Rating of MLM companies in the world. Network marketing - how to make money? The essence of network marketing
I provided statistics on search queries on the Internet using the Yandex Wordstat service. Much water has flown under the bridge since that time. How are things going four years later, in April 2016, I wonder?
This time I slightly changed the rating conditions. Last time I analyzed the popularity of companies based on people’s interest in them from the point of view of cooperation. Therefore, I studied mainly search queries using the key phrase “” when it came to Faberlic statistics.
This year, I decided to analyze search statistics for higher-frequency queries and used only the company name in the query.
For those who do not quite understand what the Yandex Wordstat service shows, I’ll explain a little.
For example, you are interested in how many people enter queries into Yandex with the word Faberlic. Type the required keyword in the statistics line and get the number of impressions with this word. In the picture we see that over the last 30 days there have been 947,453 requests in Yandex containing “Faberlic”. The Yandex statistics service takes into account all requests with the word Faberlic: “how to become a Faberlic consultant”, and “Faberlic catalog”, and “”, and many others.
Thus, it turns out that the higher the numbers in statistics on keyword or phrase, that more people are interested in this phrase on the Internet. Accordingly, we can conclude that the more people on the Internet are interested in the Network Company, the more popular it is among the population. Of course, for a more qualitative analysis it would be good to have data on turnover, dynamics, product range, know the average bill, the number of consultants and consumers. But unfortunately, network marketing companies in Russia do not publicly post such data. Therefore, we will operate only with those numbers that are available to us. In addition, these figures quite realistically reflect brand recognition and popular love.
As a result of statistical research, the following results emerged:
The table shows only companies that received more than 100 thousand search queries per month in Yandex. Pay attention to the significant gap between the top three.
Now let’s compare how the statistics for the key phrase “registration with a company” have changed.
In this table, I was primarily interested not in the ratio of numbers between companies, but in the dynamics. She's impressive. If in 2012 only 824 people were interested in registering with Faberlic, then in 2016 there were already 3,643 people. An increase of 324%. And this applies to almost all leading companies in the rating. Thus, we can conclude: more and more people use the Internet to shop and obtain the necessary information.
Hello, dear readers of the online financial magazine “RichPro.ru”! The topic of today's material is network marketing (MLM): what it is, which MLM companies in Russia have a high rating, how network business works, and so on.
After all, for many centuries the model of distribution of goods and services “ manufacturer – large wholesale – small wholesale – retail – buyer"was the only possible one.
ButV30's years XX century The product distribution system was born in the USA and subsequently developed. manufacturer – distributor — buyer».
At the same time, the activities of MLM companies for many years have been surrounded by various rumors, comparisons with financial pyramids and ambiguous public opinion. Based on this, for an objective look at this type business, you should consider in more detail all aspects and nuances of network mlm marketing.
So, from this article you will learn:
- What is MLM - the history of the network business industry;
- The main advantages and disadvantages of network marketing;
- Which MLM business network companies are the most popular (ranking by sales volume in the world).
After reading this article, you will decide for yourself whether it is worth engaging in network multi-level marketing, find out which companies are better to choose and why, and read reviews from “experienced” mlm marketers.
What is network marketing and how does it work, what is the basis for the scheme of cooperation with MLM business, which MLM companies have high ratings and much more, read below in the article
Network marketing is a system for selling goods and services from manufacturer to buyer, which is carried out through recommendations from person to person.
The essence of MLM business is in non-store retailing, in which the distributor independently establishes contact, advertises and sells the product to a potential buyer.
In addition to earnings from retail sales, the sales agent offers consumers, for a percentage of sales established by the company, find new buyers , which “attract” new clients under similar conditions. As a result, a multi-level network is formed.
Network Marketing Objectives
- Product pricing optimization. Before 70% The retail price of everyday goods consists of the costs of the distribution network and advertising. Changing the distribution structure allows you to reduce costs.
- Providing customers with high-quality, authentic products. With traditional product promotion, there are obvious prerequisites for the appearance of counterfeits on the market, but in the direct sales method they are absent: the product is not as widely known as analogues from the traditional market, the manufacturer, distributor and buyer are not interested in the appearance of counterfeit products.
- Improving the product delivery system. Manufacturer’s control over the logistics and storage of goods allows us to provide the consumer with a product of proper quality and in optimal timing(read the article at the link).
- Improving the distribution of profits of the manufacturing company. Reducing costs allows you to direct financial resources to incentive programs for sales agents, various bonuses and incentives, as well as improve product quality.
Below we will consider the principle of network marketing.
2. How network business (marketing) works - the operating principle of MLM companies 🗺
Multi-level marketing is the interaction of a manufacturer, an entrepreneur and a buyer.
How multi-level network marketing works - 3 sides of profitable cooperation with MLM
2.1. Network marketing from an MLM company
The MLM company produces products at its own factories. It also develops a marketing and sales plan, based on which revenue from product sales is distributed.
As a rule, a business plan motivates distributors in several areas:
- a) consume the products themselves;
- b) sell goods to customers;
- c) create a network of entrepreneurs.
Manufacturers organize delivery of products to their own warehouses in different countries and cities, and also ensure that distributors receive goods at home.
For proper efficiency, entrepreneurs receive everything necessary materials on products, master classes and seminars are held aimed at developing a variety of skills.
2.2. Network marketing from the consumer side
A distinctive feature of the direct sales method is the creation of convenient conditions for the buyer:
- Delivery. Entrepreneurs, as a rule, deliver goods to their homes.
- Service. Before purchasing, the buyer receives all the necessary information about the product. Also during operation it is possible to consult with the distributor.
- Quality guarantees. Most MLM companies guarantee the quality of their products, with the possibility of a full refund if the client is dissatisfied.
2.3. Network Marketing from the Entrepreneur's Side
Multi-level marketing - a very attractive type of activity for people who do not have large initial capital and business experience.
An entrepreneur has the opportunity to independently plan his employment based on his capabilities. Students, housewives and retirees are most involved in this type of business.
Some terms and definitions used in the network marketing business:
Distributor - a sales agent who has an agreement with a direct sales company and receives a remuneration for product sales, as well as a percentage of commissions for the turnover of the network created by this entrepreneur.
Sponsor (partner) of the 1st level – a sales agent who introduced the consumer to the possibilities of this business and helped to conclude an agreement with a network marketing company.
Sponsorship (affiliate) line – a list of entrepreneurs directly interested in the success of the distributor’s activities, which includes a 1st level partner, his sponsor, etc.
Side Entrepreneurs – a set of distributors that do not belong to either the sales agent’s subnetwork or the sponsorship line.
Bottom line partners – a list of agents included in the distributor’s network.
Organization width — a set of partners of the 1st bottom line.
Depth of organization — all agents of the 2nd and subsequent lower lines in the distributor’s subnet.
Active income – monetary reward for work performed by a person. Income depends only on the quantity and quality of labor invested.
Passive income- profit received by a businessman constantly, for one-time work performed. To receive this income prerequisite is the presence of assets, which can be real estate, bank deposits, shares, etc.
8. Advantages and disadvantages of network marketing - an overview of the main disadvantages and advantages of the MLM business 📃
MLM business has a number of advantages and disadvantages. The assessment of this type of activity in the media, among reputable businessmen and politicians varies greatly.
Advantages of MLM business and its advantages
Let's consider the main ones:
- Low barrier to entry into the market. When opening any business, an entrepreneur evaluates the resources he needs to start in the market. In a direct sales business, you need little money to start your own business. There are also no costs for renting premises, warehouses and other fixed costs.
- Possibility of doing business on the Internet. Since the end of the twentieth century, more and more consumers, manufacturers, and businessmen have been making purchase and sale transactions on the World Wide Web. Doing business online is an undeniable advantage of business.
- Product quality. Thanks to the peculiarities of MLM marketing plans, companies have the opportunity to allocate large sums for the production of quality products compared to competitors who use traditional marketing to promote goods.
- Training programs. To develop the skills of sales agents, direct sales companies introduce training programs that include books, CDs, seminars and a variety of trainings and presentations. This information allows you to develop not only in sales, but also contributes to personal growth, improvement family relations etc.
- Part-time employment. The opportunity to work in your free time and at the same time have income from your main activity.
- affiliate program. The sponsorship (affiliate) line is interested in the success of the distributor. More experienced partners support, help and advise newcomers in every possible way. Relationships are built on equal terms, regardless of income.
As you can see, there are significant advantages for which you should start this business. We also suggest you read the article “”, perhaps you will find useful information there.
Disadvantages and disadvantages of network marketing
Let us now consider the main disadvantages:
- Reputation. Due to the lack of restrictions and selection of agents, sometimes new entrepreneurs conduct business incompetently: they impose products and the business itself, give false information and thereby compromise this type of activity in every possible way.
- High likelihood of deterioration in relationships with friends and family. The majority of the population prefers to work for hire. If you run a business without an office, warehouse or employees, friends and relatives have a negative attitude towards this business.
- Slow or no business growth. As a rule, an entrepreneur receives the first significant results within a period of six months to two years, subject to systematic work and training. A very large number of distributors have not been successful in this business.
- The vast majority of proposals for cooperation are rejected. With active participation in building a business 80 — 95% of the work does not bring results.
- Only a few entrepreneurs achieve significant success. On the path to success, a sales agent encounters many difficulties, which require perseverance, education and self-improvement to overcome. Not everyone is ready to overcome all possible obstacles.
Above we presented the main disadvantages and disadvantages of cooperation with MLM companies.
9. Rating of network companies in Russia - list of the most popular MLM companies 📑
The first mentions of network marketing in Russia are dated 90s of the twentieth century and are associated with the company " Herbalife" The company's products were rapidly distributed throughout the country. Tempted by the possibilities of new business, thousands of people decided to cooperate with this organization. Expecting quick success many distributors suffered collapse , attributing to the fact that the activities of this company are illegal .
At the same time, many financial pyramids have appeared in our country that have an external resemblance to MLM companies. All this affected the reputation of this type of activity.
Despite these factors, the direct sales business in Russia has grown significantly in the coming decades.
By the beginning of the new millennium, all the global leaders in network marketing were present on the Russian market.
In this table you can consider the most popular network companies in Russia.
| No. | Company name | Brand country | Products | MLM market share in Russia (%) | Global sales volume, $ billion |
| 1. | Amway | USA | Wide range of products: household goods, cosmetics, vitamins, dishes, water filters. | 8,1 | 9,5 |
| 2. | Avon | USA | Inexpensive cosmetics for the middle class | 28,8 | 6,16 |
| 3. | Oriflame | Sweden | Wide range of products: from cosmetics to dietary foods | 27,4 | 1,35 |
| 4. | Mary Kay | USA | Cosmetics | 4,9 | 3,7 |
| 5. | Faberlic | Russia | Oxygen cosmetics made from natural ingredients | 4,8 | no data |
| 6. | Herbalife | USA | A variety of products for balanced nutrition, weight control and appearance care | 3,0 | 4,47 |
The table shows that the world leader in this industry is the company “ Amway"in Russia it ranks only third in terms of sales.
Corporations have the largest market share " Avon" And " Oriflame».
Is it possible to make money in MLM, what do you need to make money in network marketing?
10. Is it easy to make money in network marketing, and what is needed for this 💰
Due to its advantages, network marketing is a fairly popular activity.
According to the Russian Direct Selling Association based on the results of the last five years 6% population was employed in business based on multi-level marketing.
Distributors' earnings vary significantly, which does not depend on the level of education, profession, number of children, marital status and other factors.
A small percentage of sales agents achieve results quickly and easily. This is because success requires knowledge and experience.
To achieve significant results in business, you should follow the following tips:
A dream is the main factor that allows an entrepreneur to overcome difficulties and achieve success. To maintain motivation, you should “break the path to your dream” into intermediate goals.
A sales agent must realize that the result of his activities depends only on his efforts and dedication to the business.
Tip 3. Learn and develop
Most network marketing companies have training programs. They include business literature, CDs with recordings of speeches by business leaders, and training seminars are also periodically organized.
To be effective, you should write a list of your acquaintances in a notebook and update it periodically.
Tip 5. Present business and product
Based on the list, you should “get in touch” with potential partners or clients. The number of presentations influences the final result.
Tip 6. Consult sponsorship line
It's better to learn from other people's mistakes. Top line partners have more experience and are always ready to help the distributor, as they are personally interested in the success of the entrepreneur.
Tip 7. Build a business based on the developed strategy
A stable, long-term result can be achieved only if there is a balanced development of the “width” and “depth” of the structure.
Tip 8. Repeat the actions and methods of achieving success used by higher-level partners.
It is also worth noting that downline partners also observe the distributor and will repeat his actions.
11. FAQ - answers to frequently asked questions
Before engaging in multi-level marketing, potential distributors have a number of doubts and questions.
Question No. 1.
Should a beginner start? It's worth it, but you shouldn't expect quick success. No risk of being in the red, small initial investments, high quality educational programs , help from partners –.
factors that can influence success
When starting cooperation with a “network” company, sales agents strive to do so as quickly as possible. The activity should begin with simple retail sales.
Buying a product at a wholesale price and selling at a retail price - distributor makes money . First of all, products should be offered friends, relatives and acquaintances, since they will be more loyal to an inexperienced seller, and in the future they will be able to become regular consumers or business partners.
Question No. 3.
Network Marketing: Is it Legal?
The direct sales business is a legal activity, which is confirmed by the very fact of the existence and development of these companies for decades. Many illegal structures.
disguise their activities under the guise of network marketing companies Important! The potential client is asked to deposit an initial fee
, pay for mandatory training and purchase a minimum quantity of goods. This is accompanied by the absence of receipts and invoices confirming the purchase of products or the provision of services. Also the consumer should be wary of poor product quality
or lack thereof. Network companies offer products good quality
and do not require significant financial investments to open their business.
Question No. 4.
What reviews does network marketing have - is it possible to really make money from it?
There are many different reviews about network marketing on the Internet. Here are some of them: Review 1."At first Oriflame 2000s
a colleague at work suggested trying the company’s products “
" I really liked the product and became a regular customer. A couple of months later, she invited me to become her partner in business and told me how to make money. At the first stage, I managed to have a fairly large income, but then everything changed. I am raising two children alone, and as my network grew (at that time I had 34 people on my team), it became increasingly difficult for me to combine household chores and business. As a result, income began to decrease, and at a certain point 12 people “left” my network. Later, I decided to switch to the classic business. In order to have great success in this direction, you need a lot Oriflame ambition, determination and activity
. One girl from my structure achieved great success in "»
" I don’t regret anything, the knowledge and experience gained at that time allow me to now successfully do my business. Olga, Samara Faberlic» fellow students discussed everywhere. I've never been a fan of sales, but I still decided to give it a try.
Over time, I realized that it’s hard to make money in this business; the bulk of the income from your turnover goes to your higher-ranking partners. To achieve success, you must be able to sell products.
I do not advise anyone to engage in network marketing.
Alina, Rostov»
Review 3." IN 2009 I had to close my own business and ended up owing money to the banks $40,000, of which 2 000 it was necessary to pay every month. I urgently needed to get out of this situation. I was looking for a solution, I considered various options earnings.
Unexpectedly, an old friend, whom he had not seen for many years, approached me with an offer to do business in collaboration with the company “ Amway" At the presentation, he told me about the possibility of decent earnings in a year or two. But I was told as quickly as possible that I was asked to focus on personal sales of expensive products that have a significant margin. So I started in business by selling water filters and cookware sets.
I have enough wealthy friends and, to get out of my situation, I had to actively promote the products. During my first year in network marketing, I spent about 2-3 meetings with clients, and on weekends - 6-7. The result was not long in coming - I paid off my debts and, without actively “attracting” partners, achieved 9 – 12 % levels of achievement.
Next, I studied the company’s marketing plan in more detail and began to more actively develop my own network of distributors. On this moment I'm on the level Platinum Independent Entrepreneur.
I agree that making money in this business is not easy, but if you have the motivation, then anything is possible.
Andrey, Peter»
Question No. 5.
How to distinguish network marketing (MLM business) from a financial pyramid?
Most conduct their illegal activities under the guise of direct sales companies. The table shows comparative characteristics
| these organizations. | Comparison criteria | Network marketing |
| 1. Financial Pyramide | Initial investment Typically a small initial investment. For this money, the distributor receives “tools” for his activities:, catalogs information about the company, product and detailed description of the business plan . Many companies, with a certain volume of initial purchases, provide these materials . | for free Impressive start-up investment from 100 to 6,000 dollars |
| 2.. From this money “bonuses” are paid to higher “agents” of the pyramid. | All activities are based on the sale of products. The product is of high quality and is in significant demand in the market. | The product is unavailable or has little value to consumers. |
| 3.Priorities in the organization's activities | Receiving profit from the sale of products and its fair distribution between distributors and the manufacturing company. | Attracting new participants and distributing profits from their contributions between higher-level “distributors” and the organizers of the pyramid. The emphasis in activities is on making quick money. |
| 4. Paperwork | Registration of depositing money in a legal way: purchase support with checks, invoices. Drawing up an agreement between the company and the sales agent. | Lack of documents or their improper execution. |
| 5.Distributor motivation | The business plan is based on promoting the manufacturer’s products to the market and corresponding remuneration for sales agents. | The plan only involves attracting new “agents”. |
Question No. 6.
How to choose an MLM company to start?
Beginners who consider the direct sales business to be a suitable activity are faced with the question of choosing an organization for cooperation.
- For an optimal solution, a number of aspects should be taken into account: Reputation and age of the company.
- It is better to choose an organization with a good reputation and significant experience in this field.
- Products. The basis of any trade is the product. Its quality will directly affect the result. It is also worth paying attention to the features of the product. It is important that it ends after some time, and clients turn to the sales agent again. The diversity of the product range is also a significant factor when choosing a company.
- Tutorial. The education system has a significant impact on business success.
- Availability of the company's business on the Internet. Not being online significantly reduces opportunities for business growth. Business plan. It is important to evaluate the company's marketing and sales plan against the criterion of fair distribution of the organization's profits. You should also find out if there are restrictions. The best view».
business plan is "
multi-stage plan with compartment Question No. 7..
I want to try myself in network marketing at Oriflame, Faberlic, Amway - what do I need for this?
12. Conclusion + video on the topic 🎥
In recent decades, Russia has been developing rapidly different methods product promotion, one of which is network marketing. Despite its controversial reputation, this method trade has become convenient and popular among customers.
Possessing thorough information about what constitutes direct sales business , the consumer can accept optimal solution about its use - to access quality goods that are not available in retail stores, earn additional income or develop your own online business with the prospect of significant income.
In conclusion, we also suggest watching an interesting video about online business:
Wow, this has turned into the most popular MLM article on the Internet, with over 1 million views!
Here are the top 25 companies according to Business For Home based on trends and your ability to make money in 2017:
# 25. Empower Network
Back in 2013, co-founders Dave Wood and Dave Sharp looked like Tupac. Empower Network had a cult following and their message was unapologetic: "Don't be a damn wussy and buy all the products."
Somewhere along the way they stopped updating their original digital products and the vision was lost.
These days, you can hop on a random Empower Network webinar and still see Dave Wood spitting knowledge from his mansion in Costa Rica. All the original leaders are gone except Lawrence Tam and Tracy Walker, but Dave Wood is never reckoned with.
# 24. World Ventures
World Ventures makes the list to make network marketing look "fun." The vacation membership company is targeting millennials with a slick campaign that shows people posting travel photos with the captions, "You should be here."
No other MLM has come close to nailing the junior market minus Wake Up Now and Vemma, both of which left in 2015. May be, bad sign? However, you would think that more MLMs would catch on to Instagram-focused campaigns. Calm or not, it seems to be working.
# 23. Wealthy Affiliate
Ask any wealthy affiliate member if they are an MLM and they will probably scold you.
While not technically an MLM, Wealthy Affiliate offers hosting and a robust digital product line that compares itself to other MLM digital product companies (see Digital Altitude, Tecademics, MOBE, MLSP, Empower Network).
Give them credit though... they are still one of the largest digital communities in 2017.
# 22. Nerium
Nerium slipped.
It seemed like a nasty lawsuit was dividing the company (1), but they were still hanging around as one of the best skin care options in network marketing.
They have badges to prove their worth: Inc. 500, DSA membership and some sponsorships.
# 21. Usana
Usana makes the list by pure numbers ($918 million in revenue in 2015) (2).
Their forecast doesn't look very good, but they don't tank.
However, they have been voted one of the "50 Best Places to Work" and they have collaborated with the controversial but iconic Dr.Oz. Think about what you like about Dr.Oz, but it's actually a humble endorsement in network marketing.
#20. Cosmetics Mary Kay
I know, go to the fifty-fifty-year-old auntie right now. For half a century, Mary Kay has dominated the beauty world, and they are still considered visionaries. What other 50-year-old beauty business won Best Website and Best Facebook, Pinterest and YouTube? (3)
And they don't just "hang on", either.
They sold $4 billion in 2014 (4) and their worldwide sales topped the 3.5 million mark. They remain one of the largest direct sellers of skincare and cosmetics products, no small win for this cutthroat industry driven by fickle consumers.
# 19. Nu Skin
Where there are Mary Kay and Amway, Nu's skin easily turns the club into a billion dollars. With annual sales of over $2 billion, they are top list candidates and they are a clear network of network marketing veterans.
However, they are not as hot as they were 5 years ago, and it is hard to say whether they will be on this list in 5 years. They donate a lot of money to charity, but they've had their share of scandal and affairs, so it's hard to say what their image is these days.
One thing I know is that I have never met anyone under 30 who promotes Nu Skin and I lived down the street from them for 5 years.
# 18. Avon
The only MLM that can rival Amway's fortune, fame and size is Avon. With over 6 billion in revenue in 2015 and worldwide recognition, they are already in the MLM hall of fame.
Although they slide. Revenue is falling in North America and their sales force is being cut. Revenue declined 19% in 2013 and 7% in Mexico. Skip forward to July 2015 and revenue still continues to decline, with a 17% drop (5). Analysts blame Avon for failing to maintain a strong identity for its products as well as a strong dollar. Lesson: Always recreate yourself.
# 17. Arbonne
With three decades of selling skin care products, Arbonne will soon be up there with Mary Kay in terms of ancient relics that still press lotions.
A huge success here, with annual sales exceeding $502 million. However, as with Nu Skin, trends will show that they are past their glory days.
Their science is tight, management is blue chip, and products are constantly updated and updated for new generations. Arbonne represents the best of what other MLM sciences should hope to be. Lock for cosmetic companies.
#16. Herbalife
Rest of the world: Hello, how are you?
Herbalife: NOTHING TO SEE HERE.
Herbalife is massive. Top 5 income? All day. Top 5 in brand awareness? Probably top 3.
However, Herbalife has been universally criticized by the media (their fault or not? Doesn't matter, still hurts them) and have become almost synonymous with "pyramid scheme".
Good news: They recently settled with the FTC and agreed to pay $200 million to former distributors. Probably not a good look, but that didn't stop the students from continuing to stay with them.
# 15. Beachbody
You've probably heard of P90X and Insanity training, right? These gloriously sweaty workout DVDs are being sold through network marketing thanks to BeachBody.
Beachbody is honored for its high revenue and massive acceptance of its products. Both are testaments to what MLMs can be: a Great Products-First-And-The-Money-Will-Follow company.
# 14. Scentsy
Lifeless, scented candles explode, if your big sister hasn't already told you so. The product is innovative. Flameless candles. It's simple: people love their products.
Idaho-based Meridian competes with doTERRA for the top word-of-mouth marketing award (and perhaps most likely for the spam award from your Facebook timeline), but their annual sales are $537 million. They are one of the few companies I would bet on in about 15 years.
# 13. Pampered Chef
Will high-tech kitchen gadgets get hot? Chef's Pampered Products were made to be sold at house parties, which is why this company is still putting the numbers together.
Unofficial Assistant Chef for Recruitment:
Step 1: Invite your friends to come and watch Scandal
Step 2: Ask them to watch the presentation later and pull out their credit cards
Just kidding, I guess. They were super hot, but they cooled down. The Berkshire-Hathaway facility was recently profiled for lower earnings and job layoffs.
# 12. Forever Living
Forever Living probably deserves a spot because of its long-term commitment to the aloe vera plant and products made from it. Aloe vera is hot right now.
Rarely do you see a plant rise steadily over the years. It screams longevity over hundreds of other full service companies. Founded in 1978, they have made the Forbes 400, Inc. 500 and $2.6 billion in revenue.
Further Reading: The ONE Most Effective Way to Kill Your Job (Non-MLM)
# 11. Isagenix
Search trends show Isagenix neck and neck with Advocare, so they're buzzing nicely these days.
They are still one of the hottest network marketing companies out there, although I'm not sure what sets them apart from all the other nutri-MLMs out there. They don't have sponsors like Advocare, but maybe that could be used to say they pay distributors more?
Overwhelmingly positive product reviews on Amazon, a solid sales pipeline, and strong sales make this a top 15 lock for 2017.
# 10. Amway
If all that mattered were revenue numbers, Amway was #1 or #2 (behind Avon).
What a curious move they had. Amway is so universally accepted that it has become a household word and a joke ponzi scheme at the same time. It's hard to get away with it. However, you can't deny winning numbers like 9.5 billion dollars (8) and 3 million distributors. Or call NBA arena rights.
Brand potential for Amway? Aaron Gordon is blossoming on poor men Blake Griffen, and the Amway Center is getting more runs on TNT and ESPN. That is all I have.
# 9. Global Wor(l)d Network
Wor(l)d Global Network is burning hot and they are pushing the wearable tech trend. I'm not crazy, but this is really great.
I don't know what will happen to them in 5 years, but they are hot right now. Their latest release is a health tracking and disease management bracelet called .
They've also generated $157 million in revenue, and they're just getting started. This is an innovation, these technologies will be used in all smartphones in 5 years.
# 8. Ambit Energy
Ambit has amazed the Inc 5000 for 3 years in a row and they seem to continue to trend. They promise lower fixed prices for natural gas and electrical services, so they're decidedly less sexy than most of the network companies on this list. And that's probably why they thrive. No glitz and glamour, just practical savings.
# 7. Young Living
The essential oils are still hot. And YL was the first in this category. Used for healing, cleansing and beauty, essential oils are natural, have few side effects, and have hundreds of home applications.
Their lavender fields are famous and they control every aspect of production from planting to bottling, so quality is a big deal with this line. Founder Gary Young is known for setting quality standards for the entire industry essential oils.
So, what's not to like? Let's just say it rhymes with "Moterra."
# 6. Advocare
Last year's #1 ranked network marketing company had a bit of bad PR and slipped a bit.
A recent ESPN report (10) was a borderline hit, covering mostly the negative aspects of network marketing, leaving the reader with ex-distributor quotes like this: "You're catching people in a bad place who have hope that this might be a way for them to pay for their credit card and their children, and you are exploiting them."
Oh. However, the Brees are still rolling with em and they have the endorsements, products (Spark), programs (24 day challenge) and revenue to be 10 locks.
# 5. Tecademics
"Tec-a-who?", you think.
Chris Record's new venture is an "online internet marketing education" that is still in the works, so it's the calm before the storm. Students can attend a real classroom setting (I believe in Scottsdale) or learn online.
The fact is that to date the dude has not launched a single venture, and he already has a team staffed with major league Internet marketing. Yes, this ranking is based on speculation, but Tecademics will be on my short list of MLMs to consider in 2017.
The concept makes too much sense. I'm just saying.
# 4. Digital Altitude
What happens when you create a program individual development e-learning focused on digital business for aspiring entrepreneurs? And encourage affiliates to spend up to $25K on programs, masterminds and digital retreats?
Correct Answer: A bunch of internet marketers got rich
Digital Altitude isn't just a sexy game because their training teaches distributors how to promote products, allowing them to automate and scale past a list of family and friends or approach the well-dressed people at Wal-Mart.
That's why it's hot and will likely stay hot for a while.
# 3. Younique
In early 2017, 60% of Younique was sold to Coty for $600 million (11), bringing their valuation close to $1 billion.
Clap for them.
Good news for distributors: Derek Maxfield and management are still on track, and the cosmetics product management company is in in social networks is still thriving with their 19 lipsticks and 39 moisturizers.
Younique has exploded in Utah in the last few years, driving the market for beauty home parties for women who want initiation. Powerful messaging that works.
# 2. Jeunesse
Another winning product line here. Jeunesse products work super, super well. Even MLM cynics should show some love for a product that gets rid of wrinkles:
People will always want to look younger, and instantly ageless cream continues to excite.
They were the #1 fastest growing direct selling association on the Inc 500 and poached by Alex Morton in the months before Vemma left in 2015. Savage AF?
A trend and a product that works really, really well? This is a rare occurrence in network marketing.
# 1. doTERRA
A recent third party study (13) found that 9 out of 10 people living in the Eastern United States have never heard of doTERRA.
Translation: they're poised for exponential growth.
DoTERRA has had a cult following in Utah for some time (33% of consumers in the Rocky Mountain region), but now people all over the world are becoming strangely passionate about using essential oils.
Capitalizing on millennials who love to go "all natural," doTERRA is buzzing from church parking lots to your married, twenty Instagram sisters. After only five years in business, they landed a $60 million position at their headquarters in Pleasant Grove, Utah.
Young Living's doTERRA dopper started much later (2008) and manages to have momentum.
Result: they are the clear leader in the essential oils market (a trending, marked niche), making doTERRA my #1 MLM pick of 2017.
Summary:
Look, honestly, I applaud anyone for looking at network marketing companies because it shows that you are trying to do something about your current financial situation.
It's hard to knock.
Now, should you join any of the above companies? Short story: MLM is a job for many, but not for most.
Network marketing companies generally have good intentions, but the industry is flawed.
Lemme explains some of them:
1) Low barrier to entry
Just: companies choose the multi-level marketing model because MLM companies are cheaper to start and cost less to operate. By outsourcing this work to a distributor, the company saves $1,200 per employee annually.
Now you have thousands of trained marketers supporting the hot trend and ultimately becoming the “middlemen.”
2) Artificial supply and demand
Simple: network marketing companies get into trouble when most of their sales come from new recruits, not from outside customers.
The FTC continues to go and monitor these companies (Herbalife, Vemma). If you need to buy a bunch of product to join an MLM, that's a problem. This is called production hype.
Think about it: Why else are so many MLM companies mysteriously re-launching or re-launching? This is all about new registrations.
Obviously, there are always exceptions, but these disadvantages apply to most network marketing companies.
Ask yourself an uncomfortable question:
Am I pretending to love these overpriced products to hide the truth, meaning I'm selling an opportunity to make money? Moreover, statistics say that this is almost always the case!
Too honest?
And yet there are wayyyyyyyyyy better ways to quit your day job and live the good life.
To make it easier for you to make a decision, I carried out comparative assessment 10 MLM companies, according to 13 parameters, which I tabulated for clarity. Since the table turned out to be quite cumbersome, full version will be available by subscription.
What is network marketing
MLM, or network marketing- This is a method of selling goods in which a network of independent agents is created who sell products and attract other agents.
MLM allows you to realize the concept "Home work" And "earn money on the Internet", however, the success of the implementation of concepts depends on the right choice network company (not all companies welcome independent work in the Internet).
This article discusses the main parameters of the offers of the most popular MLM companies in Russia:
- Amway is a world leader in MLM selling cosmetics, household chemicals, vitamins, weight control products, tonic drinks, etc.
- Oriflame is a Swedish chain company selling cosmetics, accessories and clothing.
- LR– a German MLM brand specializing in body care cosmetics, perfumes, fashion accessories.
- NL International is a Russian network company owning 18 trademarks. This is a balanced nutrition Energy Diet, sports nutrition, coffee, tea, dietary supplements, decorative and caring cosmetics, household chemicals.
- Siberian Health is a domestic chain brand that produces cosmetics, balms, children's syrups and dietary supplements.
- Tiens is a Chinese network company selling dietary supplements, decorative and caring cosmetics, and medical devices.
- Faberlic is a Russian network company specializing in caring and decorative cosmetics and clothing.
- Avon is an American chain company that sells decorative and caring cosmetics, accessories and clothing.
- Mary Kay is an American MLM company that sells decorative and caring cosmetics.
- Herbalife is an American chain company selling weight loss cocktails and dietary supplements.
Comparison of MLM companies in Russia
| Amway | NL International | Herbalife | Faberlic | |
|---|---|---|---|---|
| resident | USA, 1959 | Russia, 2000 | USA, 1980 | Russia, 1997 |
| Price policy | Distributor price | single price | distributor price | distributor price |
| price, % discount | discount from 15 to 23 | cash-back from 10 to 34 | discount | up to 35 |
| Starting conditions (Activation) | discount from 15% - registration, 23% discount - registration. fee 1500 rub. And annually -670 rub. | 4000r - cash-back 490r. purchases 20,000 rub. - 7,600 rub. | Partner set - 2070 rub. Max. benefit - purchase of 5000 VP (1VP=70 rubles) | 4000 rub. |
| Business online, % | 15 | 35 | 17 | 34 |
| reputation on otzovik.ru | 230 / 53 | 13 / 50 | 68 / 61 | 82 / 89 |
| group volume | 8% - VAT | 4-21% | 1- 5 % | no data |
| Mentor Bonus | No | yes, 1000 rub. | No | eat. difference between prices. |
| popularity in Yandex | 85079 | 160498 | 18400 | 191165 |
| office, logistics | 16 offices. | 270 offices. | no data | 40 offices. |
Company's mission
The mission defines the values that the company offers to society, customers and employees. In the MLM industry, the mission defines the marketing plan of a network company, which in turn serves as a business plan for developing your own network business. Analysis of the mission of organizations gives the following results:
- Mary Kay and Avon have no place for men;
- Wu, Herbalife and Tienshi - there is no mission on the Russian-language website;
- Amway's Russian-language website either has an incorrect translation or its mission is not formulated for people. I can only assume that it is product-oriented;
- Oriflame, it seems to me, has an excerpt from the mission.
Conclusion: Before deciding to cooperate with companies from the numbered list, it is necessary to clarify the issue of Mission, since it will directly affect your income and success. I would not work with companies from point 2 at all.
Country of origin
Any company is a resident of the country in which it is registered as entity. As a rule, the home country market is the main market of the MLM company. The company will remain in its native market until the end!
In business practice, there are often cases when companies leave secondary markets, closing the business completely or leaving a small representative office to monitor the market. Thus, at the present period, OPEL, CHEVROLET, HONDA have curtailed or significantly reduced their business in Russia.
The second important factor in the location of the headquarters is an understanding of the mentality of secondary markets and the ability to adapt to the rapidly changing realities of these markets. It is obvious that a domestic company will adapt to changes in its “native” market faster.
Conclusion: Based on the “resident” criterion, it is preferable to choose a domestic MLM company.
Price policy
Distributor price— the price at which a networker buys goods from his company. There is also a catalog price - at which it is recommended to sell the product. This business scheme has three serious flaws:
- The product inevitably passes through the hands of the networker, i.e. checkered (or other) handbags and " sales agents Entry prohibited" do not disappear anywhere;
- The goods have to be sold at a discount, since it is not customary for us to profit from our own. The amount of the discount depends on the professionalism of the entrepreneur. For beginners, the discount is higher and they naturally earn less;
- As the product passes through your hands, it is inevitable to go through sales, which many try to avoid.
Single price policy- is devoid of these shortcomings and allows you to focus on additional income and building own business. This policy is used by one company from the list - NL International.
Conclusion: quick income in NL International is easier to realize, especially for beginners.
Price and activation of a contract in MLM
The price and quality of MLM products are higher than those of competitors of the traditional (linear) distribution system (read). Compensation for the inflated price is a system of discounts and the opportunity to develop a network business.
Activation of a contract in MLM- this is a confirmation of the seriousness of business intentions and increased competence in the assortment of the network company. You can read more about activation!
For an MLM distributor, the product costs 10 - 45% cheaper. The most generous offers are from Mary Kay, LR, Faberlic. The stingiest ones are Siberian Health, AVON, Oriflame.
Business entry (activation) is less expensive with LR and Amway. Tiens and Herbalife have very high barriers to entry.
Conclusion: most interesting conditions LR and Mary Kay are offered to enter the business.
Mentor Bonus
What is a Mentor Bonus?— this is the fee for attracting new entrepreneurs to the MLM structure. This type of reward is very relevant at the start of your network activity, allowing you to earn money immediately and practically from scratch. The mentor bonus is paid only to active managers. In the list studied by NL International and Mary Kay, the mentor bonus is clearly formulated. At Faberlic, it is present as the difference between the prices of the sponsor and the newcomer, at LR and Siberian Health - these are gifts, dinners and travel (which are very vaguely visible at the start).
Conclusion: choice in descending order - NL International, Mary Kay, Faberlic, LR, Siberian Health.
Income per group volume
This is the largest type of income in MLM, the whole “salt” of network marketing. Since the topic of the article is to help beginners in choosing an MLM, I only consider group volume in starting qualifications. It will be difficult for you to make money when starting out in LR, Herbalife and Tiens. You get a profitable start with NL International, Faberlic and Mary Kay.
Conclusion: the best offers are given (in descending order) by NL International, Faberlic, Mary Kay.
Business online
The extent to which an MLM company is liberal in relation to the independent promotion of its managers on the Internet, the implementation of the concept will be successful. "Home work" And "earn money on the Internet".
The methodology for calculating this parameter is as follows: the ratio of private pages of managers (websites, pages on social networks, pictures, advertisements in Yandex, etc.) to the total number of responses by company name in the search, as a percentage. The higher the value, the more liberal the MLM company is towards the Internet.
The worst indicators are for American companies Amway, Herbalife, Avon. The best results are from Tiansha, NL International, Faberlic. A clear illustration of the current restrictions are profiles on Instagram - where there are restrictions, you will see a palette of advertising blocks instead of content.
Conclusion: Your online business potential will be significantly limited in American companies and is capable of organic growth in Russian.
MLM reviews (reputation)
My research into MLM reviews is based on an analysis of materials from Wikipedia and Otzovik.com. Links to information about those companies for which there are materials were taken from Wikipedia. The reviewer provides live information about the interaction of MLM companies with people.
Almost all companies have positive reviews about the quality of their products. Negative information concerns three aspects: inflated promises/expectations; easy money, easy to earn and persistence, turning into obsession when recruiting candidates.
According to Otzovik, the numerator is the total number of requests, the denominator is the percentage positive feedback. The leader is Faberlic (it is worth noting that this company has a lot of laudatory reviews from the Prokopyevsky district Krasnoyarsk Territory- i.e. I do not rule out cheating). The rest of the companies are in a tight group, with the exception of Tianshi - an extremely negative attitude of respondents associated with misleading and extortion during recruiting and other nuances.
Conclusion: I would not cooperate with Tiens, Herbalife.
Popularity of search query in Yandex
In terms of search queries, Avon is the leader by a wide margin. The company's popularity is based on the democratic nature of their price segment and a large base of potential consumers with low incomes.
Conclusion: Avon is a business for women by a threefold margin.
Infrastructure
An office is like the flag of a military unit. If it is there, there is a team and there is regularity of business; if it is not there, it is partisanship. It’s easier and less expensive to meet and hold team events in the office (than, for example, in a cafe or on a bench in a park in winter).
As a rule, logistics are tied to the office - order pick-up points, stores. The shorter the path from the product to the buyer, the fewer errors and misunderstandings occur (wrong product, complaints about quality and quantity). Factor of impulse purchases, with long delivery, desired in given time, can cause disappointment and departure of newcomers.
Having an office is a solid business and a guarantee that the company is aimed at long-term success and cooperation.
MLM Companies with their own network of offices (more than 11): NL International, Faberlic, Oriflame, Siberian Health, Amway.
Companies with few offices (less than 11): LR, Tiens, Mary Kay, Avon, Herbalife.
Conclusion: Implement your business idea for a small town It’s easier with NL International (270 offices) and Faberlic (more than 40).
Rating of MLM companies in Russia
After analyzing and digitizing the initial parameters, we obtained a rating of the attractiveness of cooperation with MLM companies. When I made my choice in MLM, I did not find such material, I hope it will be useful to you.
Rating of MLM companies in Russia
| MLM Company | Position in the ranking |
| NL International | 1 |
| Faberlic | 2 |
| Mary Kay | 3 |
| Siberian Health | 4 |
| LR | 5 |
| Avon | 6 |
| Amway | 7 |
| Oriflame | 8 |
| Tianshi | 9 |
| Herbalife | 10 |
Conclusion: Every company has its own millionaires. The question is their quantity. What is important is your desire and decision to succeed in this difficult matter. The rating only tells you where you can get the desired result faster. The choice is yours!
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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 big company California Vitamins. 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: a new round was set by the American Way Corporation (abbreviation Amway), created in 1959 by former Nature’s employees 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:
- First, a person undergoes an interview, during which he is introduced to further prospects and emerging opportunities.
- Then the person is told that he must, using the network, attract new people, the greater their number, the greater his monthly income.
- 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 and the effective use of all its capabilities 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 the following rules:
- equality for all;
- helping others;
- minimum costs upon entry;
- 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. A detailed list of network companies operating successfully in Russia is given 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 target audience, create an effective sales information network, constantly improve and develop it. Network business on the Internet has the following advantages:
- the ability to conduct business from anywhere globe;
- possibility of attracting potential partners from any regions, cities and countries;
- many 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 an offer;
- 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, increase your 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 of 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
