Network marketing as a type of business is gaining new heights. However, not everyone knows him well - some trust him and are happy to cooperate with such companies, while others try to stay away from MLM trading and sincerely consider it a swindle and a "pyramid".
Network marketing and financial "pyramids" - similarities and differences
The second category of the population is only partly right - the principles of network marketing actually resemble financial "pyramids". It lies in the fact that in order to make a profit, it is necessary to attract other people. However, this is where the similarities end.
Simply put, in the second case, you can bring as many new participants as you like, but if they don’t buy anything, then the income of the “agitator” will be zero.
With the first option, the opposite is true - the client receives a percentage of the contributions of newcomers. In this case, the amount of the initial payment is usually very significant and can range from $100 to infinity. The participant most often does not receive a real product or acquires something that does not have a high value in the real world.
How to choose a company for cooperation
For those who decide to start a career in network marketing, experts advise choosing the right company for cooperation.
Here you need to pay attention to the following factors:
Training and informing consultants
For a beginner, it is very important to have the opportunity to attend various trainings, consultations with more experienced sellers. Many companies offer step-by-step training systems that allow anyone who wants to quickly move up the corporate ladder. In addition, MLM organizations often offer educational and promotional materials.
Company reliability
There are two ways here - to choose a start-up company or one that has already established itself in the market. In the first case, you can be at the very origins of the business and have more opportunities to attract new customers and get "quick" money. But here the “pitfall” is the new name of the company: firstly, no one knows the quality of its products, and secondly, it can quickly cease to exist.
In the second case - to go to work in a reputable company - there are also pluses and minuses. On the positive side: the products of this company are already known to the consumer, so they sell better. In addition, it is unlikely that it will fall apart in the next few years. But there are also disadvantages - such companies already have enough distributors, and competition among them is high.
Manufactured products
It must meet the following requirements:
- high quality and environmental friendliness is a must! After all, network marketing is built on the principle of "word of mouth", and in the event that the buyer was dissatisfied with the quality of the purchased product, he will recommend to his friends not to use it;
- a wide range - in this case, each buyer will be able to pick up something special for himself and his family. How many advisors can be successful trading only two or three positions?
- affordable prices - they should be such that 95% of the country's population can afford to purchase this product;
- not a very long validity period - this is necessary so that the client purchases these products as often as possible. If the product has a validity period of several decades (for example, dishes), then the distributor will have to constantly be in search of consumers. The ideal goods for trade are cosmetics, household chemicals, perfumes, hygiene products,.
Company rating
Continuing the topic, one can casually notice that a company for cooperation is chosen based on its financial performance. And this is logical - the more sales the company has, the better the demand for its products from consumers, the more stable it develops and grows faster.
The rating for 2018 is as follows (in billions of dollars):
- Amway - $9.50
- Avon - $6.16
- Herbalife - $4.47
- Vorverk - $4.00
- Infinitus - $2.88
- Mary Kay - $3.70
- Perfect - $3.58
- Natura - $2.41
- Tupperware - $2.28
- Nu Skin - $2.25
- Tiens - $1.55
- Primerica - $1.41
- Ambit Energy - $1.40
- Oriflame - $1.35
- Belcorp - $1.20
- Telecom Plus - $1.17
- New Era - $1.16
- Jeunesse - $1.09
- New Avon - $1.01
- Young Living - $1.00
There is a Direct Selling Association (DSA) in Russia whose main goal is to develop the network marketing industry. She is also involved in protecting consumer rights and monitoring compliance with ethical standards in doing business.
This association includes only 21 MLM companies out of many firms operating in the country:
Senior members of the APP:
- Amway
- Herbalife
- Mary Kay
- Oriflame
- Tupperware
- Tiens
Active members of the APP:
- Jafra
- Coral Club
- Mirra
- Morinda
- Nu Skin
- Tentorium
- Faberlic
- Florange
- Associate Members of the AMS:
- Accord Post
- AlliancePrint
- filuet
Based on these data, you can choose an excellent company for cooperation and start, albeit small at first, but your own and reliable business.
Almost 90% of successful MLM companies present on the Russian market work in the field of cosmetics and dietary supplements. Found their customers and categories such as goods for motorists, dishes and textiles. Many of the network brands are not only known to the consumer, but are also in high demand, which means that it is much easier to get additional income by becoming a representative of such a network. In order to reduce risks at the same time and conclude an agreement with a reliable organization, you can consider for yourself a list of network marketing companies in Russia that work completely legally and are included in the ratings of the best in terms of product quality and cooperation conditions.
Foreign MLM companies in Russia
It is worth recognizing that the best network marketing companies in Russia came to the domestic market from the US and Europe. Many of them have been operating for decades, and even today you can occupy a worthy niche in the existing chain of such a network.
The first network company that appeared on the domestic market in 1995. In the CIS countries, its name has become a household name for all nutritional supplements for weight loss and work in the network business in general. Herbalife was founded in 1980 and today is one of the three largest chains in the world. On average, annual sales of products is about 4.5 billion dollars. Income from participation in the network is generated by discounts on the purchase of products, which at the initial stage is 25%.
Official site in Russia -.
Avon
Avon
The oldest network marketing company in the world, founded in 1886 in California. It has been operating in Russia since 1991, offering cosmetics, perfumes, accessories and souvenirs. It is one of the three largest network companies in the world. Avon products are popular in 75 countries. Network members are offered a linear marketing scheme, which includes income from individual mark-ups on products and remuneration from the group's turnover.
Official site in Russia - avon.ru.
Amway
Amway
The largest and most successful MLM company. She began her work in 1959 in the USA. A distinctive feature of Amway is a wide range of products, which includes various consumer goods from cosmetics and household chemicals to bags, dishes and stationery. Amway's annual turnover is about $12 billion. Members of the network are positioned as Amway Independent Entrepreneurs who receive the right to purchase products at a discount. In addition to earning from the markup on goods, a distributor (registered as an entrepreneur with the tax authorities) can receive bonus payments for personal turnover and the turnover of the group attracted by him.
The official website in Russia is amway.ru.
The company was founded in 1963 in Texas. A feature of this network is not only the launch of high-quality and affordable cosmetics on the market, but also regular lessons for clients on skin care and makeup techniques. Because of this, Mary Kay distributors are called consultants. The annual turnover of the network is about 3 billion dollars, and the total number of consultants is more than 2.5 million people. Currently, about 500,000 network members are registered in Russia, with almost 80% being updated during the year. The partnership is based on a linear marketing system. Income is generated from an individual mark-up when selling products, as well as commissions for reaching a certain level of turnover.
Official website for citizens of the Russian Federation - marykay.ru.
The fairly well-known company Oriflame, founded in 1967, was one of the first to enter the domestic market, which today it positions as the main one. Since 2006, in addition to service centers, the production of some types of brand products has been established in Russia. There are currently more than 3.5 million registered distributors in this marketing network operating under a multi-level marketing scheme. The main products of the company are cosmetics, perfumes and Wellness line of nutritional supplements. In recent years, the company has been actively developing in the Internet space.
Official web representation in Russia -.
Many network marketing companies are trying to enter the market with a non-standard product for this business, which is in constant demand from the consumer. Perhaps best of all, the Austrian company Zepter, which began operations in 1986, succeeded in this. The main direction of goods is high-quality kitchen utensils, household appliances, medical equipment and cosmetics. Products are manufactured using our own innovative developments at six large factories located in different countries of the world. At the time of 2018, more than 120 representative offices of the network were registered in Russia, and more than 6 million people became the company's clients. Zepter offers its distributors a linear marketing system.
Russian web representation -.
A young French MLM company with a linear marketing system that entered the Russian market in 2013. The main product line is natural cosmetics at an affordable price, while distributors purchase products at a 26% discount. The income of a company representative, in addition to the markup, is also formed from the turnover of the attracted group, which ranges from 3% to 21%. Also, distributors can arrange the opening of a bureau (subdivision), receiving additional bonuses from its turnover. At the current stage, Biosea is in a phase of active growth, which makes it attractive for building an independent career.
Official site in Russia - biosea.fr/ru.
In fact, Farmasi was founded in 1950, but it entered the Russian market only in 2011. The main direction is the sale of decorative cosmetics, luxury perfumes and various care products. Like many network marketing cosmetics companies, the Turkish brand Farmasi offers to earn through a markup (discount for a partner), which directly depends on the volume of sales. Bonuses are also paid from the turnover of the attracted group, while the percentage of deductions depends on the level of the latter. Currently, the development of this network is marked by intensive growth, which is due to the high quality of products and incomparably affordable prices.
Official website of the company -.
An American company founded in 1978. A feature of this network is products made exclusively on the basis of Aloe Vera. At the same time, more than 150 items of complexes, cosmetics and dietary supplements are currently presented in the catalog. Forever Living Products' current network of distributors, acting as independent entrepreneurs, exceeds 10 million people, but this company is still very little represented in the domestic market.
Company website for the Russian market - foreverliving.com.
Another American company working in the direction of the production of cosmetics and biological supplements. Jeunesse Global focuses on anti-aging and complex rejuvenation of the body in the development of Jeunesse Global products. This is a relatively young network, registered in 2009. It appeared on the domestic market only in 2014, offering distributors six options for generating income at once, working exclusively online. At the initial stage, the partner receives a markup on products due to a 35% discount, a reward for purchasing a starter package, as well as commissions from sales of the involved team.
Russian version of the official website - jeunesseglobal-russia.ru.
Kyani
Kyani
The company has been operating since 2005, but it entered the Russian market only in 2013. The range is represented by natural juices and vitamin complexes, including noni juice. Most of the goods are made from products grown in Alaska. The company offers 12 types of income generation to network partners, including commissions for turnover without limiting the group level. At the same time, the achieved distributor rank does not decrease with a decrease in turnover. Financial data show that Kyani's annual revenue from sales of goods is consistently in the order of $1 billion, which indicates the popularity of products with the consumer.
Russian version of the company's official website - kyani.com.
One of the first Russian network companies based on a franchise purchased in the USA in 1998. The product range includes more than 150 items, most of which are bioadditives and cosmetics made on the basis of corals. Initially, the company's marketing plan had a linear scheme, which over time has been supplemented by many types of bonuses and rewards. When registering as a distributor, a 20% discount on products is automatically provided.
Russian network marketing companies
Undoubtedly, the USA is the leader in terms of popularity of the MLM business model, but our country has made significant progress in this direction over the past decades, introducing many high-quality products and promising cases for distributors to the world market. At the same time, the TOP network marketing companies in Russia are somewhat more diverse, and include networks that work with a wide range of consumer goods, and not just dietary supplements and cosmetics.
The network began operating in 2002, setting itself the goal of becoming a leader in Russian perfumery. Ciel Parfum's strictly linear marketing plan invites distributors to profit from markups on products. At the same time, in order to receive a 40% distributor discount, you must purchase one of the starter packages, costing from 25 to 75 dollars. For attracting a group and increasing turnover, the discount increases. The company's products themselves are of good quality and meet international standards, which ensures consumer demand.
This Russian brand using linear marketing undoubtedly tops the list of network marketing companies in Russia. The network began operation in 1997 and since 2003 entered the international market, delivering goods to 42 countries of the world. In recent years, the company has not only formed a network of 2 million distributors, but also absorbed several competing MLM companies. The main products are cosmetics, high-quality household chemicals, clothing and accessories. According to RBC, it is one of the fastest growing companies in Russia.
Network website -.
The main products of the company are medical equipment and household appliances for therapy and recovery. The network began its activity in 2005, and since 2009 it has received certification and permits from the Ministry of Health of the Russian Federation. The marketing strategy of the company provides for a linear scheme of cooperation with a distributor discount of up to 60% of the cost of goods. Bonus remuneration is accrued only for partners of the first level, but there are no restrictions on turnover.
Recently, a new company website has been launched - biomedis.life.
A Russian network that also works with medical equipment and, above all, devices for physiotherapy at home. It was founded in 1998 and today has more than 120 large warehouses located on the territory of the CIS countries. The assortment includes 15 types of devices, in addition to which dietary supplements and medical cosmetics have been included in recent years. The marketing scheme of cooperation includes several levels, which include discounts on products, commissions from personal sales and the turnover of the attracted group, as well as rewards for reaching a certain rank. For new partners, the company conducts very effective training sessions. Today, this network is attracting more and more attention from both distributors and ordinary consumers.
We can say that this is the first domestic Internet project that successfully combined the MLM concept and the automotive industry. The network began operation in 2014 in Barnaul and today has more than 120 offices in various regions of Russia. The main essence of the project is to provide partner discounts for a wide range of services and goods. The marketing plan of the network is based on a matrix, which you can get into by becoming a shareholder of the project (by paying an entrance fee). To stay in the matrix, you need to invite 2 partners, but at least 7 are required to receive bonuses.
The official site of the project - auto-club.biz.
Domestic brand offering a wide range of health and beauty products (cosmetics, dietary supplements, perfumes, various personal care products). The network was founded in 1996 and today it is not only one of the leaders in the Russian market, but also operates in 16 largest European countries. The number of distributors of the network exceeds 150,000 people. The success of the company is ensured not only by high-quality products, but also by a very good marketing plan that does not require the purchase of a starter pack and any investment. Also, depending on the turnover, free training programs, travel at the expense of the company, a personal car, and even participation in a housing program are offered.
Official website of the company - siberianhealth.com.
It has been operating since 2006, but only in the last period there has been an active growth of the network. The MLM marketing scheme began to be applied in 2013. The main products are health products based on seaweed. When comparing network marketing companies in this product category, Werther Organic has two advantages - more affordable cost and the use of domestic products in production. The marketing scheme for partners includes a distributor discount, seven levels of leadership rewards, team turnover bonuses, partner programs for education, housing reform, and inheritance of achieved results.
Internet representation of the network - vertera.org.
Perfume manufacturer from Russia, producing products strictly according to GOST. Litani has been operating under the network marketing scheme since 2016, offering potential partners three opportunities to become a member of the system (client, trainee, partner) and two options for earning income (up to 28% per distributor turnover and incentives in the form of a car and tourist trips). Despite a large number of competing companies, in recent years, Litani has been systematically expanding and conquering the market, which makes it a promising direction for earning.
Official website of the company -.
A network selling a wide range of quality household goods (environmental detergents and cleaning products, textiles, household appliances, car care products), operating since 1998. Despite the fact that the company is Russian, the products offered to consumers are supplied from European countries and the USA. Currently, it has registered more than 500,000 distributors distributing goods in the near abroad. A cumulative marketing plan is offered for partners, according to which you can receive discounts and earn on retail sales, get a trade loan, and also secure interest payments from the turnover of the involved team.
A young Russian MLM network that has been operating since 2014 and is characterized by stable growth. The main product is Omegaferol oil, which consists of plant components. Dietary supplements and other products for a healthy diet are also presented. The cooperation scheme offers two formats: linear when cooperating as a client (discounts on products) and binary when forming a partnership (building a balanced network).
Summing up, it is worth noting that the list of network marketing companies in Russia is regularly updated with new projects, which can also be an excellent start for you in the MLM business. On the other hand, before entering into a partnership, it is important to analyze not only the terms of cooperation, but also the relevance of the product itself with which you have to work.
What is the best MLM company? Quite a few copies have been broken on this issue. It is understandable - for everyone, their own company is the best. But there is at least one objective criterion by which you can rank the world's network marketing companies - this is sales. The MLM-PRO consulting group publishes a ranking of the top 50 global MLM companies in terms of net annual revenue.
The list was topped by a wide margin of honored industry heavyweights - Avon and Amway, and this is not surprising. But there are also some interesting newcomers in the ranking - companies with less than 10 years of history that have shown tremendous growth. Sentsy and Ambit Energy have proven how fast it is possible to build a world-class company in the MLM industry.
And we just remind you that MLM-PRO will be happy to help you create your own MLM company, and who knows, maybe in a few years your company will be on this list!
|
Company |
Annual revenue |
Year of foundation |
|||
|
Avon Products Inc. |
Beauty, fashion, cosmetics |
||||
|
Cosmetics, food and drinks, home care, dietary supplements |
|||||
|
Cosmetics and health |
|||||
|
Natura Cosmetics |
Brazil |
Cosmetics and health |
|||
|
Vorwerk & Co. KG |
Germany |
Cosmetics and health, home care |
|||
|
Cosmetics and health |
|||||
|
Tupperware Brands Corp. |
Packaging and serving, beauty and personal care |
||||
|
Oriflame Cosmetics |
Luxembourg |
||||
|
Nu Skin Enterprises Inc. |
Cosmetics and hygiene |
||||
|
Cosmetics and hygiene |
|||||
|
Primerica Financial Services Inc. |
Financial services |
||||
|
Electricity and gasification |
|||||
|
Great Britain |
Phones, traffic, electricity, cashback cards |
||||
|
Yanbal International |
Skin care, cosmetics, jewelry |
||||
|
Ambit Energy, L.P. |
Energy |
||||
|
South Korea |
Cosmetics and hygiene, drinks |
||||
|
USANA Health Sciences Inc. |
|||||
|
New Era Health Industry Group, Co., Ltd. |
Cosmetics, health, cleanliness |
||||
|
Telecommunications and energy |
|||||
|
Cosmetics and hygiene, food and drinks, decor, kitchen |
|||||
|
Nutritional supplements, skin care, weight management |
|||||
|
The Pampered Chef Ltd. |
Kitchen, cooking |
||||
|
Party Lite (Blyth) |
Candles, candlesticks, home decor and comfort |
||||
|
Thirty One Gifts LLC |
Clothing and accessories, home comfort |
||||
|
Market America Inc. |
Health, Supplements, Weight Management, Financial Services, Pets, Home & Garden, Internet |
||||
|
Menard Japan Cosmetics |
Skin care, cosmetics |
||||
|
Cosway Corp. Ltd. |
Malaysia |
Dietary supplements, skin care, home care, car care, clothing, food and drink |
|||
|
DXN Holdings Berhad |
Malaysia |
Food and drink, decor, cuisine |
|||
|
For Days Co., Ltd. |
Cosmetics, food and drinks |
||||
|
Skin care |
|||||
|
Better Way Co., Ltd. |
Cosmetics |
||||
|
Nature's Sunshine Products, Inc. |
Skin care, self care, cosmetics |
||||
|
WIV Wein International AG |
Germany |
||||
|
Arbonne International LLC |
Anti-aging cosmetics, body care, health |
||||
|
Southwestern/Great American Inc. |
family education |
||||
|
Cosmetics, personal care, home care |
|||||
|
Noevir Holdings Co., Ltd. |
Skin care, dietary supplements, cosmetics |
||||
|
Pro-Health (China) Co., Ltd |
Healthy food, skin care |
||||
|
LR Health & Beauty Systems |
Germany |
Cosmetics, personal care, dietary supplements, jewelry |
|||
|
Eureka Forbes Limited |
Vacuum cleaners, air fresheners, security systems |
||||
|
Energy, security |
|||||
|
Charles Corp. Ltd. |
Cosmetics |
||||
|
Healthy food, food and drinks, cosmetics, household goods |
|||||
|
Isagenix International |
Supplements, skin care, weight control |
||||
|
4Life Research L.C. |
Immune support, health |
||||
|
PM International AG |
Germany |
Supplements, healthy eating |
|||
|
Team National Inc. |
Home care, jewelry, dietary supplements |
||||
|
Japan Life Co. Ltd. |
Magnetic therapy, skin care, diet nutrition, dietary supplements |
||||
|
Energy |
*according to WDSA, 2012 data
In order to make it easier for you to make a decision, I conducted a comparative assessment of 10 mlm companies, according to 13 parameters, which I summarized in a table for clarity. Since the table turned out to be quite cumbersome, the full version will be available by subscription.
What is network marketing
MLM or network marketing- this is a way of selling goods, which creates a network of independent agents involved in the sale of products and the involvement of other agents.
MLM allows you to realize the concept "Home work" And "make money online", however, the success of the implementation of the concepts depends on the correct choice of a network company (not all companies welcome independent work on 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 management products, tonic drinks, etc.
- Oriflame is a Swedish network company selling cosmetics, accessories and clothing.
- LR is a German MLM brand specializing in cosmetics for body care, perfumes, and fashion accessories.
- NL International is a Russian network company owning 18 trademarks. These are balanced nutrition Energy Diet, sports nutrition, coffee, tea, dietary supplements, decorative and caring cosmetics, household chemicals.
- Siberian Health is a domestic network brand that manufactures cosmetics, balms, children's syrups and dietary supplements.
- Tiens (Tiens) is a Chinese network company selling dietary supplements, decorative and caring cosmetics, and medical devices.
- Faberlic is a Russian network company specializing in skin care and decorative cosmetics, clothing.
- Avon is an American network company selling decorative and caring cosmetics, accessories and clothing.
- Mary Kay- American MLM company that sells decorative and caring cosmetics.
- Herbalife is an American network company selling slimming cocktails, 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 |
| Start conditions (Activation) | discount from 15% - registration, 23% discount -reg. contribution 1500 r. And annually -670r. | 4000r - cash-back 490r. purchases 20 000r - 7600r. | Partner set - 2070 rub. Max. benefit - purchase of 5000 VP (1VP = 70 rubles) | 4000 r. |
| 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 | et. 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 network company's marketing plan, which in turn serves as the business plan for developing one's own network business. Analysis of the mission of organizations gives the following results:
- Mary Kay and Avon have no place for men;
- U, Herbalife and Tienshi - there is no mission on the Russian-language site;
- Amway has either an incorrect translation on the Russian-language website, or the mission is not formulated for people. I can only assume that it has a commercial focus;
- At Oriflame - it seems to me, an excerpt from the mission is presented.
Conclusion: Before deciding to cooperate with companies from a numbered list, it is necessary to clarify the question of the Mission, since it will directly affect your income and success. With companies from point 2, I would not work at all.
Country of origin
Any company is a resident of the country in which it is registered as a legal entity. As a rule, the market of the native country is the main market of the MLM company. In the home market, the company will stand to 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. So, at present, OPEL, CHEVROLET, HONDA, curtailed or significantly reduced their business in Russia.
The second important factor in the location of the headquarters is the understanding of the mentality of secondary markets and the ability to adapt to the rapidly changing realities of these markets. It is obvious that the domestic company will adjust to the changes in the "native" market faster.
Conclusion: On the basis of "resident", it is preferable to choose a domestic MLM company.
Price policy
Distributor price- the price at which the networker buys goods in his company. There is also a catalog price - at which it is recommended to sell the goods. This business scheme has three serious flaws:
- The goods inevitably pass through the hands of the networker, i.e. checkered (or other) handbags and “trading agents are not allowed to enter” do not disappear anywhere;
- The goods have to be sold at a discount, since it is not customary for us to cash in on our own. The size of the discount depends on the professionalism of the entrepreneur. Beginners have a higher discount and naturally earn less;
- As the product passes through your hands, it is inevitable to go through sales, which many people try to avoid.
Single price policy- is devoid of these shortcomings and allows you to focus on additional earnings and building your own business. This policy is used by one company from the list − NL International.
Conclusion: quick income in NL International is easier to implement, especially for beginners.
Price and contract activation in MLM
The price and quality of MLM products are higher than those of competitors in the traditional (linear) distribution system (read). The inflated price is compensated for by a system of discounts and the opportunity to develop a network business.
MLM contract activation is a confirmation of the seriousness of intentions in business and the increase in competence in the range of the network company. You can read more about activation!
For an MLM distributor, the goods are cheaper by 10 - 45%. The most generous offers are from Mary Kay, LR, Faberlic. The most stingy are Siberian Health, AVON, Oriflame.
Business entry (activation) is less expensive for LR, Amway. Tiens and Herbalife have very high entry barriers.
Conclusion: the most interesting conditions for entering the business are offered by LR and Mary Kay.
Mentor Bonus
What is a mentor bonus- this is a fee for attracting new entrepreneurs to the MLM structure. This type of promotion is very relevant at the start of your network activity, allowing you to earn immediately and practically from scratch. The mentor bonus is only paid to active managers. In the researched list for NL International and Mary Kay, the mentor bonus is clearly articulated. At Faberlic, it is present as a difference between the prices of a sponsor and a beginner, at LR and Siberian Health - these are gifts, dinners and travel (which are very vaguely visible at the start).
Conclusion: selection in descending order - NL International, Mary Kay, Faberlic, LR, Siberian Health.
Group Volume Revenue
This is the biggest form of income in MLM, the whole “salt” of network marketing. Since the topic of this article is to help beginners choose MLM, I'm only looking at group volume in starting qualifiers. It will be difficult for you to make money at the start in LR, Herbalife and Tiens. You realize a profitable start with NL International, Faberlic and Mary Kay.
Conclusion: the best deals are given (in descending order) by NL International, Faberlic, Mary Kay.
Business online
As far as the MLM company is liberal regarding the independent promotion of its managers on the Internet, the implementation of the concept will be so successful "Home work" And "make money online".
The methodology for calculating this parameter is as follows: the ratio of private pages of managers (websites, pages in social networks, pictures, advertisements in Yandex, etc.) to the total number of responses to the company name in the search, in percent. The higher the value, the more liberal the MLM company is about the Internet.
The worst performance of the American companies Amway, Herbalife, Avon. The best indicators are for Tiensha, NL International, Faberlic. A clear illustration of the current restrictions are Instagram profiles - where there are restrictions, you will see a palette of ad units instead of content.
Conclusion: Your online business potential will be significantly limited in US companies and capable of organic growth in Russian ones.
MLM reviews (reputation)
My research on MLM reviews is based on the analysis of materials from Wikipedia and Otzovik.com. From Wikipedia, links are taken to information about those companies for which there are materials. Otzovik provides live information about the interaction of MLM companies with people.
Almost all companies have positive reviews about the quality of products. Negative information concerns three aspects: inflated promises/expectations; easy money, easy money and persistence, turning into obsession when recruiting candidates.
According to Reviewer, the numerator is the total number of requests, the denominator is the percentage of positive reviews. The leader is Faberlic (it is worth noting that this company has a lot of laudatory reviews from the Prokopevsky district of the Krasnoyarsk Territory - that is, I do not rule out cheating). The rest of the companies are in a dense group, with the exception of Tiensha - an extremely negative attitude of respondents associated with misleading and extortion in recruiting and other nuances.
Conclusion: I would not cooperate with Tiens, Herbalife.
Search query popularity in Yandex
For search queries, Avon leads by a wide margin. The popularity of the company 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 three-fold margin.
Infrastructure
An office is like the flag of a military unit. If he is, there is a team and there is a regularity of business, if he is not there, this is partisanism. It is easier and less expensive to meet and hold team events in the office (than, for example, in a cafe or in a park on a bench in winter).
As a rule, logistics is tied to the office - points of issue of orders, shops. The shorter the path from the product to the buyer, the less errors and misunderstandings occur (wrong product, quality and quantity complaints). The factor of impulsive purchases, with a long delivery of what is desired at a given time, can be the cause of disappointment and the departure of newcomers.
The presence of an office is the solidity of the 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: Realize your business idea for a small town 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 got 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 |
| Tienshi | 9 |
| Herbalife | 10 |
Conclusion: Every company has its own millionaires. The question is their number. What is important is your desire and decision to succeed in this difficult task. The rating only tells you where you can get the desired result faster. The choice is yours!
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Traditionally, on the first Sunday of December, Russia celebrates Networker's Day - a holiday for everyone involved in network marketing and direct sales. On this occasion, we decided to recall the most famous MLM companies and understand whether multilevel marketing is a serious competitor to retail.
Strong link
Multilevel marketing (MLM) is one of the methods of direct sales. With it, the sale of goods is carried out through a network of independent agents, each of which can not only sell the company's products, but also attract partners for this. At the same time, his income will be made up of his own revenue and a percentage of the revenue of the people he hires. Another name for the system is Network Marketing, which translates as "network marketing".
Profit from direct sales for distributors is quite low. They give most of the proceeds to the company and to higher-ranking distributors. The main profit comes from the sales of sponsored distributors.
MLM companies are often confused with pyramid schemes like MMM or Khoper Invest. Indeed, the "pyramids" took the principle of network marketing as a basis.
The participants who stand at their origins receive money from the contributions of "newbies". But, unlike network companies, "pyramids" do not offer specific goods, but in fact they trade in air. The life cycle of "financial pyramids", as a rule, is no more than a few years - they exist only as long as new investors appear. While large MLM companies have been successfully operating for decades, bringing small but stable incomes to the lower levels, and billions to those who are at the source.
Pioneer Carl Rehnborg
The history of the creation of MLM companies is associated with the name of the entrepreneur Karl Rehnborg. In 1927, he opened a small firm selling food additives of his own production. At first, Rehnborg sold products to acquaintances, who, in turn, shared rave reviews with their friends.
And there were those who wanted to. In 1934, Carl Rehnborg founded California Vitamins, which was later renamed Nutrilite Products. Very quickly, the company reached a turnover of several million dollars, without spending a single cent on advertising - only through direct sales.
To this day, nutritional supplements and cosmetics remain the most popular products sold through MLM marketing.
AMWAY
Amway (American Way of Life) was founded in 1959 by Nutrilite Products employees Richard DeVos and Jay Van Endela. They decided to slightly change the principles of work that Nutrilite used. First, Amway began to sell different groups of goods. In addition to dietary supplements, a variety of household chemicals and cosmetics appeared in the assortment. Now the company offers over 3000 items. Secondly, DeVos and Van Endela introduced a multi-level marketing plan for employees and began to pay remuneration not only from personally attracted distributors, but also for sales volumes of agents of all levels. This led to the rapid growth of Amway.
Now the company's turnover is over 8 billion dollars, and it ranks 25th among the largest private companies in the US according to Forbes. True, the history of Amway is not cloudless. More than once she became a participant in scandals. So, one of the former top distributors of the company, Eric Scheibeler, who is personally acquainted with the founders of Amway, in the book "Deceitful Merchants" accused the corporation of fraud and called it a totalitarian sect. This is not the first accusation of "Amveevites" of sectarianism. The training methods used in the company have been criticized more than once.
AVON PRODUCTS
The "long-liver" among MLM companies dates back to 1886 with a small firm called California Perfume. It was created by American David McConnell. Initially, the company's assortment included only 5 types of simple perfumes with floral aromas. Now AVON offers hundreds of cosmetics, perfumes, jewelry and accessories. The company's turnover is about 10 billion dollars a year, and the number of distributors around the world is in the millions.
Why McConnell is not considered a pioneer in the creation of MLM enterprises - history is silent. Perhaps the fact is that the company, although it used the principle of direct sales from the beginning of its existence, did not immediately come to a multi-level scheme. But the company AVON went down in history by being the first of the cosmetic giants to refuse to test products on animals.
Mary Kay
Another American corporation. Created in 1963 by Mary Kay Ash and named after the founder. It offers hygiene products, cosmetics and perfumes of the middle price segment. Ranked 6th in the world among direct selling companies in 2012.
Mary Kay's "chip" is that its consultants do not just sell products, but act as "beauty consultants". That is, they undergo basic skin care training. The second feature is that the territories are not assigned to a specific consultant: they can hire their agents anywhere in the world.
Like Avon, Mary Kay stopped testing its products on animals in the early 90s, but resumed it in 2010. For which she was severely criticized by the "greens".
ORIFLAME
The Swedish cosmetics concert Oriflame was founded in 1967 by brothers Jonas and Robert af Jochnik. In the early years, only one product line was sold, now the range includes about 1000 items of cosmetics and perfumes. The annual turnover is about 2 billion dollars, the number of consultants in the world is over 3 million people.
Oriflame positions itself as an environmentally friendly company and even prints catalogs on paper, which is produced from artificially planted forests. Therefore, Greenpeace people do not attack the company much. But she came to the attention of the tax authorities. In August of this year, the Russian representative office of Oriflame and non-payment of taxes for several million rubles.
FABERLIC
The first Russian MLM company was founded in 1997 by entrepreneurs Alexander Davankov and Alexei Nechaev. The original name is Russian Line, the Faberlic brand was registered in 2001. The company currently operates in 20 countries, including Poland, Germany, Romania and Hungary.
The company considers its know-how to be "oxygen cosmetics" - face and body care products based on perfluorocarbons. Faberlic's turnover is now over $250 million a year.
KIRBY
The company for the production and sale of vacuum cleaners this year celebrates its 100th anniversary. It was founded in 1914 and bears the name of the developer of the first vacuum cleaner models, Jim Kirby. The "chip" of the company is that in a certain period it sells only one model of vacuum cleaners. After the model becomes obsolete, it is removed from production and they start selling a new one.
Kirby is the most scandalous representative of the MLM diaspora. Every year, US consumer protection agencies receive dozens of complaints about the incorrect actions of the company's distributors. Allegedly, they use severe psychological pressure to force the client to give money for expensive equipment (for reference, the price of a Kirby vacuum cleaner starts at 100 thousand rubles). Russian forums are also full of messages: “Kirby vacuum cleaners are a scam, a scam, a divorce!”. Nevertheless, the company continues to operate in Russia and in 70 other countries around the world.
HERBALIFE
Created in 1980 in the USA, it offers products for weight loss, healthy nutrition and skin care. Herbalife's international division is now led by former Disney CEO Michael O. Johnson, and skincare R&D by Paolo Giacomoni, formerly of Estee Lauder and L'Oreal.
Herbalife is the first American MLM company to open a representative office in Russia. This happened in the early 90s and coincided with the appearance in Russia of a huge number of financial pyramids. Therefore, many still mistakenly rank HERBALIFE among them.
The debate about whether the MLM business is good or bad continues to this day. Some extol multi-level structures, seeing them as opportunities for quick earnings, others condemn the very principle of building pyramids. Business analysts do not agree. Some predict that direct selling will soon replace traditional retail, while others believe that retail and e-commerce will eventually kill MLM. However, network marketing has been around for decades and is not going to go down just yet.
Alena Yarkova almost got into the network
Illustrations by Dmitry Shevchuk
