Top 5 network companies. Network marketing: companies in Russia - list

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 nameMLM 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 "newbies" 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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  • Greetings! My heart has been hurting for years. I have also been taking cardamom for many years. Recently, it happened that I began to take it three times a day. It has a lot of side effects, you can even die from them.
    When I came to Aklon, I bought the drugs, Viorgon 01 and 10. Today is the second month I have been taking them. The attacks have stopped. I think they are truly miracle drugs. For the first time, when I saw these bubbles, I looked at them skeptically, I think what could be from them?
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    Marketing plan

    Colleague, We are happy to greet you!

    We hope you are interested in the opportunity to start working in a new network marketing company. After all, the construction of a network business with AKLON is incomparably faster and easier than in the whole list of other companies represented in the ratings of MLM companies in Russia and the world. And incomes are much higher and more stable.

    Payments to the MLM network up to 60% of turnover."Development Bonus" is credited in real time.

    You will like the terms of cooperation with the TOP network marketing company AKLON:

    1. AKLON - young MLM company established in 2015 with the support of Russian Academy of Sciences. At the same time, products are gaining popularity so rapidly that it is possible to create a structure with an income of tens and hundreds of thousands of rubles within a few months;
    2. No need to sell. The partner does not have to endlessly convince anyone about how MLM products are better than similar ones that can be purchased at other companies or stores.
    3. Products have no analogues. There is simply nothing to compare her to. And here is the rating of MLM products among consumers and they convince any skeptic.
    4. turnover is not reset with the start of a new month. Achieved status, and with it the percentage level, fixed forever.
    5. The company, in accordance with the network marketing plan, pays partners up to 60% of the turnover, which allows you to receive from the very beginning decent payouts.
    6. AKLON supports each Partner with a "Development Bonus" in real time. Funds are credited to the account immediately after registration of a new Partner in your MLM structure.
    7. "Turnover Bonus" and "Leadership Bonus" are paid monthly until 5th of the month following the reporting one.

    This is a good, successful and best network business.

    The AKLON marketing plan involves two types of participation:

    Consumer Partner

    To become a Consumer, go through a simple and free.

    Without investing, You will get the following features in MLM:

    To become a Partner, you also need to purchase a "Business Pack" worth r.5,500
    Of which, r.4,800 is a one-time purchase of products and r.700 is a registration fee.

    Thus, You will get the following features And:

    1 Purchase the Company's products at the Affiliate price with a 33% discount on the entire product line
    2 Build your ownth MLM structure Build your own MLM structure
    3

    Receive "Development Bonus" payments:

    r.250/$4 from each affiliate registration

    in 1-2-3 levels

    Receive "Development Bonus" payments:

    r.500/$8 from each affiliate registration

    in 1-2-3 levels - "Bonus of development";

    r.250/4$ from each affiliate registration

    at 4-5-6-7 levels - "Development Bonus"

    4

    up to 21% of the turnover of the structure in three levels

    Receive "Bonus Turnover" payouts

    up to 35% of the turnover of the structure in seven levels

    5 -

    Receive Leadership Bonus payments

    up to 45% of the turnover of the structure

    6 - Get "Bonus Abundance"
    7 -

    Receive awards "For the stability of success"

    Acquisition of the "Business Pack" (one-time payment in the amount of r. 700 and the purchase of products in the amount of r. 4,800) transfers the Consumer to the status of a Partner, expanding the opportunities for making a profit from network marketing - all types of turnover bonuses and bonuses become available.

    "Development Bonus"

    For the registration of Partners in levels 1-2-3-4-5-6-7 of your MLM structure, AKLON credits your account in "real time" with:

    • r.500/$8 - for registration in 1-2-3 levels with any number of partners in the first line;
    • r.250/$4 for registrations in the 4th level, with 5 or more partners in the first line;
    • r.250/$4 for registrations in the 5th level, with 7 or more partners in the first line;
    • r.250/$4 for registrations in the 6th level, with 9 or more partners in the first line;
    • r.250/$4 for registrations in the 7th level, with 11 or more partners in the first line.

    "Bonus Turnover"

    "Turnover Bonus" is an accrual in the form of a fixed percentage of the amount of purchases of all members of your structure (Consumers and Partners) to a depth of 7 generations of network marketing in the following amounts:

    Levels of your structure

    from the turnover of the structure, if you are a consumer

    Fixed interest payments

    from the turnover of the structure, if you are a Partner

    1 10% 10%
    2 7% 7%
    3 4% 4%
    4 - 4%
    5 - 4%
    6 - 3%
    7 - 3%

    "Leader Bonus"

    "Leader's Bonus" is equal to the difference between your interest rate and the rate of your first generation partner, according to the volume of the group turnover (GR) of which the bonus is calculated, multiplied by the GR of this participant for the reporting month.
    At the beginning of your activity, only the Accumulative Group Volume (CGO) affects the growth of the Rate, these achievements secure guaranteed Rates for you to receive the "Leadership Bonus".
    After reaching the Status of "Director", you are assigned a Rate of 15%, and now, to estimate the size of the monthly "Leadership Bonus", the results of the monthly turnover of your MLM structure, expressed in monthly Group Turnover (GRT), are taken into account. 1 point = 2 rubles.

    Status in MLM

    Bid, %

    NGO, points

    GO, points

    Consultant 6 25 000
    Manager 9 100 000
    Top manager 12 300 000
    Director 15 750 000
    Director 1st rank 18
    100 000
    Director 2 rank 21
    300 000
    Director 3rd rank 24
    750 000
    Director 4 rank 27
    1 650 000
    Rank 5 Director 30
    3 300 000
    Director 6th rank 33 6 000 000
    Director of the 7th rank 36 10 000 000
    Rank 8 Director 39 16 000 000
    Director 9 rank 42 24 000 000
    Rank 10 Director 45 34 000 000

    "Bonus Abundance"

    "Bonus of Abundance" is a special accumulative fund, the funds of which are spent on paying for the purchase and rental of housing, the purchase, rental and operation of a car, tours and travel of all MLM Partners with a status of at least "Director of the 3rd rank".
    The "Bonus of Abundance" fund receives funds from the turnover of seven generations of the Partner's personal structure in the amount of 1,000 rubles for every 50,000 points of turnover.

    Council Award "For the stability of success"

    Every time a Partner with the status of "Director" maintains the achieved result in the seven generations of civil defense, specified in the conditions for receiving the "Leadership Bonus", during the "Stability Period", the company rewards this member of network marketing with a special memorable gift and a valuable prize.
    For reaching a new level, the participant also receives a special badge as confirmation of the universal recognition of his professionalism and success.

    The "Stability period" for different Statuses in MLM is different and is:

    1. For Directors of 1, 2, 3 ranks - one month.
    2. For Directors 4, 5, 6 ranks - three months.
    3. For Directors 7, 8, 9, 10 ranks - six months.

    In addition to the distinctive badge for different ranks achieved, valuable gifts, paid trips, solemn banquets, special prizes are attached as decided by the AKLON Council. The Consistency of Success Award will only be awarded once, upon the first achievement of a new Status.

    Advantages of network marketing company AKLON:

    1. AKLON - fast growing MLM company, representing unique innovative products created on the basis of the latest developments in the field of bio- and nanotechnology with the support of Russian Academy of Sciences;
    2. You can become a Partner of an MLM company without investing your own money;
    3. With the beginning of the development of your structure, you start earning immediately;
    4. The "Development Bonus" reward is paid in real time.
    5. The company's products are unique. These are not the next "completely different" washing powders, dietary supplements, vitamins or perfumes. Millions of people around the world have already been convinced of the effectiveness of the basic product, which in translation is “Liquid that regulates life”. The action of Flurevites is based on their unique ability to stimulate restoration and repair in organs and tissues altered as a result of any pathology or aging, as well as to activate cellular sources of regeneration.
    6. Having started, you will see that the MLM business strives for self-expansion, that is, it builds itself.
    7. Created by MLM partner structure turnover is not reset with the start of a new month. The achieved status, and with it the percentage level, are fixed forever.

    And the most important thing. Our products really help people!

    Marketing plan of the company "ACLON"

    International marketing plan of the company "ACLON"

You can earn money in different ways. Someone is used to waking up every morning to the sound of an alarm clock or a smartphone signal and quickly getting ready, fearing to be delayed on the way to work - after all, you need to get there no later than a certain hour. Someone prefers shift or rotational options, which give the opportunity to relax after several hours (days, months) of hard work. Still others like to work on the Internet, which involves a minimum of personal interaction with strangers.

But what to do if you don’t feel like going to a regular job, but without human communication it’s boring? There is a way out: this is the so-called MLM business, which involves the sale of goods or services from person to person, without a number of intermediary dealers. Theoretically, this should lead to a reduction in product prices and an increase in its competitiveness compared to the store. Is this really so and is it work in a network company, let's try to figure it out.

Network marketing - companies in Russia (list)

First of all, you need to understand the basic terms and clarify the very principle of the functioning of network companies, since in Russia it is not too different from the world.

Network (affiliate) marketing- this is a way to directly sell products "from the manufacturer to the final consumer", which does not involve the introduction of intermediate links (retailers, resellers and specially hired sellers) into the chain.

MLM is a tracing paper of the English abbreviation MLM: Multi-Level Marketing (multi-level marketing). “Levels” in this case are not retail, but structural formations: no matter how complex the partner business network is, the goods still come from the seller to the final buyer without additional margins.

The principle of building a “team” of network companies is approximately the same and not much different from a financial pyramid: each new participant must not only purchase goods from a recruiter for a certain amount (and then sell it on their own), but also fulfill the plan prescribed in the rules of the structure, already himself attracting new distributors to the network. How successfully a new team member copes with these tasks will depend on his rating and the possibility of further promotion, and sometimes the right to continue working in the company.

Important: since Russian legislation does not regulate the MLM business in any way, each network company has the right to establish for distributors its own degrees of distinction, development and sales plans, terms of trade, and even regulate their behavior when communicating with customers. It is useless to argue with the requirements of the "employer": a newcomer who could not get along in a team can only leave it - often with losses incurred as a result of the purchase and the impossibility of selling the goods.

That is why network marketing in Russia (and in the rest of the world) can hardly be called an ideal start for a young entrepreneur. A person who has start-up capital and has an idea of ​​\u200b\u200ba "airbag" is better to consider other passive income schemes. Perhaps it will be a little longer and a little less profitable, but it will not remain at a serious loss.

The benefits of a network business include:

  1. Free daily routine. Each seller, regardless of the accumulated rating and current status, is aimed solely at the result. You can wake up at any time and arrange a weekend for yourself when you want: the main thing is to continue communicating with the wards within the structure and customers and fulfill the plan.
  2. Direct correlation between profit and effort. Unlike a fixed salary job, participating in network marketing gives the distributor the opportunity to sell exactly as much product as he can. Therefore, by spending a little more effort, you can get more substantial income - and vice versa. The same applies to recruiting activities: for attracting new members beyond the plan, the distributor receives additional points, bonuses or cash payments. The conclusion is obvious: the more communicative and resourceful the consultant, the more he can earn.
  3. Various bonuses. Depending on the regulations of the network company, this can be business trips abroad, cash bonuses or material rewards. However, since Russian legislation does not regulate incentive payments, like other aspects of the activities of grid companies, a newcomer should find out in advance whether they are provided for in a particular structure - otherwise, no matter how actively he works, he may be left with nothing.

These are the main advantages of network marketing, but it also has disadvantages:

  1. Complete lack of guarantees. The distributor works in the company at his own risk and receives exactly as much as, according to the internal regulations, he has earned. There are often cases when an additional commission is charged from the seller's earnings, sometimes reaching 40% of the amount. This practically eliminates all tax liberties associated with the lack of state regulation of the network business. In other words, even if the seller does not pay money to the state, he will share earnings with the structure itself. And no one can guarantee him any significant profit.
  2. Probability of being in the red. As already mentioned, each distributor must, in order to start and continue work, not only engage in recruiting, but also regularly (once a month, quarter, and so on) purchase products that are supposed to be sold to the final consumer in the future. If he cannot do this, no one will return the money to the distributor, and all purchased goods will remain with him. And since the plan must be carried out, a person who wants to stay in the system will have to make new purchases in the future - and so on indefinitely, until the start of successful sales or until complete ruin.
  3. Lack of state guarantees. This feature of the network business was discussed earlier: a distributor engaged in the field of MLM is not considered officially employed, does not have the appropriate rights and is completely defenseless against the “employer”.

Perhaps the low employment of the Russian population in network marketing (as of 2018, this is only 7% of the working-age population) is associated precisely with these disadvantages. Nevertheless, a fan should try himself in this area as well - the main thing is to find a company with adequate requirements and not get too carried away with purchases and “moving up” on an ephemeral career ladder.

Below is a list of the fifteen most popular network structures in Russia, suitable for both beginners and professionals in the field of MLM.

Avon

The first network company on the list, founded, like most others, in the United States and came to Russia back in 1991. The scope of activity is the sale of cosmetic, perfumery and, to a much lesser extent, hygienic and souvenir goods.

Features of cooperation with Avon:

  1. To start working in a network company, you must register as a coordinator. Already at this preparatory stage, the future team member will face difficulties: he will have to send the necessary set of paper documents to the company's office (fortunately located in Russia) and wait for them to be processed. Only after that you can start working.
  2. A significant advantage of the network company opening the list is the low cost of products and small amounts of mandatory purchases. As of 2017, this is only 1600 rubles.
  3. A coordinator who successfully sells goods and regularly (with the release of each catalog, that is, approximately once a quarter) attracts at least five new sellers can count on a bonus - a lump sum payment of 125 thousand rubles.
  4. For each member of the team there are discounts on products:
    • 15% - when purchasing cosmetics and perfumes only for yourself;
    • 15–32% - when the above plan is fulfilled.

Important: Avon pays coordinators remuneration directly to a bank card, which is undoubtedly very convenient. On the other hand, it is this network company, at least in Russia, that “takes off” from each transfer from 20% (for beginners) to 40% (for advanced sellers) of earnings. In addition, the structure completely lacks vertical development, and all the achievements of the coordinator can be transferred to another seller upon unilateral termination of the contract with him.

Faberlic

The second chain company on the list, which also sells cosmetics, perfumes and related products. The structure was founded in Russia in 1997 and since then it has been systematically and steadily developing, without showing, however, any special miracles.

Features of cooperation with Faberlic:

  1. To get started, you do not need to send any documents to the office of the network company.
  2. The calculation is made in points: one point as of 2017 was equal to 80 rubles.
  3. Mandatory monthly turnover - 50 points, that is, 4000 rubles. If this requirement is not met, the consultant may be deprived of the bonus or excluded from the structure.
  4. Vertical growth is envisaged: in particular, to obtain the title of “Director”, it is necessary to achieve a turnover of 5,000 points, that is, 400 thousand rubles. The successful seller will be paid a bonus of 55,000 rubles.
  5. The possibility of passive income is completely absent: no matter what stage the consultant reaches, he is still obliged to fulfill a regular sales and recruiting plan.

Among the advantages of Faberlic is the absence of an entrance fee. One of the most unpleasant disadvantages is the lack of business trips abroad and material incentives (only cash bonuses).

Art Life

This network company, third on the list, is also from Russia. It was established in 1997 and initially dealt with the sale of bioactive supplements (BAA), healthy food products (in particular, soluble jelly) and cosmetics. Despite the extremely successful start of the project, over time, its growth began to slow down; Today, Art Life, not one of the leading Russian network business structures, continues to stay afloat, bringing a stable income to both the founders and ordinary distributors.

Features of cooperation with Art Life:

  1. A beginner can register as a privileged client. In this case, he will only need to purchase a discount card worth 150 rubles, giving the right to purchase the company's products with a fixed 30% discount. He no longer has any obligations at this stage: you can remain a buyer for as long as you like, or you can move into the category of distributors (business partners).
    • This network company provides three options for cooperation:
    • « Smooth start» - acquisition for the purpose of further sale of goods for 50 points (about 3,000 rubles);
    • « Fast start» - purchase of products for at least 100 points (about 6,000 rubles, respectively);
    • « Leader start"- the amount of the first purchase is greater than or equal to 400 points (about 24,000 rubles).
  2. In addition, a monthly sales plan has been developed for participants in the network business - at least 50 points (all the same 3,000 rubles). For the bottom three steps of the company, it is possible to take a break from work for three months.
  3. Sales are conducted individually or in a team. In the first case, the distributor receives a 10% commission on sales; in the second (for the senior in the group) - up to 15% of the personal turnover and 5% for the sales of each junior consultant.
  4. One of the highest levels in this network marketing is "Director". In this case, the group turnover must be at least 500 points per month and a total of at least 4,000 points. The income of the "Director" is 35% of the personal turnover, 20% of the sales of each of the "Masters" of the group and 25% of the turnover of each consultant.

The main advantage of a network company is a well-established system of remuneration and compensation.

Amway

The fourth network company in the list, founded in the USA in 1952 and first appeared in Russia more than half a century later, in 2005. Field of activity - the sale of household chemicals and items for the care of the house (apartment).

Features of cooperation with Amway:

  1. To start working in the network business, you must pay an entrance fee of 5,000 rubles.
  2. Mandatory monthly turnover - 200 points (as of 2017 - about 10,000 rubles.
  3. Vertical growth is possible, but it is greatly hampered by the high price of the product and the complexity of its sale.
  4. The presentation of products, according to the requirements of the company, is carried out right at the buyer's home: a consultant can offer to wash something, remove a difficult stain, and so on.

The indisputable advantage of a network company is the quality of the goods sold. On the other hand, they are not cheap, so for many residents of Russia they remain inaccessible.

Oriflame

The fifth company on the list, founded in Sweden over 50 years ago and came to Russia in 1996. Realized production - cosmetics and bioactive additives (BAA).

Features of cooperation with Oriflame:

  1. There is no entrance fee for participation in the network business.
  2. Mandatory monthly turnover - 150 points, that is, about 6,000 rubles.
  3. Discounts for consultants - up to 32% for the next personal order after the next implementation.
  4. Award for reaching the level of "Director" - $ 1,000, "Golden Director" - $ 2,000. To obtain a director's title, it is necessary to sell goods in the amount of 250 thousand rubles a month.
  5. A network company consultant may not engage in recruiting at all, without losing income.
  6. The income of the "Golden Director" and the higher levels is passive, amounting to 5% of the amount of sales of the team he created.

The network company holds monthly foreign conferences for employees, including newcomers. The business can be inherited or sold to a third party.

TianDe

Sixth on the list is a joint Chinese-Russian company founded in 2007. Sales area - cosmetics, perfumery, healthy food, dietary supplements, souvenirs and bijouterie.

Features of cooperation with TianDe:

  1. You don't need to pay anything to start working in the network business.
  2. Sales are calculated in points (the approximate rate is 50 rubles for 1 point).
  3. The consultant receives only 50% of sales.
  4. Vertical growth up to the level of "Diamond Director" is possible.
  5. There is no passive income at any stage of the career ladder

Since the company is relatively young, there are rather modest incentives for distributors of any level: discounts on personal purchases up to 24% and cash bonuses. A member of the TianDe team should not count on foreign business trips in the near future.

Herbalife

The seventh network company on the list is one of the most famous in Russia and the CIS countries. Founded in 1978 in the USA, came to the Russian Federation at the end of 1994. The scope of activity is the sale of products for a healthy diet and getting rid of excess weight, as well as cosmetics.

Features of cooperation with Herbalife:

  1. To get started in network marketing, you need to buy a basic distributor kit.
  2. The distributor of products receives 25% of the sales made by him.
  3. The next step is the supervisor. His income is already 50% from retail sales, 25% from wholesale, plus a commission of 5% for each distributor.

The main disadvantage of working at Herbalife is the high level of competition and, consequently, the difficulty in selling the same type of product. In addition, products that are of really high quality are quite expensive and therefore have little demand in the territories of the countries of the former USSR.

Mary Kay

Eighth in the list is a network company established in 1960 in the USA and in 1993 "brought" to Russia. Objects of trade - cosmetics and perfumery.

Features of cooperation with Mary Kay:

  1. Only adult women can work in the network business.
  2. A beginner needs to purchase a starter kit, the cost of which is regularly reviewed.
  3. You can earn income both directly from sales, and from participating in presentations and attracting new consultants.

An additional opportunity for those who do not want to participate in network marketing is to purchase a loyalty card, which entitles them to a discount of up to 40%. Bonus - free training in makeup and sales techniques.

Vorwerk

The ninth in the list and the oldest network company, originally from Germany. Year of foundation - 1885; appearance in Russia - 2005. Field of activity - sale of equipment for the kitchen and floor care.

Features of cooperation with Vorwerk:

  1. A beginner is required to undergo free training.
  2. Refresher courses are held regularly.
  3. Vertical growth is possible.
  4. The consultant may choose to engage exclusively in direct sales without recruiting new salespeople.
  5. Floating scale of percentage due to distributors for each sale.

Vorwerk transfers earnings directly to the consultant's bank card without charging any additional commission.

Natura Cosmetics

The tenth network company in the list, founded in Brazil in 1966 and came to Russia in 2008. The products sold are cosmetics and perfumes (more than 1000 items in total as of 2018).

Features of cooperation with Natura Cosmeticos:

  1. Entrance to the network business is free, as is the initial training.
  2. Additional discounts, bonuses and cash bonuses are provided for each consultant who copes with the sales plan.
  3. Sellers of the first and second stages - consultants and "Advisors" - receive a percentage of each sale.

The schedule of the product distributor is completely free: he can work when it suits him, as well as take small “vacations”.

Siberian Health

The eleventh grid company on the list, founded in Russia in 2015. The subject of sale is healthy food products and "ecological" cosmetics.

Features of cooperation with Siberian Health:

  1. You can start working without a down payment.
  2. A complex system of points, discounts and incentives, as well as deductions for not meeting the monthly plan.
  3. Every month, the consultant is obliged to buy (for himself or for the purpose of selling) products for 100 points, that is, about 6,000 rubles.

The main disadvantages of this network marketing project are the high cost of products and huge internal competition: it will be extremely difficult for a beginner to break through and start earning any serious money at Siberian Health.

Agel

The twelfth in the list is the network company Agel, founded in 2005 in the USA and almost immediately came to Russia. The product being sold is natural edible gels from berries with the addition of fruits and herbs.

Features of cooperation with Agel:

  1. The possibility of earning income both from personally recruited distributors, and from the "first generation" of sellers invited by them - the so-called quadruple.
  2. Due to the technical features of the project, to enter the business, you need to pay from 450 to 1300 dollars, with the emphasis on the most expensive option.
  3. Each month, the consultant is required to purchase products worth at least $120.
  4. Beginning distributors receive only 3% of sales.

The company is primarily suitable for experienced network marketing professionals with the appropriate skills and capital to enter the business. Among other things, it will be difficult for a newcomer to break through due to strong internal competition.

green world

The next company, thirteenth on the list, was founded in China in 1995, and appeared in Russia in 2011. The scope of activity is the distribution of products for maintaining health and taking care of the home.

Features of cooperation with Green World:

  1. The consultant is obliged to purchase goods at least once every three months. The acquisition amount is not fixed.
  2. An active distributor must purchase at least $100 worth of merchandise quarterly.
  3. There is a flexible system of discounts and incentives for a successfully completed sales plan and attracting new distributors.

Despite its long-standing presence in the Russian market, this network business is still little known and is not developing as actively as the previously mentioned TianDe.

Vitaline

The fourteenth network company on the list comes from the United States. Year of foundation - 1994; year of "arrival" in Russia - 1999. Products sold - cosmetics, bioactive additives and healthy food products.

Features of cooperation with Vitaline:

  1. In addition to network marketing, the company actively cooperates with Russian pharmacy chains and online stores, which greatly aggravates internal competition.
  2. The newcomer automatically receives a 30% discount on products.
  3. Every month you need to purchase a product for at least 45 points (about $ 90).
  4. With the growth of turnover, the premiums for the distributor also increase - from 10% to 32% of the monthly sales volume.

The disadvantage of the company is the high cost of products, which makes it difficult to sell them in Russia and the CIS countries.

Zepter International

The list is completed by an Austrian network company founded in 1986. In Russia, it appeared twenty years later, in 2007. The scope of activity of the structure is the sale of kitchen appliances and utensils, elite household chemicals, cosmetics, jewelry and even jewelry.

Features of cooperation with Zepter International:

  1. Beginners take a free course.
  2. Thanks to a well-established network marketing scheme, competition within the company is minimal.
  3. A consultant with minimal sales receives only 18% of the total cost of products sold; the maximum stipulated share is 25%.
  4. Vertical growth and creation of own substructure is possible.

Due to the high cost of Zepter products, they are quite difficult to sell: the business is suitable for professionals, while it will be difficult for a beginner even after initial training.

How to choose a network company for cooperation?

The ideal network company should meet the following requirements:

  1. First of all - to correspond to the interests and abilities of the seller.
  2. Engage in the sale of goods permitted for free circulation on the territory of the country.
  3. To offer quality products that are safe for the health and life of customers.
  4. Be present on the market for at least 5-10 years.
  5. Have a well-thought-out marketing plan that is beneficial for the distributor, as well as a flexible system of discounts and rewards.

Advice: it is better for a novice seller to choose an MLM business with little internal competition and a low entry threshold: this will help not only to avoid possible disappointments, but also not to regret too much in case of termination of cooperation about wasted money.

Summing up

It is real to make money in the field of network marketing: for this it is enough to have ingenuity, sociability and a small starting capital, as well as to be internally prepared for possible failures.

A novice direct sales agent should not invest all the money in the initial or subsequent purchases, as well as overly trust superior colleagues. This is how, remembering caution, he will be able to protect himself from ruin and build a worthy career in the network company of his choice.

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

AmwayNL InternationalHerbalifeFaberlic
residentUSA, 1959Russia, 2000USA, 1980Russia, 1997
Price policyDistributor pricesingle pricedistributor pricedistributor price
price, discount %discount from 15 to 23cash-back from 10 to 34discountup 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.ru230 / 53 13 / 50 68 / 61 82 / 89
group volume8% - VAT4-21% 1- 5 % no data
Mentor BonusNoyes, 1000 rub.Noet. difference between prices.
popularity
in Yandex
85079 160498 18400 191165
office, logistics16 offices.270 offices.no data40 offices.
All companies have different approaches, it is difficult to bring them to a common denominator, so specify the information about your companies in the comments. Your activity will allow you to change positions in the ranking!

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:

  1. Mary Kay and Avon have no place for men;
  2. U, Herbalife and Tienshi - there is no mission on the Russian-language site;
  3. 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;
  4. 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 product. This business scheme has three serious flaws:

  1. 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;
  2. 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;
  3. 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 CompanyPosition in the ranking
NL International1
Faberlic2
Mary Kay3
Siberian Health4
LR5
Avon6
Amway7
Oriflame8
Tienshi9
Herbalife10
You can get the full calculation methodology by subscribing to the news!

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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Alexander Kaptsov

Reading time: 11 minutes

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The first network companies entered the Russian market in 1993. At that time there were no more than a dozen of them. Over time, the business expanded by attracting new people, and today the list of network companies includes about 500 organizations. For many people, network marketing has become the main form of income. Some are attracted here by a free work schedule, others by regular communication with people, others are happy with the opportunity for rapid career growth, and, of course, with monetary rewards. Currently, over 5 million distributors operate throughout Russia, with a fairly extensive network of 20 million customers.

7 main criteria by which network companies are evaluated

Deciding where to go in network marketing is not an easy task.

Therefore, first of all, you should pay attention to the main parameters by which network companies are usually evaluated.

  1. Suggested Product. It should be safe for human health and affordable. Its application must produce results.
  2. Company age. It is best to conclude an agreement with an organization that has been on the market for at least 5-6 years. Firstly, no one will last that long, and secondly, as statistics show, approximately 80% of network companies cease their activities before the expiration of the first 5 years.
  3. Marketing plan. It is desirable to compare it with the plans of other companies, paying special attention to compensation payments through the network.
  4. Distributor training. It should be free, accessible and professional.
  5. Company fame. To build an international business, a company must have a structure in at least 3 countries.
  6. Legality of the company. The presence of a legal status in the country where the distributor is going to work, and the official website on the Internet indicate that it is possible to cooperate with the company.
  7. Strong leadership team. The success of the entire team largely depends on the personal qualities and capabilities of leaders.

Independent rating of grid companies in terms of sales in 2015

No. p / p Company name A country Sales volume in Russia (%) Sales volume in the world
1 Amway USA 8,1 $10.7 billion
2 Avon Products USA 28,8 $8.9 billion
3 USA 3,0 $5.0 billion
4 Mary Kay Inc. USA 4,9 $4.0 billion
5 Vorwerk & Co. KG Germany No data $3.8 billion
6 Natura Cosmetics SA Brazil No data $3.2 billion

Brief introduction to networks

This international corporation headquartered in Michigan (USA) has been successfully operating in the sales market for over 55 years. Amway branches are located in 80 countries of the world, including Russia (since March 2005).

Consumers are offered over 450 items of high quality health products.

What are the characteristics of the company?

  • By purchasing products at Amway at wholesale prices, the distributor retails it at a 30% markup. These percentages form his income.
  • For large volumes The participant receives an additional reward for personal purchases.
  • Inviting to the team new distributors or consumers of products, the distributor receives a reward in the form of a reduction in interest on the cost of goods.

Having achieved significant success in sales, a person can live on the interest transferred by Amway to his personal account.

Avon has over 120 years of history. More than 5 million distributors cooperate with it in more than 100 countries of the world. In Russia, the first representative office of the company appeared in 1995.

Avon products are more focused on the female audience, offering lovely ladies perfumes, cosmetics, jewelry and various accessories.

Distinctive features of the company

  • Cooperation as a VIP client. Free registration and the opportunity to purchase products with a 30% discount. At the first order and further the participant receives gifts.
  • Cooperation as a Coordinator. When attracting new representatives, the coordinator, in addition to the already existing discount of 30%, also receives 12% of the sales income of his group. There are bonuses and incentive programs for coordinators.

Despite the fact that the company is only 35 years old, its products are widely distributed in 92 countries around the world. The products are aimed at people who want to lose weight and cleanse the body. Offers Herbalife and natural cosmetics.

  • To work as a distributor You must purchase the International Distributor Kit.
  • When selling goods at retail purchased at the wholesale price, the distributor earns a 25% return.
  • A supervisor is standing over the distributor. His commission and monthly remuneration for services is 5%. In addition, its retail income is 50%, and wholesale - up to 25%.

Mary Kay

Mary Kay has been in existence for almost 50 years, and all this time it has been very popular among women. The principle of its consultants “Try before you buy” is still relevant today. It is one of the best-selling brands for facial skin care and makeup applications.

Branches of the company exist in 36 countries of the world, on 5 continents. In 1993, the first Mary Kay products went on sale in Russia.

Features of working in the company

  • For work The company invites women at least 18 years old.
  • To become a Consultant for beauty, you need to purchase a Consultant Starter Kit. Consultants receive income from the sale of products during their presentation at master classes, when re-ordering goods and attracting new employees to work in a team.
  • You can become a direct client to purchase products with a significant discount - up to 40%, receive gifts and a monthly magazine, participate in contests and receive free professional training in makeup techniques and business basics.

132 years have passed since the founding of the German company Vorwerk. Its activity began with the production of carpets and weaving equipment. Today the company offers kitchen and floor care equipment sold in 58 countries around the world. Vorwerk products appeared on the Russian market in 2005.

What is special about the company?

  • For beginners Those wishing to participate in the work of the company are offered free training, which includes a theoretical part and basic trainings. Refresher courses are being held.
  • Consultant he plans his own working time, receiving a certain percentage of sales.