you make a profit from the sale of cosmetic products. Since distributors are offered lower prices, your income is the difference between the catalog price and the consultant price.

It is possible to build such a structure even from a small number of consultants invited by you. When you yourself master this key point in marketing, you can teach this to your wards, who in turn will teach the people they attract.

As a result, a strong network system will be formed that will bring you additional income.

You also get the following benefits:

2. How much money do employees of the network business in Oriflame receive?

To receive the money earned in the network company via the Internet, you will need to register as individual entrepreneur.

Since Oriflame works transparently, salaries are charged to employees Bank transaction. Therefore, in order to withdraw money from the accounts, you must be an entrepreneur and pay taxes in the future.

Let's calculate the costs:

• Registration on the website of the network company will cost you 149 rubles. This amount will be included in your first order. Sometimes promotions are held, due to which the registration fee can be reduced to 10 rubles.

Registration in the Oriflame network business does not oblige you to place an order, distribute goods. You do everything as you wish. The company's consultant is an independent distributor, which implies freedom of action, independence.

• For registration of an individual entrepreneur, you will need to pay a state duty of 800 rubles.

If you sum up all the expenses, you get 949 rubles.

Of course, you will also have to pay for all orders. However, the money for it will be returned by your own customers upon receipt of the products.

Now about income. In the status of a novice consultant, only on direct sales on the Internet, you can receive an average of 5-15 thousand rubles. If you assemble a team, the reward will be formed by the network company depending on the amount of orders of your partners and will vary within 3-22%.

For example, a partner has a turnover of 12 thousand rubles. or 450 BB (points). According to the premium table, this is 6%. You are entitled to the difference: 22% -6% = 16%. Now you need to calculate how much it will be 16% of 12 thousand rubles. - it turns out 1920 rubles.

You are entitled to such income from one person under the above conditions. And if there will be, say, 10 partners with such success? Network income will be 19.2 thousand rubles!

8 Ways to Attract New Business Partners to Internet Network Marketing

You should not lure people on the Internet to network marketing by inventing new fables. It is also inappropriate to lure the assortment and quality of goods. The assortment is expanding, the quality is improving - such a picture is ubiquitous, it is already considered the norm, and not an advantage, so this argument is no longer relevant.

It is best to show a potential partner the prospects and opportunities that he will receive by working in network marketing via the Internet. Tell him about the advantages and disadvantages (that is why we have listed them in this article), show the convenience of work.

On the Internet, to attract future employees of an MLM company, the following are involved:

• Sites. Your resource is the most optimal and reliable option. It makes sense to create it if you have the ability to fill it with content. Articles should not only cover questions about network marketing on the Internet, but also be set up for SEO promotion.
• Thematic forums- an effective method of finding companions. It is necessary to communicate on sites dedicated to the topic of making money on the Internet.
• Groups and accounts in social networks. On these sites, you have the opportunity to post information about your MLM company in other communities and created by yourself.
• Postal mailings. Relying only on this method is impractical. Many will ignore your emails, marking them as spam. Therefore, treat it as just an additional tool.
• Boxes and similar services. CPA for a fee will help you find new distributors in your network marketing structure. They have a large number of users who want to find a job.
• Contextual banner ads. On third-party sites on the Internet, you can buy contextual ads or banners, which, thanks to their colorful design and competent slogan, will help you find caring people.
• Youtube channels. In the 21st century, people are losing the habit of reading, and video hosting sites are gaining more and more popularity, where you can both have fun and earn money. It's comfortable and effective method attracting new customers, training existing sales agents.
• Resources for finding vacancies, etc. On web platforms where people are looking for a part-time job or main source of income, those who are interested in your ad are guaranteed to appear.

You can attract customers and new distributors from the Internet without personal communication only when you have already taken place as an employee of network marketing, have created a certain team, having previously selected the target audience interested in how to improve their financial situation.

At the initial stage, communication is necessary. Moreover: you will teach your new partners what you yourself managed to learn.

8 Tips for Online Network Marketing Beginners

1. If you want to succeed much faster than expected, don't sit back. It is necessary to improve, read the relevant literature, and not be ashamed to learn from the experience of experienced networkers.
2. Do not neglect a thorough study of the product, its properties. You need to be fully prepared when a customer asks you about product features. Otherwise, you will not see sales. And do not try to lie in order to “shrink off” more!
3. It is necessary to strive not only to conduct trade, but also to develop your own network on the Internet. This is perhaps one of the most important rules of successful network marketing.
4. Promote products on the Internet and search for partners using as many available tools and methods as possible.
5. Feel the fine line between attraction and imposition. If you see that this or that Internet user does not show interest in you, stop spoiling his nerves and yourself.
6. Be patient, bring everything to the end, even when meeting with failures. Do not think that if your friend with the help of the Internet could not achieve in network marketing good results, then the same situation will develop with you.
7. Plan your time right. After all free schedule gives freedom of action. Apply the “important first, then urgent” formula. Rational planning of time is the key to the success of any activity, including network marketing.
8. Learn original approaches, be bright, extraordinary and charismatic. People who have these qualities are drawn to them. This is felt even on the Internet, where personal acquaintance is not provided. So you will increase your rating, increase sales, for which you will be pleasantly rewarded.

How to create your network business on the Internet?

We figured out how to become a distributor and the next steps. But what about those who want to open their own network marketing on the Internet?

Firstly, such people should already have a company that sells goods own production or other brand products. In any case, there should be no complaints about the quality of the goods. Their cost also plays an important role.

Are you okay with the quality and range of products? Then you can enlist the support of competent distributors, create own network.

Be sure to create a system of deductions for your distributors so that it is beneficial not only for you, but also for them. You must take care of a good system of training and incentives for newcomers to the ranks of networkers. After all, the level of profit depends on their ability to attract customers and employees to your network company.

By this point, it is important for you, as a “leader”, to try to develop leadership qualities. It's good when you have what to sell and to whom, you have staff. However, if you are not a motivator, your online network marketing will stall.

Only with leadership abilities is it possible to generate a branched and strong structure.

It, in turn, should be diluted with unique technologies, its own methods of work and promotion, since the process of network marketing itself is a dynamic trend. Now it can develop, and tomorrow it can slow down and completely die out.

If you manage to spin this "money machine", it will soon bring you dividends. This will help you create a website on the Internet.

It is possible to open a network company and develop it even with a small budget. You can conduct such a business via the Internet without interruption from the main business activity.

How to get started with online network marketing?

You will learn about a competent start and the Magnet method from the video:

Network marketing on the Internet will give you unlimited financial prospects, if you focus on building a strong team, you will earn a good reputation.

Properly designed training system, continuous support for new members, regular corporate events, taking action to increase sales - all of which will help you improve the quality of your life.

Why did I choose the cautionary title for the article? Because, unfortunately, recently I have come across deplorable stories of people working in network companies and having the same deplorable results of this very “work”.

Network marketing (or multilevel marketing; English multilevel marketing, MLM) is the concept of selling goods and services based on creating a network of independent distributors (sales agents), each of which, in addition to selling products, also has the right to attract partners with similar rights . At the same time, the income of each network member consists of commissions for the sale of products and additional remuneration (bonuses) depending on the volume of sales made by the marketing agents involved.
Network marketing originated in the 1940s. The dawn of the network companies industry came in the 80s and 90s. One of the pioneers of the industry was the notorious American Way Corporation (Amway).

Myth #1. Network marketing is my business.

Do you seriously think that this business is yours? What if you think well? Thought? Not! Network marketing in 99.999% of cases is not your business. Network marketing is only a business for the (very smart and enterprising) people who started it. Dot. This is the business of those people who speak to you at the company's seminars once a year and deliver motivating and "grand" speeches from the stage.

What is the problem here? And the problem is that those newcomers who come to the network company from the very beginning are “explained” that he will be engaged in BUSINESS. Yes it is. But not all newcomers clearly understand whose business they will be engaged in. Understand that a business is only yours if you have the authority to make key decisions about running it. Can you make such decisions in "your" network company? Can you change the price of products? Can you change the assortment and suppliers? No. You are only RESELLING the products yourself or through the attracted new sales agents. You are forced to obey and comply with all the conditions and rules of doing business, which are dictated to you by its founders. Even if you have registered a business or a company and sell the products of "your" network company, you have very limited freedom of action, unlike a full-fledged entrepreneur.

Understand that if you work for a network company, then this is NOT your business. In this case, your activity can only be called an alternative to working “for an uncle” and self-employment, but by no means a full-fledged business, in the true economic sense of the word.

Myth #2. There is a lot of money in network marketing and you can get rich quick there.

Of course the most the best option- it is certainly to try and look at the result. But, as long-term practice shows, there is NO big money in network marketing. Sometimes there is no money at all, let alone a lot. How so, after all, network companies make billions in profits? Yes, they do. The founders and those who head these companies and are personally close to the management receive. Ordinary mortal distributors are content with small checks to barely make ends meet. You can object, they say, you can become a leader! You're right. You can also fly into space. The whole question is who will not "vomit" on the way to this space, who will not lose consciousness and how long to fly to this "space". And in general, do you need this space?

All that an employee of a network company does is to search for those who would sell more and those who would sell more and who would be looking for the same thing.

Network marketing people (forgive me) are just middlemen. Just INTERMEDIATES. Of course, intermediaries can sometimes make good money, but the main profit is received by the owner.

There is no big money for an ordinary distributor in network marketing, they simply do not exist there. All the golden mountains that your "mentors" and leaders draw for you are a farce and pure motivation with profanity. Getting rich in network marketing is very difficult. I won’t say that no one has made a fortune selling detergents, toothpastes or super horseradish cutters, but the pictures that you are drawn are radically and dramatically different from the harsh reality.

Think of network marketing as an alternative to regular work (and then carefully), as an additional source of income, but not as easy and short cut to wealth. I repeat, of course, there are people who, being distributors, have become leaders and made a fortune for themselves. But these are tough, unceremonious people with pronounced leadership qualities, these are people who have gone through fire, water and copper pipes in this matter, putting a good part of his life on it. Such "lucky ones" are one in a million distributors. Do you want to try your luck? That's your business.

Myth #3. My mentor is my friend, he will help me in everything, teach me everything and explain everything.

Hell no! Someone who is your mentor is definitely not your friend. Friends do not strain each other from month to month, constantly reminding that it would be necessary to qualify this month and buy three and a half more super horseradish cutters for the future, they say, they may be needed. Friends do not receive material benefits from friends, at least good and true ones.

Your mentor is the one who is most interested in your success, eloquent people told you in seminars and meetings, he will teach and guide you. So it is, but what is the problem in this situation? And the problem is that the wards begin, under the yoke of their “beloved” mentor (who, by the way, should have been sent to a dense forest for a long time) to do things that contradict the actions of a person in a bright mind and good health. Such wards begin to take loans, get into hopeless and hopeless debts, begin to make decisions that are not their own and not their own brain. This often leads to very unpleasant consequences that have to be sorted out by the wards themselves, already without the “help” of mentors and leaders.

In general, in our life we ​​are under the constant influence of other people, whether we like it or not, and very often there is no awareness in our actions and decisions. In network marketing, dependent distributors, listening to the motivation of a mentor and looking at his painted pictures of mountains of gold, lead their lives downhill (in a very bad case) without knowing it. This is sad.

Your mentor can be a good person and he can really be your friend, but this is in very rare exceptions and only if he is not very interested in your results in the network company, respectively, as well as his own. Understand that the boss will never have a true and sincere friendship with his subordinates - this is nonsense and it is contrary to business.

Mentors, seminars, educational and entertainment collective events in network marketing - their actions are mostly aimed at brainwashing, retaining distributors in the company and increasing the company's profits. They wanted to spit on you, on your life and on your problems. Remember this. The first leaders of the company will never share with you the intimate knowledge they have, as they are not interested in your growth to their level. They give you exactly the information and knowledge that you need to increase sales, nothing more. They are not interested in your true growth and unleashing your potential.

Let's sum up.

Of course, there are many positive aspects in network marketing. Working in network companies, a person learns a lot, goes through an excellent school of sales techniques and learns a lot of interesting things. In the process of work, he can cardinally (perhaps in better side) change your lifestyle, can start traveling if you haven’t traveled before, communicate with interesting and successful people, can discover yourself from a new perspective, and so on. There are definitely advantages. But there is no need to rely on MLM companies as if this is the only occupation worthy of you, that this is a gold mine and some unknown Klondike.

I repeat, you can consider working in a network company as a means and starting point for revealing your potential, as a school of sales, a school of communication and interaction with people. But those myths that you read above should not be forgotten. As one says good man and coach Ildar Zinurov: “There is no happiness in the network business.”

Yes, in network marketing you can earn money for a living, you can study, you can travel, working as a distributor, but the happiness that you are told about at the first and subsequent presentations is definitely not there.

We often take wishful thinking. You need to look at the results and draw conclusions. You need to use such a precious tool of yours as thinking. Use it! Think with your head. Trust the facts and results, not the words and pictures of your mentors and leaders. If nothing has changed for you for several (or even decades) years, then it is not prudent to believe that doing the same thing further (for example, plowing in a network company) something will change for you and you will start rowing money with a shovel. Don't start.

P.S. Who am I to talk like this about working in network companies?

I am directly related to work in network companies. I had the good fortune to work as a distributor Chinese goods, and in a not very simple version - with a bag at the ready, wandering through organizations. Handled cold sales. I consider it the most aggressive and difficult form of network marketing. I had a sales system, as in all similar companies, I had a mentor (and not one), there was a bunch of “washes” of my then virgin brain, and so on. I went through it all and realized (pretty early, thankfully) that this was NOT my business, that the mentors were NOT friends, and that things were NOT as sweet as they told me. Plus, I have many friends and relatives who are involved in network marketing in one way or another (some for more than 10 years). So I more than know what I'm talking about.

If you do not want to become victims of scammers, then you need to know exactly what an MLM business really is. Because here it is too easy to fall into the trap of a financial pyramid, and end up without money.

In this article, we will analyze how to distinguish a real MLM business from financial pyramids. And is it really possible to make money in MLM?

And first, let's see what the essence of MLM business, and why he is so much disliked "among the people."

What is MLM business in simple terms

The name "MLM business" comes from the English MLM - "Multi-Level-Marketing" (literally - "multi-level marketing"). Other names for the same phenomenon are network business, network marketing and the new "fashionable" name - "network marketing".

It denotes one of the options for organizing marketing - a scheme for distributing the company's products. Classic business is when there is a store where people come to buy our goods. The network business option is when a lot of people take our product and distribute it among their friends.

That is, in MLM we do not hire employees for a salary, we do not rent stores. Our task is to recruit as many volunteers as possible who will distribute our products themselves, receiving a percentage of sales for this.

In addition, these volunteers of ours will recruit their own volunteers. And then they will already receive a percentage not only from their sales, but also from the sales of all their “recruits”.

Who Invented MLM?

MLM as a type of marketing was invented, of course, in America. The early network organizers realized that people were much more willing to buy certain categories of products when they were recommended to them by their acquaintances. These are products such as floor cleaners, shampoos, cosmetics (note that almost all of these are “for women” products).

And it turned out to be a good thing, in principle. The goods of network companies were usually cheaper, because there were no costs for renting premises and salaries for employees. And in terms of quality, they often surpassed analogues from stores. Thus, networkers were able to bypass the most severe competition in the market of household goods.

But here's the question. Why do “the people” dislike this very MLM and network business so much?

Why is MLM so disliked?

If you do not believe that MLM is not loved, look at the ads they give in newspapers and on websites. They will never write directly - they say, we are recruiting people into the network business, come to the meeting then and then.

No, everything will always be hidden there and disguised as "opening a branch of the world's largest company" and under "need an assistant to the head of the business, I will teach you everything, salary from 50 thousand per month." Why such secrets and enticements? And because if you directly write that you are recruiting in MLM, no one will come to you. Because they don't like MLM =)

And there are two main reasons for that.

Reason #1 - Destroying Relationship Foundations

Have you ever wondered why we (humans) recommend anything to anyone at all? Why would we tell a work colleague where they make delicious sushi? Why should we advise a friend which car is better to buy? After all, it doesn't really concern us.

But nevertheless, we really want to run at least from the other end of the city, if someone needs our recommendation, and at least force him to listen to us. What is the reason for this behaviour?

Perhaps you think that it is because you are such a kind and nice person who simply strives to help everyone around you as much as possible. But actually it is not. We are happy to recommend, because in this way we dominate those to whom we recommend something.

Judge for yourself - we have some kind of Knowledge. that the person in front of us does not have (be it knowing where you can eat sushi and not get poisoned, or knowing which car is better in terms of performance). And by sharing this Knowledge, we show that we are better. Yes, yes, we are better and higher and smarter than a person who does not have this Knowledge.

And the higher the result a person receives on our recommendation, the stronger our dominance will be. Accordingly, we sincerely try to recommend only the best. And the one who asks us for advice subconsciously feels all this, and therefore believes our recommendation.

MLM should have been based on this principle, but here the whole thing is spoiled by money. When our familiar network manager recommends something to us, we always have a suspicion that he does it solely for his own monetary gain. Even if he really likes the product and would recommend it for free. But an unpleasant aftertaste remains.

Thus, MLM interferes with the fundamental set of unspoken laws human relations(It is also called the "social contract"). And it destroys friendships, friendships and even family relationships. And that's why people don't like him.

Reason #2 - Remotivated Zombies

If you have ever met a real "networker", then of course you understand what I'm talking about.

The basis of MLM marketing is strong training and strong motivation of network members. Humans are by nature very lazy and shy creatures. Getting them to sell something to strangers and unfamiliar people is not an easy task.

And therefore, each new recruit undergoes intensive training, where the emphasis is on motivation. They are brainwashed with promises of huge profits. They are told that they are the chosen ones, and everyone else only envy them. And they are also very convincingly told that their product is almost the most ingenious invention since the light bulb.

And people are gradually "blowing the roof." Can you imagine what it is like to know the whole truth alone (what is the most best job- this is a network business, and the best cream is Oriflame), but no one believes you, and shies away from you like the plague?

As a result, it becomes very difficult to communicate with networkers. All they talk about is the network business and their product. All they do is try to drag everyone they meet into their structure, to the “bright side”.

And again, this leads to a split in friendships and family relationships. That's why they don't like MLM. In the minds of people, getting into MLM is like getting into some kind of sect. And the one who is “trapped” will soon begin to rewrite his apartment for some regular “Herbalife witnesses”.

But there are, of course, positive aspects as well. If you do not lose your head, then MLM business can be an excellent development option for you. And you will keep friends, and you will still find new ones.

How much can you earn in MLM?

Networkers are very fond of this joke:

A man comes to the city and sees that on one side of the street all the houses are big, beautiful, well-groomed. There are expensive cars near the houses, and all the people are cheerful and happy. And on the other side of the street, the houses are small, dirty, dilapidated. All people in rags, eat rats.

He comes to one of these dirty houses and asks a passer-by why the houses opposite are so beautiful, but here they are so bad.

A passer-by replies - "Ah, there are networkers living opposite who are engaged in MLM."

The man asks - "What are you?"

Passer-by - "But we do not believe them!"

The anecdote is hilarious. But, unfortunately, as in any other type of business, most people employed in MLM have absolutely no income. A very small percentage of networkers have an income comparable to the usual salary of a qualified specialist. And only tenths and hundredths of a percent of all mlmschikov make really big money.

How to develop in MLM?

Yes, you can make money in MLM, and even a lot. But only on the condition that you actually work. And to earn money, you will be mainly engaged in recruiting people to your structure, and not in selling the product itself.

If you want to develop in network marketing, you need to have a huge number of personal meetings every day. And we also need to ask our friends to organize parties at their home, and bring their friends - for whom we could conduct an “impromptu” presentation of our product and business.

And most likely it will take you several years to build a large and loyal structure with which you can have large incomes. Therefore, please do not flatter yourself with promises of quick earnings. As elsewhere, you have to work here.

And most networkers eventually realize that MLM is not the option to which they would like to devote their entire lives. Therefore, they go into other types of entrepreneurship. But they retain the skills they have acquired while working in MLM.

And even today there are projects that masquerade as MLM, but in fact are something much worse.

How to distinguish MLM from a financial pyramid

If you haven't noticed yet, today there is a huge offer on the Internet to participate in some super innovative projects. As a rule, we are talking about decisions that will turn the whole world upside down in some area. In the field of housing, in the field of transport, in the field of the Internet or in the field of telecommunications.

The only problem is that this ingenious solution is still under development, and it cannot be used yet. Or you can use it, but it is so inconvenient, crooked and weak that it loses even to free counterparts.

And you are invited to either buy a share in this project, or buy a product and pay for it every month. And people do it, and with great joy. The question is why? And then, that they can attract new members, who will also pay every month, and you will receive some percentage from their payments.

Almost like in MLM, but with one difference - there is no specific product that you could use. That is, you pay not for the product, but for the opportunity to receive money from those who are below you in structure.

And such an organization is possible precisely because of the "virtuality" of the proposed product. It does not need to be transferred, stored. It may not be used at all. The main thing is to attract all new participants “for themselves”.

How financial pyramids collapse

All these projects always end the same way. One day, people who can be attracted to the pyramid simply run out. And then the members of the "lower layer" stop paying their monthly dues. And why should they pay someone if no one pays them (because there is no one below them)?

Then the penultimate layer stops paying, because the last one does not pay them. And so on, until the pyramid burns out to the very top.

Some pyramids appear and disappear in a couple of weeks. Some last for years. But the main thing is that they always have the same ending. And if you are offered to participate in some kind of "network business" where there is no product, or it is very complex (too innovative for a mere mortal to understand its idea) - most likely you are being lured into a financial pyramid.

Here are some more indirect signs of a financial pyramid:

• Promises that it will not be necessary to sell anything and recruit anyone.
• Mandatory monthly payments.
• The impossibility of personally checking the quality of the goods (or the poor quality of the goods).

In general, it is the quality of the goods that distinguishes the real MLM in the first place. Recommendations are good. And your friend will probably buy something from you once if you advise her. But for her to pay you a second time - here it is already necessary that she really likes the product.

Therefore, pay attention to indirect signs, and do not fall for scammers. And then they feel themselves on the Internet like fish in troubled waters. Is it really possible to do a real network business via the Internet?

Is it possible to do network business via the Internet?

Here it is - the golden dream of any networker. No need to go to any personal meetings, no need to recruit anyone. Stay at home, post links to your product on social networks and sites - collect the cream.

But personally it seems to me (and this is just my personal opinion) that the network business in its original understanding cannot exist on the Internet. There are two main reasons for this:

1. MLM business is a referral business. We recommend the product to our personal friends, and they recommend it to their friends, and they recommend it to their friends. This is how the structure is going. And if we recommend a product to everyone in a row, then this already becomes a regular advertisement.
2. MLM business rests on a quality physical product. That is, you can feel it, try it. And you definitely need to give the buyer the opportunity to "feel" before buying. Accordingly, you can’t get away from personal meetings.

And if you really don’t want to go to personal meetings with anyone, but work via the Internet, then it’s better to do affiliate programs. It's the same as MLM, but you just advertise some product and get a commission on sales.

That is MLM through the Internet is possible. And it is called - "earnings on affiliate programs." Look at my article, and you will understand a lot.

By the way, there are also multi-level partnership programs. That is, there you can also earn from attracting new partners, and not from personal sales. Watch my video on how I make money on affiliate programs (opens in a new tab).

Conclusion

In no way do I want you to get the impression after reading this article that I am against MLM business. In fact, I am a big supporter of people starting to take responsibility for their own income, and trying to provide for themselves by their own efforts, and not relying on "uncle".

And to start an entrepreneurial career, network marketing is a very good option. You will gain experience, fill the first bumps, learn to resist the pressure of the public. The main thing is that it approaches everything with a head, and look at things objectively.

Otherwise, there is a high probability that you will be disappointed in the usual MLM, and instead of using the acquired skills to open your own business, you will wallow in financial pyramids and financial bubbles.

Don't forget to download my book. There I show you the fastest way from zero to the first million on the Internet (squeezed from personal experience for 10 years =)

See you later!

Your Dmitry Novoselov

Network marketing is a business based on partnerships. Its other name is MLM or multi-level marketing. The difference between network marketing and traditional business is significant.

Let's take a closer look at what MLM is. Its essence lies in the fact that the company organizes the turnover by creating a network of partners who perform the bulk of the work. In this case, the people involved in the promotion of goods are at the same time the company's customers, since they make purchases at wholesale (distributor) cost. They then resell the product at a higher price. The company spends less on advertising, its customers take care of selling products to customers.

Percentage of sales - not the only plus when working in MLM? This is, first of all, own business company distributors. Network marketing is beneficial to partners in that they receive a good reward for their work. Thus, for attracting new people to the company, active distributors are paid additional remuneration for turnover from their entire team. Such income is called passive, because, once having invited a person, having registered and trained him, the partner now receives constant deductions from his work. But often the structure of such a leader grows to tens, hundreds, thousands and tens of thousands of people. Income in this case continues to flow to the founder of the structure. Thus, in a few years, any person can secure a comfortable future.

Many people ask the question: “What is an MLM business?” First of all, this is a huge job of promoting products, recruiting new distributors. But the reward for your efforts cannot be equal to the payment for ordinary work. It is in the field of network marketing that a large percentage now concerns not only European countries or America. A huge number of MLM leaders in Russia.

Consider network marketing - what is it, what terms are used in this business? The marketing plan is the rules according to which all accruals to the company's distributors take place. It indicates everything and the conditions under which they are received.

A check is a monetary document with a payment indicated on it. It also indicates the partner to whom the payment is made and other necessary data.

Auto-concept is a term that has become increasingly used in network companies. Particularly active partners have the opportunity to receive a car upon fulfillment of their turnover plan determined by the structure.

What is MLM for most of the Russian population? Many people think that network marketing is a scam, through which especially sassy people want to collect more money in their pocket. In fact, MLM is an opportunity to have a business for people who cannot open their own company. Any network company is absolutely legal. A negative opinion is formed by the fact that distributors promise new partners "mountains of gold". Yes, the opportunity to make money in an MLM company is huge, but people forget that you need to put in a lot of effort first. Moreover, for the first few months, the newcomer will mainly hear refusals, ridicule and unpleasant statements. But if he crosses this line, gains confidence that he will continue on the right path, the opinions of other people will not be important to him. A person will strive for his goal, because he knows that he will succeed in the company. And in the future, people who are now scoffing will simply envy his victories and perseverance.

So what is MLM? This is an opportunity that anyone can take advantage of. Network marketing leads to financial independence, free disposal of your own time. And whether to choose a business in an MLM company or stay in your previous job is the right of every person.

A detailed article about what network marketing is, what the three letters “MLM” mean, what advantages and disadvantages such a business has, how they make money on it, recruit distributors, why this kind of activity is dangerous and why you should not become part of the “pyramid”.

The beginning of the path of network marketing falls on 1945. Its foundations and principles were laid in America by two entrepreneurs William Casselbury and Lee Mitenger. A similar field of activity came to Russia and the CIS in 1990. Since then, millions of people have been involved in it and new network companies have been opened.

Despite the fact that this type of business is widespread, many do not fully understand what network marketing is, what advantages and disadvantages it has, and why it is dangerous. All this will be discussed below.

What is network marketing and how does the abbreviation MLM stand for

Network marketing is a type of business that is based on selling various products and attracting sellers. From each attracted seller, the seller of the goods receives income. The seller, in turn, attracts new sellers and already has his own percentage of profit from them.

If you look at the whole structure of such a business, it will have the shape of a pyramid. And the one who is at its top earns the most.

The abbreviation MLM stands for Multi Level Marketing, which means multi-level marketing. In the common people, this is called a "pyramid".

In network marketing, most often they use products that cannot be found in regular stores. These can be bioadditives, kitchen utensils, cosmetics, etc. A vivid example of this is the well-known Oriflame or Faberlic - the products of these brands cannot be found on store shelves. Moreover, 90% of goods are produced outside the CIS.

At first glance, network marketing may seem rather in a simple way earning money. Yes, some millionaires and billionaires claim that it is on MLM that they made their fortunes. However, most people, not only in Russia, the CIS, but also in the world, avoid this dubious activity. And there are reasons for that. But they will be discussed below. To begin with, it is better to consider all the positive and negative aspects of network marketing.

The light and dark side of network marketing

First, it's worth demonstrating the benefits of network marketing to understand why it still exists.

Advantages of MLM

1. Anyone can get into network marketing. This does not require experience, special education, business registration and other points necessary for a traditional business.
2. Network marketing can become an additional source of income - a small one, but still. This is a good option for students or moms on maternity leave.
3. Unlimited earnings, which people sitting at the top of the "pyramid" talk about, really exist. But few can make good money with network marketing - even a few. To get decent money, you need to be a purposeful person who knows how to find an approach to people, and have a lot of free time in your pocket.
4. Financial freedom is also present here. It lies in the fact that the seller has no bosses, and the profit depends only on him. Freedom also means the absence of a work schedule - you can work when you want. However, financial freedom should not be taken literally. Rather, it consists here in not depending on the wallet of parents, relatives or husband. And this does not guarantee the complete absence of problems with money.
5. Network marketing gives you the opportunity to try yourself as an entrepreneur and open your own business, which you need to independently promote. Here you can get several useful skills, such as, for example, the ability to communicate with different people and get along with them business relationship. In the future, if you manage to create really profitable business in another area, then all the skills acquired in MLM will come in handy.
6. Team cohesion is the only virtue of network marketing. Indeed, the network companies team is friendly and responsive. Each new member of this team is assigned a teacher who willingly helps the newcomer (naturally for his own benefit). Network companies regularly hold various master classes, seminars and trainings, which again unites people who are passionate about one thing.

All of these benefits are present in network marketing, but some of them should not be taken literally, such as financial freedom. Yachts, villas, expensive cars and living abroad in a penthouse are definitely not to be expected.

Now about the dark side of the "pyramid".

Pitfalls of network marketing

1. Lack of stability is one of the main disadvantages of MLM. It is expressed in the volatility of income. Such an occupation can become an income, but not a permanent field of activity. Although, again, purposeful people are still able to achieve good results. But this will require a lot of time, money and effort that can be invested in the implementation of more.
2. There is a very big psychological load in MLM. Most people contacted by sellers react negatively to frankly selling something. Clients are especially negative about obsession. Therefore, sellers of network companies often encounter inadequate people. Moral difficulties also arise due to the fact that after some time the seller himself will teach someone to sell, and iron restraint is needed here, since there are people who quickly grasp everything, and there are those who are not inclined to quickly absorb all the information and apply it correctly in practice.
3. Whatever the mentors say, network marketing requires a cash investment from the beginner. He must buy goods with his own money, and then sell them at other prices, having a percentage of this. Accordingly, there is a risk of losing money. That is, a person bought a product, but no one bought it from him, and he also does not need it. Financial losses can be from 1,000 rubles. up to more than 50,000 rubles.
4. In network marketing, there is responsibility for others. If the seller attracted a person to the team, then he is responsible for him, is obliged to help him and solve any working issues. And not everyone is able to be a mentor and bear responsibility for someone.

These are not all the pitfalls of MLM. After all, there are a number of risks, because of which most people do not want to join the ranks of network companies. But more on that later.

Now it is worth considering in detail how to earn money. That is, how and what people earn in network marketing.

How to make money on network marketing: the principle of building a business

The whole point of building a business in network marketing is to create a network of distributors (sellers) of goods. And the more of them in the pyramid, the better.

For example, a person started working in a network company. He was attracted to it by a specific person who is assigned to him as a mentor. A person is taught everything that needs to be known, he buys a product and proceeds to sell it. At the same time, he is in parallel looking for new distributors, whom he will train, and receive from them his percentage and additional bonuses (incentives).

New sellers are attracted quite simply. A person is properly “treated”, told about the prospects, about how much you can earn, and about the fact that he will have huge discounts on all goods and he will be entitled to free gifts. That is, they begin to flavor a person with a bright future, their own dignity, and additionally play on a simple human feeling of greed.

Future sellers are sold not only the product itself, but also images of a bright and rich future. With the help of such techniques, gullible and impressive people are drawn into the “network”. That is, the share of psychology in this business is also present.

From the above methods of attracting new members of the "pyramid", it becomes clear why the common people call network marketing a sect. There are some significant similarities here.

In principle, it is extremely difficult to call MLM a business, in its usual sense. Since everything here is built on deception and illusions. Only those who sit at the very top of the main pyramid make money in network marketing, while the lower classes work hard and do not receive the promised wealth.

The main task of network companies is to sell their products or goods quickly and in large quantities. And how this will happen, they are not at all interested. Only distributors are interested here - the more you sell and attract, the more you earn.

Everyone can judge the honesty of such a “business” or earnings independently. But a number of facts, not in favor of network marketing, remain undeniable.

Now the time has come to consider all the existing risks and dangers that are fraught with "pyramids".

What is the danger of network marketing

Scientists have long conducted a number of studies that prove that network marketing is no different from a totalitarian sect. They recruit in MLM in the same way as in a sect. The potential salesperson is cleverly brainwashed. Moreover, according to a specific technique, which provides for a certain fetish of one's own chosenness, missionary work (just like in a sect), elitism and significance.

After a person has been “caressed”, they begin to tell him about a carefree future and complete financial independence. Do not forget to mention the "freebie" that a person regularly relies on. All this is fed into the brain of a potential distributor in the right portions, and in the end it is simply squeezed that it is no longer possible to refuse the “tempting” offer.

Seminars of network companies are a completely different story. They are visited by eternally smiling people who are happy with everything around and dream of the immense wealth that MLM will bring them. And the speakers at the seminars only stir up these feelings in people.

The newcomer was recruited, now he needs to sell the goods. Naturally, the newcomer agrees and pays for his first bulk purchase in the hope of a quick sale and easy money. But as a result, everything is not so simple. Not as promised "teacher".

Naturally, surrounded by the newly minted "networker" are sane people - relatives and friends. They begin to explain to him that this is not a business at all, but only a scam and he will not earn anything on this. And here quarrels and loss of friends begin. A person is left practically alone with his "correct" opinion.

Regardless of the success of sales, a person begins to invest money in his business - to buy a new product. At the same time, he drags himself into debt.

The danger of such earnings lies in the fact that beginners with a clouded brain are unable to think clearly. For example, they do not understand that before entering any market, it is necessary to analyze it and understand whether consumers need the offered product at all. And if the market does not need this product, then it is extremely difficult to sell it.

As a result, it turns out that the money is spent, the goods lie and no one needs them, there are already debts, but there is nothing to pay them back, since no one will return the money for the goods purchased in bulk.

Moreover, even if the goods are more or less sold, then such an occupation is illegal. entrepreneurial activity. And at one fine moment, a person comes to the attention of the tax inspectorate. As a result - punishment with serious fines. And for tax evasion now you can get a real term.

And, of course, the main danger of network marketing is that it drags people into a swamp. Then it is extremely difficult to get out of it.

It can be seen from the above information that MLM is indeed dangerous. Making money is hard, but losing money is easy. Network marketing is really a sect, but not in its traditional form.

In conclusion, it is worth drawing some conclusions.

You can really make money with network marketing. But how big is this income? It is impossible to call MLM a business - rather, extra money. The fact that such a field of activity is dangerous is a fact. Whether it is worth trying yourself in such a “pyramid” is undesirable, but this is a personal matter for everyone.