Amazing year! Judge for yourself:
Industry leaders - Amway, Avon, Herbalife, Mary Kay, Tupperware— practically retained their positions, having undergone a slight decline.
Nu Skin And Oriflame slightly increased turnover and raised their positions in the table.
Company Faberlik significantly increased the turnover, increasing it by almost 60%, perhaps this was due to the expansion of the product line in clothing and footwear. Let's rejoice for the only Russian company in the rating.
PM International increased trade turnover, rising from 41st to 36th place.
And here Jeunesse Global, showing a phenomenal rise in past years, fell by as much as 8%. And this is not an accident, but a natural beginning of stabilization or even a fall, it is obvious that the wave of growth on the purchases of other network companies cannot last forever. Next year will show...
The catastrophic fall Tiens(Tianshi) - from 32nd place they fell to 94th ... The reason for this fall is not known, it is very possible that the change in the MT that was introduced for the CIS countries affected it. If so, then the main turnover of the company was in the CIS.
Company LR Health didn't make it into this year's list at all. The reason is not known, but it usually happens when the decline in turnover is so catastrophic that management becomes embarrassed about the position of their company.
Dropped out of the rating and the Russian company Vision(Vision), apparently the merger with Freedom International Group did not lead to a significant breakthrough, but quite the contrary.
We mentioned only those companies that worked or continue to work in the CIS market. Perhaps some of those who are now in the table are planning to develop their business with us, if you have such information - let us know, we will take note of such a company.
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№ | Company name | Dynamics | Sales volume in 2017, $ million | Sales volume in 2016, $ million | Sales volume in 2015, $ million | Sales volume in 2014, $ million | Sales volume in 2013, $ million | Sales volume in 2012, $ million | Sales volume in 2011, $ million |
---|---|---|---|---|---|---|---|---|---|
1 | Amway (Alticor) | -2% | 8600 | 8800 | 9500 | 10800 | 11800 | 11300 | 10900 |
2 | Avon Products | 0% | 5700 | 5700 | 6160 | 8900 | 9950 | 10700 | 11300 |
3 | Herbalife | -2% | 4400 | 4500 | 4470 | 5000 | 4800 | 4100 | 3500 |
4 | Vorwerk & Co | 0% | 4190 | 4200 | 4000 | 3900 | 3700 | 3300 | 3000 |
5 | Infinitus | 15% | 3920 | 3410 | 3880 | 2640 | 2640 | ||
6 | Mary Kay | -2% | 3250 | 3500 | 3700 | 4000 | 3600 | 3100 | 2900 |
7 | Natura Cosmetics SA | 37% | 3090 | 2260 | 2410 | 3200 | 3200 | 3200 | 3010 |
8 | Perfect | -3% | 2960 | 3060 | 3580 | ||||
9 | Nu Skin | 3% | 2280 | 2208 | 2250 | 2570 | 3180 | 2200 | 1744 |
10 | Tupperware Brands | 2% | 2260 | 2210 | 2280 | 2600 | 2670 | 2600 | 2600 |
11 | Coway | 2050 | |||||||
12 | JoyMain | 6% | 1580 | 1490 | |||||
13 | Oriflame | 10% | 1537 | 1400 | 1350 | 1680 | 1950 | 2000 | 2100 |
14 | SUN HOPE | 63% | 1536 | 940 | |||||
15 | young living | 52% | 1520 | 1000 | 1000 | ||||
16 | Rodan + Fields | 1500 | |||||||
17 | New Era Health | 15% | 1330 | 1160 | 1160 | 928 | 678 | 555 | |
18 | Jeunesse Global | -8% | 1300 | 1410 | 1090 | 419 | 257 | 126 | 65 |
19 | Pola | 22% | 1220 | 1004 | 823 | 800 | 800 | ||
20 | Ambit Energy | -4% | 1150 | 1200 | 1400 | 1500 | 1200 | 930 | 664 |
21 | Belcorp | 5% | 1140 | 1090 | 1200 | 1400 | 1960 | 1900 | 1600 |
22 | DXN | 19% | 1100 | 927 | 862 | 780 | 780 | ||
23 | USANA | 4% | 1050 | 1010 | 918 | 790 | 718 | 649 | 582 |
24 | Longrich | 549% | 1000 | 154 | 167 | 224 | 292 | 287 | 167 |
25 | Telecom Plus | -13% | 979 | 1120 | 1170 | 1100 | 1100 | 892 | 731 |
26 | Yanbal International | 5% | 971 | 924 | 747 | 856 | 848 | 815 | 720 |
27 | Isagenix | 4% | 958 | 924 | 890 | 725 | 448 | 334 | 262 |
28 | Market America | 3% | 820 | 798 | 791 | 384 | 574 | 505 | 462 |
29 | Quanjian | -73% | 786 | 2890 | |||||
30 | Yandi | 15% | 740 | 644 | 597 | ||||
31 | Stream Energy (Ignite) | 0% | 737 | 735 | 866 | 918 | 867 | 840 | 861 |
32 | Juice Plus | 730 | |||||||
33 | Team National | 9% | 719 | 659 | 549 | 399 | 332 | 301 | 230 |
34 | YoFoto | 85% | 696 | 376 | 399 | 400 | 428 | ||
35 | Amore Pacific | 681 | |||||||
36 | PM International | 37% | 632 | 460 | 350 | 313 | 284 | 249 | 232 |
37 | Hualin | 577 | |||||||
38 | Faberlic (Faberlik) | 58% | 563 | 356 | 330 | 200 | |||
39 | Plexus | 6% | 562 | 532 | 384 | 310 | 160 | ||
40 | Arbonne | 2% | 553 | 541 | 520 | 486 | 413 | 377 | 353 |
41 | Mike Corp. | -10% | 535 | 597 | 578 | 868 | 783 | 1100 | |
42 | golden days | 518 | |||||||
43 | Advocate International | -19% | 472 | 586 | 719 | 494 | 460 | 255 | 138 |
44 | Scentsy | 3% | 468 | 456 | 429 | 419 | 485 | 560 | 537 |
45 | Rolmex | -11% | 459 | 515 | 448 | 512 | 512 | ||
46 | legal shield | 2% | 457 | 450 | |||||
47 | Pro Health | 56% | 400 | 257 | 251 | ||||
48 | For Days | 5% | 383 | 365 | 325 | 360 | 376 | 445 | 400 |
49 | Nature's Sunshine (NSP) | 0% | 342 | 341 | 325 | 366 | 378 | 368 | 368 |
50 | Resgreen | 41% | 326 | 232 | 299 | ||||
51 | 4Life Research | -4% | 316 | 328 | 321 | 332 | 300 | 268 | 250 |
52 | Monat Global | 314 | |||||||
53 | Apollo | 296 | 538 | 448 | 340 | 170 | |||
54 | LG Household & Healthcare | 292 | 321 | 215 | 350 | ||||
55 | Family Heritage Life | 7% | 284 | 265 | 254 | 237 | 192 | 202 | |
56 | OPTAVIA / Medifast | 257 | |||||||
57 | Hy-Cite Enterprises, LLC | 9% | 253 | 233 | 195 | 178 | 164 | 159 | |
58 | Alphay International | 26% | 252 | 200 | 135 | ||||
59 | Noevir Holdings | 0% | 250 | 249 | 189 | 582 | 455 | 326 | 345 |
60 | CUTCO (Vector Marketing) | 10% | 245 | 222 | 204 | 165 | 200 | 200 | |
61 | Best World Int'l Ltd | 237 | |||||||
62 | Alpha | 222 | |||||||
63 | AnRan | -31% | 222 | 321 | 296 | ||||
64 | Menard Cosmetics | -17% | 221 | 267 | 198 | ||||
65 | Southwestern Advantage | 0% | 219 | 218 | |||||
66 | pure romance | 7% | 218 | 203 | 164 | ||||
67 | Pruvit | 214 | |||||||
68 | Norland | 207 | |||||||
69 | KK Assuran | 205 | |||||||
70 | green leaf | 201 | |||||||
71 | New Image Group | 61% | 200 | 124 | |||||
72 | Seacret | 24% | 200 | 161 | 151 | 145 | 71 | ||
73 | Life Vantage | -3% | 200 | 207 | 190 | 214 | 208 | 187 | 70 |
74 | NHT Global | -31% | 198 | 288 | 265 | ||||
75 | Merro | -32% | 192 | 283 | 328 | ||||
76 | Giffarine Skyline Unity | 16% | 179 | 154 | 153 | ||||
77 | princess house | -8% | 179 | 195 | 170 | ||||
78 | ARIIX | 18% | 178 | 151 | 112 | 73 | 50 | ||
79 | Cosway | 178 | 749 | 440 | 433 | 433 | |||
80 | Kangli | 177 | |||||||
81 | Mannatech | -2% | 176 | 180 | 180 | 190 | 177 | 173 | 201 |
82 | BearCere Ju | -1% | 169 | 170 | 145 | 185 | 166 | 192 | 198 |
83 | World Global Network | 13% | 165 | 146 | 157 | ||||
84 | Charles Corporation | -7% | 161 | 173 | 154 | 250 | 208 | 258 | 288 |
85 | Vida Divina | 153 | |||||||
86 | Marketing Personal | -4% | 147 | 153 | |||||
87 | Diana | 47% | 144 | 98 | 139 | 204 | 166 | 204 | |
88 | Ideality | 24% | 143 | 115 | 104 | ||||
89 | youngevity | -13% | 142 | 163 | 156 | 134 | 86 | 75 | |
90 | FuXion Biotech | 4% | 141 | 135 | |||||
91 | Naris Cosmetics | -4% | 138 | 144 | 178 | 282 | 214 | 214 | |
92 | Vestige Marketing | 31% | 127 | 97 | |||||
93 | Jimon | 53% | 118 | 77 | 90 | ||||
94 |
What is network marketing - a path to success or a mythical way to make money? Historical facts about MLM + pros and cons + TOP-5 companies in the Russian Federation.
What is network marketing?
Most people agree that these are some kind of fraudulent schemes that allow only happy few people to earn money.
Such thoughts are connected with the main problem of MLM - these are extremely high promises to customers.
Today, after reading the article, you will learn what the essence of network marketing operations is.
And, of course, you will get an answer to the question: is it possible to get real income using such a business scheme.
What is network marketing: historical background
Network marketing (MLM) in its current form was not a separate business development model. It appeared as a manifestation of the need to sell goods.
Who was the first to discover such a scheme and become the founder of a network business?
The founder of the first network sales scheme is Karl Rehnborg.
If the thought occurred to you that this person built his policy for decades before starting a business, this is not so.
All complex things started with a banal approach.
Carl Rehnborg grew alfalfa on his property. At that moment, an idea hit his bright head:
“But what if all the beneficial substances from alfalfa can be converted into an edible form for humans, so that its intake can increase the vitamin tone of the body?”
Undoubtedly, Karl had a good purpose.
Later, he opened his own line of healthy food and began to offer it to friends and work colleagues, explaining the usefulness of the new product.
It is interesting that, out of the kindness of his heart (no other reason can explain this), Karl distributed goods just like that, without demanding any money in return.
What do you think was the effect of promoting free useful products?
No. Nobody believed Carl. Everyone was very embarrassed that a person can simply give away a useful, worthwhile product.
Karl Rehnborg came to an unexpected conclusion: if a nutritional supplement is sold at the average market price, and not just distributed to friends, demand will appear.
And hit right on the spot!
Karl began to use this business scheme, thus giving rise to one of the main postulates of MLM - mutual assistance and team support.
Rehnborg's friends started buying his merchandise. It no longer seemed to them that this was a cheap hoax for one simple reason - it ceased to be cheap.
Then Karl began to look for new ways to expand the network of buyers. And again came to the correct conclusion!
They consisted of a percentage of the sale of nutritional supplements. Now you know the scheme of work of a standard network company? That's how it all started.
The result of the work of Carl Rehnborg:
- 1934 - Carl founds California Vitamins, thereby expanding the range of products sold.
In 1934, Rehnborg renamed the company Nutrilite Products.
The principle of operation remains the same.
A whole network of distributors of products, the so-called partners, was formed.
Each partner attracted new employees by offering a percentage of product sales and dividends for quality organizational performance.
Karl Rehnborg is known throughout the world as the "father of the network business."
After a short historical study, it's time to turn to the realities of the modern MLM business.
What is modern network marketing: terms and definitions
Network marketing- this is one of the types of retail sales of products, based on the direct, direct interaction of sellers with consumers.
A feature of network marketing is the ability of each client to become an implementer.
It would be most correct to compare the network business with a multi-level dealership. MLM also consists of several levels.
No wonder such organizations are often called financial pyramids!
Let's take a look at the main components.
The first step of the pyramid: manufacturer - distributor
The first stage of activity under the MLM scheme is that the manufacturing company provides its products to a partner.A partner is a natural person who enters into a cooperation agreement with a supplier.
On the territory of the CIS, this contract is not included in the labor format, i.e. does not provide you with social guarantees, has a special form of taxation.
The terms of the contract have similar clauses in any area of the network business:
- obligatory use of the manufacturer's products by the partner;
- attracting new partners to the organization;
- work according to a clear scheme defined by the organizers;
- unquestioning observance of the moral principles and policies of the company;
- minimum monthly sales.
Subject to the execution of each clause of the contract, according to MLM, you get access to unlimited earnings.
Second Stage: Second Tier Partners
From the second order, the whole essence of the scheme of MLM activity begins.
Each partner who was invited by a higher-level participant (Stage 1) performs all the same functions as his curator.
The only difference is that part of the sales income remains in the pocket of the superior curator.
Each participant, as a result, seeks to form his own structure, as this brings real income in the form of dividends from his own sales and the activities of "subordinates".
P.S. The word "subordinates" is deliberately put in quotation marks: in the structure of network marketing there is no concept of line management.
All relationships between colleagues at various levels are based on mutual assistance - this is simply beneficial for all partners.
Step Three: Entry Level Partners
Lower-level partners differ from the founders only in that they have a lower income. At the same time, functional responsibilities, as units of MLM, are unchanged.
Work at the first or second level involves the manifestation of maximum activity not in the sale of products, but in the promotion and formation of one's own structure.
An intermediate conclusion should be drawn:
The scheme of interaction of network sales involves the development of the structures of each employee.
The explanation of this process is very simple - each subsequent implementer receives a percentage of sales + dividends from the entire network organized by him, as a percentage of the profits of "new" participants.
Network marketing - is it that simple?
The concept of network business and MLM structures has negative associations, especially in the CIS, where people have been taught by the bitter experience of financial pyramids.This section provides the reader with a comprehensive overview of how network marketing works - an unbiased assessment of the income opportunity.
Benefits of network marketing
Lack of a linear system of leadership.
You work for yourself, which is very similar to entrepreneurship.
Close-knit team.
Each partner is interested in supporting "junior colleagues", as it brings him financial benefits.
There will always be a person who will help organize your network activities in the right direction.
Curating is the backbone of network business.
Opportunity for continuous growth.
Another positive aspect of MLM.
It all depends on your abilities, including earnings.
A lot of experience in interacting with people.
This is a useful skill for everyday life and the development of your own entrepreneurial project.
Network business can be considered as a platform for further implementation of one's own business.
Flexible schedule.
Representatives of MLM structures can work from 10 to 30 hours a week, thereby combining it with work or study.
You must understand that network business cannot replace the main source of income.
At least in the early stages of activity.
Negative aspects of network marketing
Possible destabilization of the network structure at any time.
This process may be triggered by the activities of individual partners, which will not meet the company's standards.
You must consider the possibility of the collapse of the entire structure, as many years of experience of MLM participants proves such a possibility.
Undefined payment standards.
An example is the American company Starcom, whose representatives promised high payouts to each participant.
As a result, partners took out loans, pledged property, and the company paid less than 25% of the announced amount.
It is not difficult to guess what material damage customers received.
Opportunity to get into the financial pyramid.
Imagine a situation in which you invested in an MLM structure by purchasing an initial package of products.
Several months pass, the structure of clients expands, they also make deposits, buy products.
Another month passes, you have not yet been able to cover even your own expenses, since the goods are not in demand.
The company is closing...
In this situation, approximately 50% of the participants remain without profit.
They were unable to sell the product, but made a significant investment.
If you have never dealt with entrepreneurship, it will be very difficult to “resist” in the MLM mode of operation.
The specificity of the activity lies in the constant moral tension, since you are responsible for your sales and the entire organized structure.
After analyzing the pros and cons of network marketing, you can assess the degree of risk of such a business activity as quite high.
A feature of working on a network scheme is the constant responsibility for one's work + training and control of lower-level partners.
You already know what network marketing is and you can independently assess the prospects for development in this direction.
If you are confident in your organizational talent, as well as the abilities of a manager and financier, it's time to move on to choosing an employer.
Network Marketing: Choosing an Employer
Your network income and confidence in stability depend on the right choice of employer.
To begin with, it is necessary to consider possible options for the Russian business space.
Top 5 Russian MLM market
Network company name | MLM market share (%) | Description of activity |
---|---|---|
~30 | Sale of cosmetics, pricing policy - acceptable for the middle class. Get ready to meet a huge female team and find your place in it. Network activities in AVON are more suitable for girls. | |
~30 | Marketing sphere - cosmetics, souvenirs, healthy food. One of the leaders of the Swedish MLM market. The advantages include increased loyalty to their employees. Working in this network company will allow you to have a small but stable income. | |
8 | Stability is the most appropriate word to describe the activities of AMVAY. Marketing sphere - from household utensils to dietary supplements. Unlike the companies mentioned above, it provides equal chances for development, regardless of the gender of the employee. This fact is derived from the wide range of products on offer. | |
5 | A company that only accepts women. Specialization - cosmetics, products for the care of appearance. One of the most experienced network organizations, but still not widely spread on the Russian market. | |
4.5 | Leading manufacturer of natural cosmetics. It is one of the most progressive companies on the Russian market, it has a strong base for network marketing. |
The main criterion for choosing an MLM company is experience in the market. This is explained very simply: you will get the expected result, verified by others.
It is dangerous to work for the "newcomers" of the MLM market, because you cannot be 100% sure that all obligations are true.
You can learn about the many benefits of network marketing from the video:
What is network marketing? After reading the article, you are already able to independently determine the meaning of this term.
Network marketing evokes a subjective attitude in every reader.
With 100% certainty, only one thing can be said - making money working in the MLM system is possible and cannot be argued with.
A completely different question - will it be possible for you to do this?
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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
AvonThe 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
AmwayThe 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 customers. 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 sales volume. 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
KyaniThe 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.
Alexander Ivanov
I am glad to welcome you, readers of my blog.
It was born in 1963 and, hard to guess, was named after its founder.
The catalogs offer high-quality cosmetic products and are in great demand among Russian consumers.
Back in 2012, the organization took the honorable 6th place among international companies in direct sales. And this is worth a lot, given the scale of statistics.
A feature of this MLM company is the high level of preparedness of sales agents.
They not only sell products, but also receive pre-training in the use of cosmetics and skin care, which ensures a professional approach and a high degree of customer confidence.
Location 6. Oriflame
This time it was not the Americans who distinguished themselves, but the Swedes. is a Swedish brand founded in 1967.
Back then, the catalogs offered only one product line, while today the range includes over 1,000 perfumes and cosmetics. The turnover is 2 billion dollars a year, and there are more than 3 million net distributors.
A feature of the company was the position of an environmentally friendly manufacturer.
All products have a natural composition, which is especially appreciated in the world of synthetic goods.
To demonstrate its firm position, the company even publishes catalogs using materials from artificially grown forest plantations.
Location 7. FABERLIC
Well, finally, our Russian company becomes the last favorite of my rating. Its founders were our compatriot entrepreneurs Alexei Nechaev and Alexander Davankovy.
At first, the company was referred to as "Russian Line", but in 2001, apparently deciding that this was not solid enough, it was registered as Faberlic.
To date, the brand has expanded to 20 countries, including Germany, Poland, Hungary and Romania. Faberlic considers developments based on perfluorunlerodes, that is, a collection of oxygen cosmetics for facial skin care, to be a unique feature.
Their annual turnover, according to today's estimates, is more than 250 million dollars.
Regardless of the company's rating, in my opinion, the ones that deserve the most attention are those that suit the majority of people who shop on the Internet, and which can be used as a main or additional direction, in parallel with one or another grocery business.
Among these, I include Cashback service Switips, the benefits of which I wrote right here on Telegraph.
I was glad to provide up-to-date and informative information and I really hope it will be useful for those who are interested in the direct sales system in MLM companies.
Stay with me, subscribe to updates, including the Telegram channel t.me/site and I promise to replenish the blog archives with fresh, and most importantly, necessary information.
P.S. I recommend paying attention to free training on Cold contact automation, which will help you create a System for attracting partners to your team on full autopilot online.
More and more people are involved. Network marketing reached its highest heights in Russia. The rating of companies in 2018-2019 clearly shows the development trend of such enterprises. But they decide to cooperate with them only indirectly, still considering such work as another pyramid scheme. Is this opinion justified?
We will try to understand all this in this article, with illustrative examples and facts.
The scheme of network marketing is quite simple. There is a company that produces a certain type of goods or receives wholesale products that need to be sold.
To distribute your product, you need workers - distributors who find potential buyers, conduct advertising (usually, they clearly talk about the functional features of the product) and take orders on the spot. They are found using a referral system - a chain where one employee offers profitable cooperation to others, and they, in turn, to a third.
The salary of a sales consultant depends on the share received from the sale of goods. The company benefits from the retail value of products, which exceeds store prices, but in this case, no funds are spent on advertising, on wages to sellers (rate). The distributor chooses for himself the level of earnings by selling the goods.
What this employee needs:
- A proven company that brings real earnings.
- Base of clients, due to which the percentage will go.
- Ability to convince and present a product.
- The desire to develop, since in the initial stages it will be quite difficult to stabilize earnings.
An additional incentive for the distributor is to receive a fixed income from involving other people in the business. Such a referral system allows you to receive a percentage not only from your sales, but also from the income of the invited employee.
Many such earnings are compared with a financial pyramid. But there are differences:
sales consultants do not pay upfront fees, which are required in the financial pyramid for dubious documents and agreements.
In this case, the sale of real goods is carried out, at inflated, but favorable prices for the population. This business operates legally and does not violate the laws.
How to start a network marketing business?
When choosing a job in the field of network marketing, an important aspect is a convenient marketing plan. Everyone chooses for themselves the option according to their needs. There are a large number of franchises for remote earnings in the domestic market: (cosmetic, tourist, legal).
The very first company related to marketing was Mary Kay, which began its distribution more than two hundred years ago.
Initially, the cosmetics company worked offline: it created trainings, brought distributors as part of the bonus program, and sold its products in different cities and countries.
But the network began to work not among the first. This was the first step in the development of such a business, and other brands began to equal Mary Kay.
Other companies are also actively promoting their product on the World Wide Web - Avon, Faberlic, Oriflame, NL And Amway. At the moment, they occupy a leading position in the ranking of successful grid companies in Russia.
How do you find the perfect network marketing business for you to work on?
Beginners should get comfortable in this business by attending various trainings, consulting with more experienced workers. Many companies create a step-by-step training system that allows everyone to move up the career ladder. In addition, MLM organizations at the first stages of training and work provide training material, video tutorials.
Brand
To test the reliability of the company, you can opt for start-up firms or give preference to already established franchises. , which only stands at the origins, can only recommend itself, develop, develop a client base in order to get easy money.
But to promote the brand, you should work on the name, distribution and advertising of products. Because people do not yet have an idea about the new product.
A solid, already established company also has its positive aspects.
The product has already been promoted, and it is sold with great demand. If the company has confirmed its name, then in the coming years it will not close. Among the minuses are the requirements for applicants for distributors.
Product quality
What commercial network companies produce must be of high quality and environmentally friendly. Since this type of business is distributed as word of mouth, any dissatisfied buyer can spoil the impression of it.
In addition, there are other criteria for evaluating products:
Limited shelf life. This is necessary so that there is a constant demand. If the product has a shelf life of more than a year, then the distributor will practically not be able to find an interested client.
Therefore, cosmetics, chemicals, perfumes, personal hygiene products, and household goods are considered ideal distribution options.
TOP 5 successful network marketing companies in Russia in 2018-2019
Oriflame
In addition to cosmetics, there is a Wellness line that guarantees health.
To receive a salary or a good discount, a consultant should achieve a turnover of at least 6 thousand rubles. A 20% discount is given at the first stage.
If the consultant reaches these 6 thousand, then the income from his structure is automatically calculated and submitted, with the release of the next catalog, 12% is returned upon the personal order of the employee.
From this we can conclude that a person who is going to build his marketing business, upon reaching the turnover, receives a total discount of 32%.
Interesting fact. The company owns five factories and a leather research institute. Scientific works are constantly published on the official website, there are personally patented formulas.
You can join the Oriflame team right now. Going by link, you leave a request and an experienced competent specialist will give you detailed instructions for cooperation with the company. In addition to this, you can count on round-the-clock assistance, support and free training.
The advantage of modern network marketing is that you don't have to leave your home to build your successful network business. Almost all work processes take place in the virtual space.
Avon
The marketing company started its work in 2004. And since 2010, it has been actively introduced into the network. To register as a coordinator and get the opportunity to invite people as referrals, build a business on their own, copies of documents are sent to the company on the official website, after which registration is carried out.
As pluses, one can name the minimum prices for purchases from 1.6 thousand rubles, since cosmetics are available to 95% of the population. Avon company guarantees a bonus program - 125 thousand rubles. But it is possible to get it if the coordinator recruits the first line of the catalog for 5 new active workers throughout the year.
The company has certain plans and turnovers, for failure to comply with which you can lose the opportunity to obtain qualifications. The company gives a discount on each product.
If the employee orders products for himself, then the discount is 15%, when the plan is fulfilled, the bonus reaches 32%. From this we can conclude that if an employee does not fulfill the plan for recruits, then he must independently fulfill the sales plan for them.
How to develop your network team
- Blogs. Before you start blogging on Instagram or other social networks, you need to develop a client base.
- Distribution of letters with advertising of production.
- Providing discounts and assistance in consulting on the city's website.
To receive your first income, you do not need to register an individual entrepreneurship, the transfer of wages is carried out on a card. The company rarely conducts trainings at the All-Russian level.
In each city there is an office of the company where you can turn for advice. The first line of recruiting has an almost endless plan. If the plan is not fulfilled, the company has the right to terminate the contract with the employee. There is no international sponsorship.
Faberlic
The company has been operating for about 20 years in the marketing market. The company began its activities in Russia, which consultants never cease to remind. Faberlic pays a bonus amount after the employee reaches a certain rank - Director.
Bonus 55,000 rubles are paid after the closing of this title. Mandatory turnover is the achievement of 50 points with the expectation that 1 = 80 rubles. The mandatory purchase should be 4000 rubles. The director reaches a turnover of 400,000 rubles.
The company contains a plan for recruiting the first line. Any Director level has a gap. If the consultant has 2 closed directors in the first line, then an additional growing group with a turnover of 1000 points is required to generate income.
If the super-Director does not have a personal group, then he is not given wages for this line of the catalog. This means that passive income is not possible in this case. If the plans are not met, then the cosmetics company may terminate the contract with the employee. There is a possibility of going abroad.
NL
Individual entrepreneurship registered in the Russian Federation. The company's products are - Energy Diet - expensive, but high-quality dietary food.
One of the few companies that cooperates with equally well-known marketing franchises, for example, Oriflame. Therefore, beginners have the opportunity to get advice about food, as well as cosmetics.
To receive wages, there must be a commodity turnover of 21 thousand rubles for the period. The company is quite profitable, despite the narrow focus and high cost.
Amway
The business of this network company operating in Russia in 2018-2019 is built on the sale of household chemicals, washing powders. There are negative sides. The newcomer pays a small fee to conclude an agreement with Amway.
The product is expensive and has a fairly long shelf life. Commodity turnover in the exchange of 10 thousand rubles. Some household product is consumed quickly, which allows you to find a sufficient number of buyers. The sale of household chemicals on the Internet is practiced. To do this, they show the capabilities of a particular product online.
Conclusion
Successful Russian network companies are located in a certain professional organization that has developed and established in practice, which is able to build a stable system to ensure the profitability of personal investment.
New hires should prepare for a slow but promising bottom line, as large sums in the first months are almost impossible to get. This is especially true for large companies where there is a lot of competition. Therefore, experience is needed in such a business and it is recommended to start with a small company, smoothly moving to global markets.