The fact that today in the world there is and is actively working MLM business, or network marketing, knows, without exaggeration, almost every inhabitant of our planet. However, not everyone is familiar with the very essence of this concept. And this is despite the fact that now this industry is at a new peak in popularity, which is due to the development of the Internet.
So MLM business - what is it? Let's delve into this issue.
The debate about MLM business - what it is, has not subsided in society to this day. Someone considers network marketing to be almost the only opportunity that allows you to open your own business without any investments, and someone is one hundred percent sure that this is nothing more than a hoax, a scam and a financial pyramid. Should I pay attention to this type of business? Let's try to understand this article.
Definition of a concept
Multi-level marketing, or MLM is a concept whose translation from English means nothing more than “multi-level marketing”. This phrase allows you to understand the essence of this variety of business.
MLM is an organization consisting of several levels or “steps”. The purpose of its creation is to influence the promotion of a certain group of goods from the manufacturer directly to the buyer, bypassing any intermediaries. This becomes possible by contacting members of this organization.
Often you can hear the opinion that the network business forces its member to purchase a mass of products, put them in a big bag, and then walk around and sell all the goods. Of course, such an activity exists and is called direct sales. However, it has nothing to do with the MLM business. Indeed, today various MLM companies are working, offering to purchase products only for personal use.
Idea of creation
What is MLM for? This is a business that makes the process of promoting services or products faster, cheaper and more convenient. The idea of network marketing is to remove from the scheme of product promotion not only intermediaries, but also expensive advertising, the cost of which is also reflected in the price. And this became possible after people began to tell each other about the product that is produced and sold by the company. In this process, MLM companies also use motivation, which is expressed as a percentage of sales of its products. However, it is difficult to earn only on such bonuses. That is why network companies offer building their own business. It becomes possible when creating a wide network of consumers of goods.
Such a case involves the development by man of his own structure. From her turnover, he will receive a certain percentage. Thus, everyone can create a source of passive income for themselves, the value of which sometimes amounts to tens of thousands of dollars in just one month.
Network Marketing Tasks
MLM is a business whose creation is designed to:
- significantly reduce the price of goods offered to the final consumer due to the rejection of expensive advertising;
- it is much faster to deliver the product to the buyer thanks to a network of our own warehouses, which are open in different countries and cities;
- exclude fake goods, which is associated with the work directly with the end user;
- to motivate members of the organization with business opportunities and money.
The relevance of network marketing
Conducting such a business today is considered quite a profitable business. And this is confirmed by the work of such world-famous MLM companies as Amway, Avon and Oriflame.All profits from the sale of goods in these and similar organizations are divided between all its levels. Unlike traditional trade, the products of MLM companies are sold without the participation of a group of sellers who daily stand behind the shelves and receive scanty salaries. A sufficiently large number of people participate in the sales of multi-stage marketing products, who devote the minimum amount of time to this work. After all, such a business is to increase profits by attracting more and more people to sales.
Companies that wish to use the network marketing scheme to sell their goods do not invest significant amounts of investment in the construction, opening and further operation of company stores. In addition, they do not need to conduct large-scale advertising campaigns and to form an army of administrators and managers whose task is to accompany the trading process.
How it works?
What are the main principles guiding the MLM industry in its activities? And it all starts with the fact that the manufacturing company, which has its own factories, produces some goods. Further, she distributes it without stores. Their promotion is facilitated by a clearly structured system of recommendations. The people call it word of mouth. The bulk of people like this principle, and this contributes to the sale of goods to a wide range of consumers.
To date, all orders for the purchase of goods from MLM-companies can be issued via the Internet, which gradually pushes paper catalogs into the background.
The client begins to use the products and can start building their own business. To do this, he will need to find only a few people who will continue to make purchases of the goods of this MLM company and attract new partners to the business. Such actions will create and develop a network.
Having our own warehouses and delivery services allows the company to deliver products to the warehouse, and then distribute it at offices organized personally by partners (distributors) to attract new customers. Sometimes the order is delivered to the client directly to the house, which is also very convenient.
MLM and the financial pyramid
For many people, network marketing is associated with the notorious MMM project in the 90s. However, such an industry has nothing to do with the financial pyramid. Of course, just like in the financial pyramid, network marketing works to attract people. It is for this that distributors can receive rewards from the company. However, participants in the financial pyramid receive money only for the "head".
That is, their earnings depend on the number of people who invested their money in this project. But the remuneration in MLM depends only on the turnover, which will create new customers attracted by the distributor.
Work over the Internet
Every day more and more popular is the business with MLM. The reviews make it clear that using the Internet it is quite possible to build all the work to attract customers. There are the most effective ways to find buyers, which are as follows:
1. Participation in forums of relevant topics, raising the themes of career growth, earnings, building a business without initial investments, etc.
2. SEO promotion. It consists in creating your own website and writing articles with keywords that will affect large-scale earnings, network marketing, etc. This will attract a large number of people who are not averse to supporting this type of activity. For such work, the MLM One Click site can be used. Feedback on this resource suggests that this is the most interesting project of MLM initiatives. The site is a designer of MLM matrices. With their help, without much difficulty and absolutely free, you can create your own resource to attract customers.
3. Social networks.For those who decide to open their own business in MLM, it will be necessary to create a community that raises issues on the relevant topics.
All those who joined this group can be considered as potential buyers.
4. Contextual advertising. They are configured on their own site. However, it is worth considering that when using this method, you will have to incur certain financial costs.
Business examples
Anyone who is interested in the list of MLM companies, the work in which brings the highest income, can see the rating below. All these firms are very popular in Russia. Moreover, their goods are acquired by a wide range of users.
It is known that the first network marketing companies appeared in the 30s of the last century. But they all dealt only with nutritional supplements, offering customers only one product. The most successful of these was Amway. It started in 1959 and was the first to expand the range, offering its users, in addition to food additives, household goods.
Oriflame
The rating of MLM companies has recently invariably begun with this company, whose history began in Stockholm in 1967. The company became successful largely due to the new principle of product sales - network marketing. To date, its offices are open in 65 countries, and the number of consultants has exceeded 2 million. And this is not the limit. Thanks to the new opportunities that the Internet offers, it has become quite easy to register and become a member of the MLM team. Orilider.com - entry into the leadership group. This site will allow you to become a consultant and explain all issues related to career advancement.
The business model of Oriflame is truly unique. By registering on the firm’s website, everyone can join a huge army of distributors and begin to make their dreams come true.
Avon
This company continues our MLM rating. Avon can also serve as a prime example of a successful business. The specifics of the company are direct sales. Avon distributors offer cosmetic products to their customers. But in addition to these funds, which are in great consumer demand, the company produces limited-edition home goods. In their list are soap dishes and cutlery, coasters and trays, vases and candlesticks, dishes made of glass and porcelain, as well as metal. The company offers perfumes, various accessories, as well as care products. Avon's secret to success lies in quality products made using environmentally friendly components. In addition, buyers are pleased with the ease of sales, which are carried out with pleasure by distributors.
Mary kay
Successful status this company has been for more than forty years. More than a million consultants sell its products worldwide, offering quality products to customers in thirty-four countries.
The assortment of products of the company is quite wide. It includes cosmetics and perfumes, as well as various care products, which are composed exclusively of natural ingredients. Product quality has been verified through years of research, development and testing.
Faberlic
This is a successful Russian MLM company. In its arsenal - more than thirty patents for innovative products, as well as representative offices opened in twenty countries of the world. Faberlic's unique products are oxygen cosmetics. Efficiency and high quality of these funds made the company the first in the MLM rating.
"Tiens"
This multinational corporation is relatively young. It was created in 1995. But, despite such a short period of time, the Tiens were able to reach an international level. And the network marketing system helped her in this. Today, this giant corporation operates in 190 countries. Its distributors sell cosmetics and dietary supplements. The company is engaged in investment activities, conducts tourism business, etc.
Mirror
This Russian company is also one of the most successful in the MLM business. It was created in 1996, and soon gained popularity thanks to products that include ultrafine emulsions and liposome gels in the formulation. Distributors of the company offer customers cosmetics for the care of face and body skin, oral cavity and hair. There are in the assortment of the MLM manufacturer children's and sunscreen series, decorative cosmetics, dietary supplements, perfumes and heal balms.