Is it easy to make money in network marketing, and what is needed for this - reviews from experienced people. Network marketing - is it worth it? Can everyone work in network marketing?

Irina Davydova

Reading time: 12 minutes

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The term “network marketing” implies the distribution of goods or services with the help of a well-developed and extensive network of distributors (approx. - independent representatives of a particular company).

Is SM (network marketing) a “pyramid”? , what are its pros/cons, and how does this system work?

How network marketing works - its pros and cons

What is the essence and how does network marketing work?

The point is simple: a person sells goods and invites other people to a similar position, from whose sales he receives interest. The more sellers he brings, the higher his earnings. Thus, a large network of sellers working for one organization is built.

The operating scheme of most network companies is usually the same (with minor differences in individual companies).

• During the interview you are told about job prospects. and “huge” opportunities (usually the opportunities are overestimated or greatly exaggerated). For example, about a solid income in the first six months of work.
• After registering, you may be asked to make a membership fee . It is worth noting that reputable network companies use exclusively legal schemes and do not require any contributions.
• Next, you look for and recruit new sellers , which are already registered through you. This is the main feature of SM.
• Profit (the difference between purchases and sales) comes to you after the sale of goods, which, as a rule, you have to buy with your own money. The profit also comes as a percentage of the sales of the people you recruit.

Network Marketing - Benefits

1. Saving money on advertising. The products of a network company are advertised mostly through word of mouth - direct contact between sellers and buyers. By saving on advertising, the market price of products is reduced and the distributor's income increases.
2. Purchasing effective and high-quality products , not available in regular stores.
3. Possibility of part-time or full-time work with a good income.
4. Free work schedule.
5. The amount of earnings depends directly on the time invested , human abilities and desire for high incomes.
6. Opportunity for your own business. True, not immediately, but after you recruit people, train them and develop your own recruitment system. And, of course, it won’t be possible without investments. The only question is their size.
7. Help from professionals. As a rule, in every network company, along with the products, a person also receives a personal “guru” who helps, trains, and mentors him.
8. No age restrictions. It doesn’t matter whether you’ve just turned 18 or are retired—everyone can earn money.
9. No college diploma required . Instead, you will need qualities such as communication skills, ingenuity, etc.
10. Availability of a “promotion” system (career growth).
11. No need

Network marketing - disadvantages:

1. Instability of earnings. Especially at first, when the work will resemble a part-time job.
2. Material investments. It's unavoidable. Even if they tell you the opposite, when accepting you into the ranks of the SM. The amount of investment will depend on the situation, company, product. Plus: the investment always pays off.
3. Selling products is not as easy as you initially think. Until you find your way to effective sales, you will experience a lot of negative emotions.
4. Not everyone will be successful. This point follows from the previous one. Much depends on your capabilities, abilities, experience, and learning ability. Someone will become successful, someone will leave this opportunity for a part-time job, and someone will leave altogether, muttering through clenched teeth: “You won’t earn anything here.”
5. You will work in the business, but you will not own it. Why? But because the products you sell do not belong to you. You will not be able to sell it as your own - for this you will have to develop your own product and open production.

Interesting job or financial pyramid?

Should you be afraid of working in a network company? What are the differences between SM and financial pyramids?

It is worth noting that SM has nothing in common with the notorious “pyramids”. The reputation of SM was considerably damaged, “thanks” to scammers who successfully disguised their companies as network ones.

How to distinguish a network company from a financial pyramid?

Signs of a “pyramid”:

• The idea is to attract a large number of people to collect as much money as possible into the pyramid and disappear.
• You make a profit for each person you invite who brings money to the pyramid.
• The company's product (service) cannot be sold on the open market.
• Consumers of products (services) are distributors only.
• It won’t be possible without investing your own money. The size depends on the scale of the pyramid. Moreover, with your own money you are not buying a real and high-quality product, but dummies that, at best, simply do not cause harm. And in most cases, you give your hard-earned money for “membership fees” or some “papers” that have value exclusively within the pyramid.
• Absence of any printed materials.
• By investing money in a pyramid, you only receive promises that “very soon” you will become rich, rich.
• In the pyramid they teach you to lie.

Signs of a legitimate network company:

• The idea is to attract a large number of people to grow the company and increase the earnings of distributors.
• You receive a percentage of the sales of people you invite to work.
• The company's products can be freely sold on the open market.
• Consumers of the products are ordinary buyers and distributors themselves.
• Investment is only for goods that you buy and then sell.
• Printed materials are usually present. At a minimum, product catalogs.
• By investing in SM, you receive a quality product and interest on sales.
• In SM they teach how to sell.

The most popular examples of businesses built using network marketing

The first of the first in SM were companies that appeared back in the 30s of the last century. They were engaged in nutritional supplements and sold only one product.

The most successful company in SM was the one that started in 1959 AMWAY. It was one of the first to go beyond the boundaries of selling the “1st product”, expanding the range of nutritional supplements with household goods.

Hello, friends. To those who are still going to school, I want to congratulate you on the beginning of the school year, and wish you excellent grades and wise teachers. Once upon a time, I also sat in my pants at my school desk and thought about when I would finally finish 11th grade, so that I could quickly get out of here. But now, after many years have passed, I would not mind sitting at a school desk and standing at the blackboard again.

In this article I would like to tell you about network marketing as a source of income. Probably many of you have come across network marketing or heard something about it.

Sometimes, networkers, in order not to scare off a client or potential company manager, begin to use terms such as network business, information business.

In English, network marketing sounds like MLM(Multi Level Marketing) or Network Marketing .

But no matter how they try to veil their activities with various words, they are quite easy to see through even in the first minutes of a conversation.

How I almost went to work in MLM.

Many, in search of additional or even basic income, scour the Internet for all sites with advertisements, hoping to find at least something suitable for themselves. And lo and behold, after a long search they find this:

Well, of course, it wasn’t this ad that interested me, although there was something similar. I found out what company this person represents and studied it. Although I'm not a supporter MLM, but at some point I took the bait.

Apparently bright pictures and laudatory reviews did their job. I seriously thought, what if this is all real and network marketing is no longer the same as it was yesterday.

But after a while you begin to see the light and understand that miracles do not happen and you begin to delve into the very essence of all this MLM systems.

Useful tips for beginners who want to make money on the Internet

What scared me off.

Well, first of all, after watching enough videos with stories from networkers, you understand that everything they say is nonsense. Although some of them can sometimes tell you something useful.

For example, in one of the videos of a successful networker, it was said that the best job is working in network marketing. You won't find a better job. Stop working for your uncle and start earning 50-100 thousand a month. But what’s most interesting is when his viewers asked what needs to be done to reach that amount, how much product needs to be sold. He replied, no, no, there is nothing to sell, just join my structure and I will explain everything to you in detail later. Suspicious isn't it?

When networkers say that they work for themselves, this is somewhat wrong. Yes, they may not go to work every morning and they will not be fired under the article. But indirectly, they still work for the company, bringing profit to it and to those managers who are above them. Their account may be blocked for violating any company rules and principles.

Therefore, those people who do not talk about the pros and cons of working in a company, or about real earnings, do not inspire confidence. Basically, I hear the same phrases “I will take you to earn 50-60 thousand in the first month”, “you will be a successful team leader”, but not words about what difficulties you will have to face.

I talked to several networkers and, apart from praise, I didn’t hear anything about the company they work for and how rich I will become if I go to work for their structure.

So that you understand what is meant by the word command or structure, which is what you can find in advertisements, I will give you this simple diagram:

As you understand, those who register in the system at the invitation of the company manager fall into his structure. Registration usually occurs using a code word or a special link that the MLM company manager gives you.

The manager who brought you into the system becomes your mentor.

A networker receives income in two cases:
1. Profit from the sale of goods.
2. Attracting managers to the company.

In an online business, it is quite problematic to sell goods yourself and make a good income from it. I noticed that many networkers are actively looking for managers to join their team and teach them how to sell. Of course, it would be good to recruit managers into your structure, train them and receive passive income without particularly straining. But you shouldn’t count on this, only a small part of the networkers will be at the top of the pyramid, the rest will have to be content with the crumbs that fall to them.

I noticed that MLM companies and managers who attract new networkers into their ranks only talk about how luxuriously you will live when you join their ranks. For example, some companies motivate their managers with various bonuses in the form of expensive cars and cash bonuses that they will receive based on their hard work.

1.No risk.
An important advantage of a network business, undoubtedly, is that it does not require large initial investments, which makes it accessible to everyone.
Typically, network marketing companies have a very small entry fee (from 300 to 1000 US dollars) to start your own business. For this amount, the distributor buys the Starter Set of Documents and company products for his own use and for sale.

2. Registered enterprise.

By signing a contract with a company, you receive a pre-registered enterprise where you are your own boss and subordinate. You do not need to hire an accountant, director, warehouse workers, or other staff, the company handles all this. The only thing left for you to do is build your own business.

3.Freedom.

Network marketing gives you freedom in everything - you work where you want, with whom you want, when you want, as much as you want. There is no boss and no subordinates to control. You form your own team and plan your own business.

4.Business for everyone.

Network marketing can be done by anyone; regardless of age, gender, education, nationality, religion. In this business, everyone can earn as much as they are actually worth, while starting with a small amount.

5.Unlimited income.

In the first year of operation, many of Agel's distributors achieved monthly income of more than $100,000. In the United States, 20% of dollar millionaires made their fortune through network marketing. The more you work in one company (in terms of time), the more you earn. Many people love network marketing for this reason.

6.Personal growth.

Personal growth is the basis of long-term success. Practice shows that absolutely anyone can organize a network business if they apply the learned rules and techniques in practice. But in order for the business to continue to grow dynamically, for new leaders to emerge, it is necessary to constantly develop, and not only professionally, but personally.

There are quite a lot of events, seminars, and trainings held in the network business that promote personal growth.

7.International business.

This business can be built in different countries of the world, since a contract with a network marketing company allows you to sign people living in other countries. Many people build their multi-thousand organizations by traveling around the world. Sometimes, unbeknownst to you, your business can spread to many corners of the world, since in your network there will always be people who have relatives, acquaintances or friends living in different countries of the world.
There are many business opportunities available today, but how many of them have high earning potential with the potential to grow internationally.

8. Communication.

There will always be people from different professions in your organization. By communicating with such people, you will always have new information that will expand your horizons. This is one of the advantages of network marketing, when a person can communicate with a large number of people from different countries, different religions, and different professions.

9. Making friends.

Traveling around countries, telling people about this business and helping them take their first steps, you will make friends in different parts of Planet Earth. As John Kalench said, “The most important thing in network marketing is to make a million friends.”

10.Career.

In the network business, you can make a career in one or two years and reach an income level of several thousand dollars monthly. There are no limits to career growth, because for those who reach the top of the career ladder, the company creates a new peak, and thus new prospects open up. Therefore, the prospects for growth and development in the network business are limitless and are determined only by your desire for success.

11.Training system.

But, in order to rise to the pinnacle of success, you first have to become a student. Don't miss schools, presentations, seminars and company events and one day you will become an MLM Master. The training provided by network companies is practical and provides answers to pressing life questions that arise in every person.

12.Partner support.

MLM is a very good opportunity to work together, travel together, solve any problems together. “We can't succeed alone,” said Jim Rohn. Network marketing is a team business, and the success of any team depends on the success of everyone. Your sponsors and distributors are business partners and they will always support you at different points in your life.

13. Recognition.

One of the indisputable advantages of a network business is a well-developed system of recognition and rewards for distributors. It is a very pleasant process - receiving awards in front of an audience of thousands. Most people in the world want to be recognized, and when this happens, they are even more empowered to build their own businesses.

14.Ability to work with family.

Network marketing is a unique business that allows the whole family to work. Many married couples working on the same contract achieve greater success than those who work alone.

15.This is interesting.

You can't even imagine how much fun you can get working in our business. And it’s great that the longer you work in network marketing, the more interesting it becomes for you! Sometimes it is very interesting to watch how people change when they start earning more than they dreamed of.

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

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

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

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

What is MLM?

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

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

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

A little history

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

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

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

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

Learn to distinguish

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

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

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

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

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

Assessing prospects

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

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

Rating of MLM companies

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

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

Education

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

Receiving a profit

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

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

Action plan

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

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

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

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

Sales methods

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

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

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

Knowing your own character

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

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

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

Is network marketing worth getting into and getting involved with?

You will find the answer to this question and personal opinion in this article.

Greetings, my future friend! My name is Alexey Nesterov. I am the leader of one of the network companies, namely the company. I started this business absolutely from scratch and achieved good results in this interesting business.

I worked as an ordinary loader, and today my income with my wife is more than 150,000 rubles. per month (at the time of writing), we drive a new car from the company, don’t go to work, travel and live a free life.

And I can definitely answer your question, “Is Network Marketing worth it?”

Don't believe what is written? Look at how I withdraw my income for one of the months.

Let me start with the fact that network marketing is not when you pack tons of your company’s products into your bags and go out on the street, go shopping and sell it to poor, tortured sellers.

Network marketing is a referral business. Those. Your company provides you with marketing, logistics, products,
accounting and other technical issues. And you, using the training that the company also provides, promote these products on the market. It's simple!

So is it worth starting cooperation with any network company? I will answer you “YES”, because in today’s situation this is the only option for an ordinary person without influential acquaintances and rich parents to make his way in life and start earning money!

In any case, just think - do you have at least a million rubles to open your own business? Buy equipment for your business, give kickbacks to officials, etc.?

Do you have millions of rubles to start investing? Buy several apartments in Moscow and rent them out? If yes, then you are a good investor. If not, then alas...

I just ask you very much - do not get involved in financial pyramids and pseudo-investment of one hundred rubles with the return of one hundred thousand dollars! This is all a real deception! There is simply no such thing as easy money! To make money, you must first work hard. That's what we do in network marketing.

We first work to create a structure. We invite people and tell them about the opportunity to make money in the company. And after we have built it all, the structure begins to work for us and bring us money. This is real business!

If you have any questions about network business and generally doubt it, you can either ask me questions on the social network VKontakte. Well, add me as a friend, because in our business it is beneficial to have a large circle of acquaintances!

And you can also find out in detail, if, of course, you have not yet chosen it for yourself!

In any case, I wish you good luck and the right choice!!!