Network marketing companies in Russia. Rating of mlm companies in Russia Network business rating of companies

20.08.2023

Network marketing as a type of business is gaining new heights. However, not everyone knows him well - some trust him and are happy to cooperate with such companies, while others try to stay away from MLM trading and sincerely consider it a swindle and a "pyramid".

Network marketing and financial "pyramids" - similarities and differences

The second category of the population is only partly right - the principles of network marketing actually resemble financial "pyramids". It lies in the fact that in order to make a profit, it is necessary to attract other people. However, this is where the similarities end.

Simply put, in the second case, you can bring as many new participants as you like, but if they don’t buy anything, then the income of the “agitator” will be zero.

With the first option, the opposite is true - the client receives a percentage of the contributions of newcomers. In this case, the amount of the initial payment is usually very significant and can range from $100 to infinity. The participant most often does not receive a real product or acquires something that does not have a high value in the real world.

How to choose a company for cooperation

For those who decide to start a career in network marketing, experts advise choosing the right company for cooperation.

Here you need to pay attention to the following factors:

Training and informing consultants

For a beginner, it is very important to have the opportunity to attend various trainings, consultations with more experienced sellers. Many companies offer step-by-step training systems that allow anyone who wants to quickly move up the corporate ladder. In addition, MLM organizations often offer educational and promotional materials.

Company reliability

There are two ways here - to choose a start-up company or one that has already established itself in the market. In the first case, you can be at the very origins of the business and have more opportunities to attract new customers and get "quick" money. But here the “pitfall” is the new name of the company: firstly, no one knows the quality of its products, and secondly, it can quickly cease to exist.

In the second case - to go to work in a reputable company - there are also pluses and minuses. On the positive side: the products of this company are already known to the consumer, so they sell better. In addition, it is unlikely that it will fall apart in the next few years. But there are also disadvantages - such companies already have enough distributors, and competition among them is high.

Manufactured products

It must meet the following requirements:

high quality and environmental friendliness is a must! After all, network marketing is built on the principle of "word of mouth", and in the event that the buyer was dissatisfied with the quality of the purchased product, he will recommend to his friends not to use it;
a wide range - in this case, each buyer will be able to pick up something special for himself and his family. How many advisors can be successful trading only two or three positions?
affordable prices - they should be such that 95% of the country's population can afford to purchase this product;
not a very long validity period - this is necessary so that the client purchases these products as often as possible. If the product has a validity period of several decades (for example, dishes), then the distributor will have to constantly be in search of consumers. The ideal goods for trade are cosmetics, household chemicals, perfumes, hygiene products,.

Company rating

Continuing the topic, one can casually notice that a company for cooperation is chosen based on its financial performance. And this is logical - the more sales the company has, the better the demand for its products from consumers, the more stable it develops and grows faster.

The rating for 2018 is as follows (in billions of dollars):

Amway - $9.50
Avon - $6.16
Herbalife - $4.47
Vorverk - $4.00
Infinitus - $2.88
Mary Kay - $3.70
Perfect - $3.58
Natura - $2.41
Tupperware - $2.28
Nu Skin - $2.25
Tiens - $1.55
Primerica - $1.41
Ambit Energy - $1.40
Oriflame - $1.35
Belcorp - $1.20
Telecom Plus - $1.17
New Era - $1.16
Jeunesse - $1.09
New Avon - $1.01
Young Living - $1.00

There is a Direct Selling Association (DSA) in Russia whose main goal is to develop the network marketing industry. She is also involved in protecting consumer rights and monitoring compliance with ethical standards in doing business.

This association includes only 21 MLM companies out of many firms operating in the country:

Senior members of the APP:

Amway
Herbalife
Mary Kay
Oriflame
Tupperware
Tiens

Active members of the APP:

Jafra
Coral Club
Mirra
Morinda
Nu Skin
Tentorium
Faberlic
Florange
Associate Members of the AMS:
Accord Post
AlliancePrint
filuet

Based on these data, you can choose an excellent company for cooperation and start, albeit small at first, but your own and reliable business.

Hello, dear readers of the financial online magazine "RichPro.ru"! The topic of today's material is network marketing (MLM): what is it, which MLM companies in Russia have a high rating, how does the network business work, and so on.

After all, for many centuries the model of distribution of goods and services " manufacturer – large wholesale. – small wholesale. – retail – buyer' was the only possible one.

ButV30s years XX century in the United States, a product distribution system was born and subsequently developed " manufacturer – distributor — buyer».

At the same time, the activities of MLM companies have been covered with various rumors, comparisons with financial pyramids and ambiguous public opinion for many years. Based on this, for an objective look at this type of business, you should consider in more detail all aspects and nuances of network mlm marketing.

So, from this article you will learn:

What is MLM - the history of the network business industry;
The main advantages and disadvantages of network marketing;
What network companies of MLM business are the most popular (ranking by sales volume in the world).

After reading this article, you will determine for yourself whether it is worth doing network multilevel marketing, find out which companies are better to choose and why, read the reviews of "experienced" mlm marketers.

What is network marketing and how it works, what is the basis of the scheme of cooperation with MLM business, which MLM companies have high ratings and much more, read below in the article

Network marketing is a system for the sale of goods and services from the manufacturer to the buyer, which is carried out through recommendations from person to person.

The core of the MLM business is in non-store retail, in which the distributor independently establishes contact, advertises and sells the product to a potential buyer.

In addition to earning from retail sales, a sales agent offers consumers, for a percentage of sales established by the company, find new buyers , which, under similar conditions, "attract" regular customers. The result is a multilayer network.

Network Marketing Tasks

Product pricing optimization. Before 70% the retail price of everyday goods is the cost of the distribution network and advertising. Changing the distribution structure allows you to reduce costs.
Providing the customer with quality, genuine products. With traditional product promotion, there are obvious prerequisites for the emergence of fakes on the market, and they are absent in the direct sales method: the product is not as widely known as its analogues from the traditional market, the manufacturer, distributor and buyer are not interested in the appearance of counterfeit products.
Improvement of the product delivery system. The manufacturer's control over the logistics and storage of goods allows us to provide the consumer with a product of the proper quality and in the optimal time (read the article at the link).
Improving the distribution of profits of the manufacturing company. Reducing costs allows you to direct financial resources to incentive programs for sales agents, various bonuses and incentives, as well as improve product quality.

Let's take a look at how network marketing works.

2. How network business (marketing) works - the principle of operation of MLM companies 🗺

Multi-level marketing is an interaction between a manufacturer, an entrepreneur and a buyer.

How multilevel network marketing works - 3 sides of profitable cooperation with MLM

2.1. Network marketing by MLM company

An MLM company manufactures products in its own factories. She also develops a marketing and sales plan, based on which the proceeds from the sale of products are distributed.

As a rule, a business plan motivates distributors in several ways:

a) consume the products themselves;
b) sell goods to customers;
c) create a network of entrepreneurs.

Manufacturers organize the delivery of products to their own warehouses in different countries and cities, and also ensure that distributors receive goods at home.

For proper efficiency, entrepreneurs receive all the necessary materials for products, master classes, seminars are held aimed at developing various skills.

2.2. Consumer Network Marketing

A distinctive feature of the direct sales method is the creation of convenient conditions for the buyer:

Delivery. Entrepreneurs, as a rule, bring goods to their homes.
Service. Before buying, the buyer receives all the necessary information about the product. Also during the operation it is possible to consult with the distributor.
Quality Assurance. Most MLM companies guarantee the quality of the products, with the possibility of a full refund if the client is not satisfied.

2.3. Network Marketing by the Entrepreneur

Multilevel Marketing - a very attractive activity for people who do not have a lot of initial capital and business experience.

The entrepreneur has the opportunity to independently plan his employment based on his capabilities. Most employment in this type of business is observed among students, housewives and pensioners.

Some terms and definitions used in the network marketing business:

Distributor - a sales agent who has an agreement with a direct selling company and receives a commission for the sale of products, as well as a percentage of commissions for the turnover of the network created by this entrepreneur.

Sponsor (partner) of the 1st level - a sales agent who introduced the consumer to the possibilities of this business and helped to conclude an agreement with a network marketing company.

Sponsorship (affiliate) line - a list of entrepreneurs directly interested in the success of the distributor, which includes a 1st level partner, his sponsor, etc.

Side businessmen – a set of distributors that are not part of either the sales agent's subnet or the sponsor's line.

Bottom line partners – a list of agents included in the distributor's network.

Organization Width - a set of partners of the 1st bottom line.

Depth of organization — all agents of the 2nd and subsequent bottom lines in the distributor's subnet.

Active income - monetary compensation for the work performed by a person. Income depends only on the quantity and quality of labor invested.

Passive income- profit received by a businessman constantly, for one-time work performed. To receive this income, a prerequisite is the availability of assets, which can be real estate, bank deposits, shares, etc.

8. Advantages and disadvantages of network marketing - an overview of the main pros and cons of MLM business 📃

MLM - business has a number of advantages and disadvantages. The assessment of this type of activity in the media, among reputable businessmen, and politicians varies greatly.

Advantages of MLM - business and its advantages

Let's consider the main ones:

Low entry barrier to the market. When opening any business, an entrepreneur evaluates the resources that he needs to start in the market. In a direct selling business, little money is needed to start a business. Also, there are no costs for renting premises, warehouses and other fixed costs.
Possibility of doing business on the Internet. Since the end of the 20th century, more and more consumers, manufacturers, and businessmen have been making purchase and sale transactions on the World Wide Web. Doing business online is an indisputable advantage of business.
Product quality. Thanks to the peculiarities of MLM marketing plans, companies are able to allocate large sums for the manufacture of quality products compared to competitors who use traditional marketing to promote their goods.
Tutorials. To develop the skills of sales agents, direct sales companies are implementing training programs that include books, CDs, seminars, and a variety of trainings and presentations. This information allows you to develop not only in sales, but also contributes to personal growth, improvement of family relationships, etc.
Part-time employment. Opportunity to work in your free time and at the same time have an income from your main activity.
affiliate program. Sponsorship (partnership) line is interested in the success of the distributor. More experienced partners support, help and advise newcomers in every possible way. Relationships are built on equal terms, regardless of income.

As you can see, there are significant advantages for which you should start this business. We also suggest reading the article - "", perhaps you will find useful information there for yourself.

Disadvantages and cons of network marketing

Consider now the main disadvantages:

Reputation. Due to the lack of restrictions and the selection of agents, sometimes new entrepreneurs conduct business incompetently: they impose products and the business itself, give false information and thereby compromise this type of activity in every possible way.
High likelihood of worsening relationships with friends and loved ones. Most of the population prefers employment. In the case of doing business without an office, warehouse and employees, friends and relatives have a negative attitude towards this business.
Slow or no business growth. As a rule, the entrepreneur receives the first significant results in the period from six months to two years, subject to systematic work and training. A very large number of distributors have not been successful in this business.
The vast majority of proposals for cooperation are rejected. Active participation in business building 80 — 95% of the work does not bring results.
Only a few entrepreneurs achieve significant success. On the way to success, a sales agent encounters a lot of difficulties, overcoming which requires perseverance, education and work on oneself. Not everyone is ready to overcome all possible obstacles.

Above, we presented the main disadvantages and disadvantages of conducting cooperation with MLM companies.

9. Rating of network companies in Russia - a list of the most popular MLM companies 📑

The first mentions of network marketing in Russia are dated 90s of the XX century and associated with the company Herbalife". The company's products quickly spread throughout the country. Tempted by new business opportunities, thousands of people have decided to cooperate with this organization. Expecting quick success many distributors endured collapse , attributing to the fact that the activity of this company is illegal .

At the same time, many financial pyramids appeared in our country that have an external resemblance to MLM companies. All this affected the reputation of this type of activity.

Despite these factors, the direct selling business in Russia developed significantly in the following decades.

By the beginning of the new millennium, all global leaders in network marketing are present on the Russian market.

In this table, you can consider the most popular network companies in Russia.

No. p / p	Company name	Brand Country	Products	Share of MLM market in Russia (%)	Sales volume in the world, billion $
1.	*Amway*	USA	A wide range of products: household goods, cosmetics, vitamins, dishes, water filters.	8,1	9,5
2.	*Avon*	USA	Inexpensive cosmetics for the middle class	28,8	6,16
3.	*Oriflame*	Sweden	A wide range of products: from cosmetics to diet food	27,4	1,35
4.	*Mary Kay*	USA	Cosmetics	4,9	3,7
5.	*Faberlic*	Russia	Oxygen cosmetics from natural ingredients	4,8	no data
6.	*Herbalife*	USA	A variety of products for a balanced diet, weight management and beauty care	3,0	4,47

The table shows that the world leader in this industry, the company " Amway» in Russia ranks only third in terms of sales.

Corporations have the largest market share. Avon" And " Oriflame».

Is it possible to make money in MLM, what is needed to make money in network marketing

10. Is it easy to make money in network marketing, and what is needed for this 💰

Due to its merits, network marketing is a fairly popular activity.

According to the Direct Selling Association of Russia, following the results of the last five years 6% population was employed in business based on multi-level marketing.

Distributors have significantly different earnings, which do not depend on the level of education, profession, number of children, marital status and other factors.

A small percentage of sales agents quickly and easily achieve results. This is due to the fact that knowledge and experience are necessary for success.

To achieve significant results in business, you should follow the following tips:

A dream is the main factor that allows an entrepreneur to overcome difficulties and achieve success. To maintain motivation, you should “break the path to your dream” into intermediate goals.

The sales agent must realize that the result of his activity depends only on his efforts and dedication to the cause.

Tip 3. Learn and develop

Most network marketing companies have training programs. They include business literature, CDs of business leaders, and training seminars are periodically organized.

For effective activity, you should write a list of acquaintances in a notebook and periodically replenish it.

Tip 5 Present business and product

Based on the list, you should "get in touch" with potential partners or customers. The number of presentations affects the final result.

Tip 6 Consult with the sponsor line

Better to learn from other people's mistakes. Top line partners have more experience and are always ready to help the distributor, as they have a personal interest in the success of the entrepreneur.

Tip 7. Build a business based on the developed strategy

A stable, long-term result can only be achieved if there is a balanced development of the "width" and "depth" of the structure.

Tip 8 Repeat actions and methods of achieving success used by higher partners.

It is also worth noting that the downline partners are also watching the distributor, and will repeat his actions.

11. FAQ - answers to frequently asked questions

Before engaging in multi-level marketing, potential distributors have a number of doubts and questions.

Question number 1. Should a newbie start?

Worth it, but don't expect quick success. No risk of "being in the red", small initial investment, high-quality educational programs, partner assistance - factors that can affect success.

Question number 2. How to make your first money in network marketing?

When starting cooperation with a "network" company, sales agents strive as quickly as possible. Activities should start with simple retail sales.

Buying goods at a wholesale price, and selling at a retail price - distributor makes money . First of all, products should be offered friends, relatives and acquaintances, as they will be more loyal to an inexperienced seller, and in the future they will be able to become regular customers or business partners.

Question number 3. Network Marketing: Is It Legal?

The direct selling business is a legitimate activity, which confirms the existence and development of these companies for decades.

Many illegal structures disguise their activities under the guise of network marketing companies.

Important! The potential client is invited to deposit an initial fee, pay for the mandatory training and purchase the minimum lot of goods. This is accompanied by the absence of checks and invoices confirming the purchase of products or the provision of services.

Also, the consumer should alert the poor quality of the goods or its absence.

Network companies offer good quality products and do not require significant financial investments to open their business.

Question number 4. What are the reviews of network marketing - is it possible to really make money on it?

There are many different opinions about network marketing on the Internet.

Here are some of them:

Review 1."At first 2000s a colleague at work offered to try the company's products " Oriflame". I really liked the product, and I became a regular customer. A couple of months later, she invited me to become her business partners and told me how to make money.

At the first stage, I managed to have a fairly large income, but then everything changed. I am raising two children alone, and as my network grew (at that time I had 34 people in the team), it was increasingly difficult for me to combine household chores and business.

As a result, incomes began to decrease, and at some point 12 people “left” my network. Later, I decided to switch to the classic business. In order to have great success in this direction, you need a lot of ambition, determination and activity. One girl from my structure has achieved great success in " Oriflame". I do not regret anything, the knowledge and experience gained at that time allow me to successfully do my job now.

Olga, Samara»

Review 2.“In our sophomore year at university, our stream was 'covered by the virus' of network marketing. Earning opportunities from Faberlic fellow students discussed everywhere. I have never been a fan of sales, but still decided to try.

Over time, I realized that it is hard to make money in this business, the bulk of the income from your turnover is received by superior partners. To be successful, you need to be able to impose products.

I don't recommend network marketing to anyone.

Alina, Rostov»

Review 3." IN 2009 I had to close my own business and ended up in debt to the banks $40,000, of which 2 000 I had to pay every month. I urgently needed to get out of this situation. I was in search of a solution, I considered various options for earning money.

Suddenly, I was approached by an old friend, whom I had not seen for many years, with an offer to go into business in cooperation with the company " Amway". At the presentation, he told me about the possibility of a decent income in a year or two. But I was as quickly as possible, which was suggested to focus on personal sales of expensive products, which have a significant margin. So I started in the business selling water filters and dish sets.

I have enough wealthy acquaintances and, in order to get out of my situation, I had to actively promote products. In my first year in network marketing, I spent weekdays 2-3 meetings with clients, and on weekends - 6-7. The result was not long in coming - I paid off my debts and, without actively "attracting" partners, reached 9 – 12 % achievement levels.

Then I studied the company's marketing plan in more detail and began to develop my own network of distributors more actively. At the moment I'm at the level Platinum Independent Business Owner.

I agree that making money in this business is not easy, but if you have the motivation, then anything is possible.

Andrew, Peter»

Question number 5. How to distinguish network marketing (MLM business) from a financial pyramid?

Most conduct their illegal activities under the guise of direct selling companies.

The table shows the comparative characteristics of these organizations.

Comparison criteria	Network marketing	Financial Pyramide
1. Initial investment	Typically a small initial investment. The distributor for this money receives "tools" for activities: catalogs, information about the company, product and a detailed presentation of the business plan. For many companies, with a certain amount of initial purchases, these materials are provided for free .	Significant upfront investment from 100 to 6,000 dollars. From this money, "bonuses" are paid to the higher "agents" of the pyramid.
2.Product	All activities are based on the sale of products. The product is of high quality and is in great demand in the market.	The product is missing or of little value to consumers.
3.Priorities in the activities of the organization	Receiving profit from the sale of products and its fair distribution between distributors and the manufacturing company.	Attracting new participants and distributing the profits from their contributions between the higher "distributors" and the organizers of the pyramid. Emphasis in activities on quick earnings.
4. Paperwork	Making money in a legal way: accompanying the purchase with checks, invoices. Drawing up an agreement between the company and the sales agent.	Lack of documents or their improper execution.
5.Distributor motivation	The business plan is based on the promotion of the manufacturer's products on the market and the corresponding remuneration of sales agents.	The plan involves only attracting new "agents".

Question number 6. How to choose an MLM company to start?

For newcomers who consider the direct selling business as a suitable activity, there is a question of choosing an organization for cooperation.

For an optimal solution, a number of aspects should be taken into account:

Reputation and age of the company. It is better to opt for an organization with a good reputation and significant experience in this field.
Products. The basis of any trade is a product. Its quality will directly affect the result. It is also worth paying attention to the features of the product. It is important that it ends after some time, and customers contact the sales agent again. The diversity of the assortment is also an essential factor when choosing a company.
Tutorial. The education system has a significant impact on business success.
The presence of the company's business on the Internet. Being offline greatly reduces the opportunity for business growth.
Business plan. It is important to evaluate the company's marketing and sales plan in terms of the fair distribution of the profits of the organization. You should also check for restrictions. The best kind of business plan is " multistage plan with branch».

Question number 7. I want to try my hand at network marketing at Oriflame, Faberlic, Amway - what do I need for this?

In order to become a distributor of direct selling companies, it is necessary to draw up a cooperation agreement with this organization, the age of the applicant must be at least 18 years old.

To register the contract, it is necessary that the newcomer has a sponsor who will help draw up the documents.

12. Conclusion + related video 🎥

In recent decades, various methods of promoting products have been rapidly developing in Russia, one of which is network marketing. Despite the controversial reputation, this method of trading became convenient and popular among buyers.

Having a thorough knowledge of what is direct selling business , the consumer can make the best decision about its use - to access quality goods that are not available in retail stores, earn additional income or develop their own network business with the prospect of significant income.

In conclusion, we also offer you to watch an interesting video about business on the Internet:

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.

Suggested Product. It should be safe for human health and affordable. Its application must produce results.
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.
Marketing plan. It is desirable to compare it with the plans of other companies, paying special attention to compensation payments through the network.
Distributor training. It should be free, accessible and professional.
Company fame. To build an international business, a company must have a structure in at least 3 countries.
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.
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.

The number of distribution companies specializing in MLM is increasing every year. This is due to the fact that this business is profitable and quickly generates income. They are easy to do without even leaving the house. If you study in detail the basics and concept of MLM marketing, you can achieve excellent results in 2-3 months.

What is network marketing

MLM business is a multifaceted concept that opens up many perspectives. It implies the concept of the sale of services and goods, based on the formation of a network of independent sales agents who are not only involved in the sale of products, but also have the right to attract new partners who will be endowed with similar rights. The income of each networker is formed from commissions from the sale of products and additional remuneration (bonuses), which directly depends on the volume of personal sales of the involved sales managers.

History of network marketing

Carl Rehnborg is considered the founder of the MLM business. He developed ideas that later turned into an entire industry with huge multi-million dollar turnovers. In 1927 in the USA, Rehnborg began to work hard on the creation of nutritional supplements. For testing purposes, he distributed the developed drugs for free to his friends, who subsequently refused to take them.

After Carl realized that the free is not appreciated, he began to sell supplements: the results were not long in coming. Information about drugs quickly spread, and the number of people interested in them increased. Karl Rehnborg could not satisfy the needs of all customers on his own, so he had to come up with a new scheme. He invited his acquaintances to provide information about bioadditives, and, subject to successful sales, promised to pay commissions. From these events began the history of network marketing.

California Vitamins was founded in 1934 by Carl Rehnborg. It operated a sales system, according to which the consumer of the product became its distributor. In 1939, the marketing company was renamed Nature's Sunshine Products, the principle of drug distribution remained the same. Network agents independently attracted new clients to cooperation, advised them, made sales plans, came up with individual sales schemes, and offered to create their own network.

The MLM company fully provided the networkers with goods, paid commissions in a timely manner. So in MLM a new definition appeared - single-level marketing. The story of the business did not end there: a new round was set by the American Way Corporation (abbreviation Amway), created in 1959 by former Nature's employees Jay Van Andel and Rich de Vos.

What is the merit of these people in the development of the MLM business? They began to sell not one product, but several. The list of goods offered to consumers has been replenished with food additives, household chemicals and household goods. Soon network marketing companies appeared on the world market. They began to function successfully in Russia, China, England. Their importance has become enormous both for people and for the economy of many countries.

Types of network marketing

MLM business is developing at a fast pace, its varieties are increasing every year. The main types of network marketing are as follows:

Puff (the most popular, adapted to the Russian market, its vivid example is the companies selling cosmetics - Avon Products, Faberlic, Mary Kay, Oriflame. The essence of this type of marketing is that the concept of the company is based on the work of certain layers of employees of several levels.
Pyramid. This type of marketing involves the following scheme of work: there are founders who find a few people who sell services and goods, they subsequently find a few more people and control their activities, and so on ad infinitum.

How Network Marketing Works

The principle of operation of Russian MLM companies is the same:

First, a person is interviewed, where he is introduced to further prospects and opportunities.
Then the person is told that he should, using the network, attract new people, the greater their number, the greater his monthly income.
How does network marketing work? New employees, becoming distributors of the company, independently promote it, for which they receive commissions, contributing to their own development and business development.

The essence of network marketing

What is MLM (multilevel marketing), what is its essence? This is one of the most popular and effective ways to legally promote services and products. MLM companies offer unique products that are in demand both in individual cities, regions, countries, and around the world. MLM business is not only direct sales. You don't have to sell anything to be successful in this field.

The main components of multilevel marketing are well-organized intellectual distribution, the effective use of all its capabilities and advantages. In other words, the main essence of network marketing is that consumers, being at the same time partners of the company, develop its network and make a profit from the turnover.

Network Marketing Principles

MLM business is based on the following rules:

equality for all;
helping others;
minimum entry costs;
having a residual income;
pyramid structure (this principle of network marketing ensures the constant development of the business and its stability).

Network Marketing Structure

Running through the MLM business and not noticing the main thing, many do not achieve the desired results. Why? Because they do not know how to properly build the structure of network marketing. What is a structure? These are people who take part in the organization of trade, and the final income directly depends on their number. It can include acquaintances, friends, complete strangers. The main task is to skillfully unite them and constantly motivate them for successful promotion.

Network companies

There are many companies that specialize in MLM business. They sell cosmetics, chemicals, household appliances, household goods, and other products. A detailed list of network companies successfully operating in Russia is given on the Mlmbaza website, the most popular are:

Life;
Oriflame,
"Siberian Health";
Faberlic;
Avon;
Primerica;
Shaklee;
Talk Fusion;
Neways;
Vitamax;
Zepter International;
Kirby;
Atistek;
Lurk;
True.

Work in network marketing

Anyone can try their hand at multi-level marketing business. Companies provide training in network marketing, but not everyone can master this profession. An MLM distributor must be able to organize the sale of products, draw up schemes for the effective distribution of services and goods. The profession obliges to attract new partners, expand the client base (network), apply intellectual resources, use the network, establish a system that will generate income directly for the company and the network manager.

Network business on the Internet

The global web opens up incredible opportunities for networkers. Using her gifts, you can make a fortune without leaving your home. On the Internet, products are promoted through their own websites, information groups, blogs, and communities. The main task of the distributor is to find the target audience, create an effective sales information network, constantly improve and develop it. Network business on the Internet has the following advantages:

the ability to conduct business from anywhere in the world;
the possibility of attracting potential partners from any regions, cities and countries;
a lot of information programs that provide prompt assistance in solving organizational issues, conducting education and training;
the possibility of selling through online stores with an integrated order basket;
possibility of learning online.

How to make money in network marketing

To be successful in this business, you need to follow a few simple rules:

be a sociable person who is not afraid to approach strangers with a proposal;
be able to interest, present products brightly and unusually;
actively involve their relatives, acquaintances, colleagues;
constantly improve oneself, raise the intellectual level;
skillfully build a pyramid by attracting new people, in order not only to earn commissions from sales in network marketing, but also to provide residual income.

Cons of network marketing

Before you start a distributor career, you need to familiarize yourself with the main disadvantages of the MLM business. This is the only way to understand how correctly the direction of activity is chosen. List of cons of network marketing:

unstable income;
great moral burden, constant pressure from customers;
the need for material investments;
a high level of responsibility for the people involved.

Network Marketing Benefits

MLM marketing has both its pros and cons. He teaches to receive unlimited income, which depends on the aspirations and character of the person. Another benefit of network marketing is financial independence. Network agents have a free work schedule, independently plan their day, make decisions, gain new skills, the opportunity to develop socially, improve their status. These advantages cover all the disadvantages of this type of activity.

Video: how network business works

Almost 90% of successful MLM companies present on the Russian market work in the field of cosmetics and dietary supplements. Found their customers and categories such as goods for motorists, dishes and textiles. Many of the network brands are not only known to the consumer, but are also in high demand, which means that it is much easier to get additional income by becoming a representative of such a network. In order to reduce risks at the same time and conclude an agreement with a reliable organization, you can consider for yourself a list of network marketing companies in Russia that work completely legally and are included in the ratings of the best in terms of product quality and cooperation conditions.

Foreign MLM companies in Russia

It is worth recognizing that the best network marketing companies in Russia came to the domestic market from the US and Europe. Many of them have been operating for decades, and even today you can occupy a worthy niche in the existing chain of such a network.

The first network company that appeared on the domestic market in 1995. In the CIS countries, its name has become a household name for all nutritional supplements for weight loss and work in the network business in general. Herbalife was founded in 1980 and today is one of the three largest chains in the world. On average, annual sales of products is about 4.5 billion dollars. Income from participation in the network is generated by discounts on the purchase of products, which at the initial stage is 25%.

Official site in Russia -.

Avon

Avon

The oldest network marketing company in the world, founded in 1886 in California. It has been operating in Russia since 1991, offering cosmetics, perfumes, accessories and souvenirs. It is one of the three largest network companies in the world. Avon products are popular in 75 countries. Network members are offered a linear marketing scheme, which includes income from individual mark-ups on products and remuneration from the group's turnover.

Official site in Russia - avon.ru.

Amway

Amway

The largest and most successful MLM company. She began her work in 1959 in the USA. A distinctive feature of Amway is a wide range of products, which includes various consumer goods from cosmetics and household chemicals to bags, dishes and stationery. Amway's annual turnover is about $12 billion. Members of the network are positioned as Amway Independent Entrepreneurs who receive the right to purchase products at a discount. In addition to earning from the markup on goods, a distributor (registered as an entrepreneur with the tax authorities) can receive bonus payments for personal turnover and the turnover of the group attracted by him.

The official website in Russia is amway.ru.

The company was founded in 1963 in Texas. A feature of this network is not only the launch of high-quality and affordable cosmetics on the market, but also regular lessons for clients on skin care and makeup techniques. Because of this, Mary Kay distributors are called consultants. The annual turnover of the network is about 3 billion dollars, and the total number of consultants is more than 2.5 million people. Currently, about 500,000 network members are registered in Russia, with almost 80% being updated during the year. The partnership is based on a linear marketing system. Income is generated from an individual mark-up when selling products, as well as commissions for reaching a certain level of turnover.

Official website for citizens of the Russian Federation - marykay.ru.

The fairly well-known company Oriflame, founded in 1967, was one of the first to enter the domestic market, which today it positions as the main one. Since 2006, in addition to service centers, the production of some types of brand products has been established in Russia. There are currently more than 3.5 million registered distributors in this marketing network operating under a multi-level marketing scheme. The main products of the company are cosmetics, perfumes and Wellness line of nutritional supplements. In recent years, the company has been actively developing in the Internet space.

Official web representation in Russia -.

Many network marketing companies are trying to enter the market with a non-standard product for this business, which is in constant demand from the consumer. Perhaps best of all, the Austrian company Zepter, which began operations in 1986, succeeded in this. The main direction of goods is high-quality kitchen utensils, household appliances, medical equipment and cosmetics. Products are manufactured using our own innovative developments at six large factories located in different countries of the world. At the time of 2018, more than 120 representative offices of the network were registered in Russia, and more than 6 million people became the company's clients. Zepter offers its distributors a linear marketing system.

Russian web representation -.

A young French MLM company with a linear marketing system that entered the Russian market in 2013. The main product line is natural cosmetics at an affordable price, while distributors purchase products at a 26% discount. The income of a company representative, in addition to the markup, is also formed from the turnover of the attracted group, which ranges from 3% to 21%. Also, distributors can arrange the opening of a bureau (subdivision), receiving additional bonuses from its turnover. At the current stage, Biosea is in a phase of active growth, which makes it attractive for building an independent career.

Official site in Russia - biosea.fr/ru.

In fact, Farmasi was founded in 1950, but it entered the Russian market only in 2011. The main direction is the sale of decorative cosmetics, luxury perfumes and various care products. Like many network marketing cosmetics companies, the Turkish brand Farmasi offers to earn through a markup (discount for a partner), which directly depends on the volume of sales. Bonuses are also paid from the turnover of the attracted group, while the percentage of deductions depends on the level of the latter. Currently, the development of this network is marked by intensive growth, which is due to the high quality of products and incomparably affordable prices.

Official website of the company -.

An American company founded in 1978. A feature of this network is products made exclusively on the basis of Aloe Vera. At the same time, more than 150 names of complexes, cosmetics and bioadditives are presented in the catalog at present. Forever Living Products' current network of distributors, acting as independent entrepreneurs, exceeds 10 million people, but this company is still very little represented in the domestic market.

Company website for the Russian market - foreverliving.com.

Another American company working in the direction of the production of cosmetics and biological supplements. The main emphasis in the development of products Jeunesse Global gives the fight against aging and complex rejuvenation of the body. This is a relatively young network, registered in 2009. It appeared on the domestic market only in 2014, offering distributors six options for generating income at once, working exclusively online. At the initial stage, the partner receives a markup on products due to a 35% discount, a reward for purchasing a starter package, as well as commissions from sales of the involved team.

Russian version of the official website - jeunesseglobal-russia.ru.

Kyani

Kyani

The company has been operating since 2005, but it entered the Russian market only in 2013. The range is represented by natural juices and vitamin complexes, including noni juice. Most of the goods are made from products grown in Alaska. The company offers 12 types of income generation to network partners, including commissions for turnover without limiting the group level. At the same time, the achieved distributor rank does not decrease with a decrease in turnover. Financial data show that Kyani's annual revenue from sales of goods is consistently in the order of $1 billion, which indicates the popularity of products with the consumer.

Russian version of the company's official website - kyani.com.

One of the first Russian network companies based on a franchise purchased in the USA in 1998. The product range includes more than 150 items, most of which are bioadditives and cosmetics made on the basis of corals. Initially, the company's marketing plan had a linear scheme, which over time has been supplemented by many types of bonuses and rewards. When registering as a distributor, a 20% discount on products is automatically provided.

Russian network marketing companies

Undoubtedly, the USA is the leader in terms of popularity of the MLM business model, but our country has made significant progress in this direction over the past decades, introducing many high-quality products and promising cases for distributors to the world market. At the same time, the TOP network marketing companies in Russia are somewhat more diverse, and include networks that work with a wide range of consumer goods, and not just dietary supplements and cosmetics.

The network began operating in 2002, setting itself the goal of becoming a leader in Russian perfumery. Ciel Parfum's strictly linear marketing plan invites distributors to profit from markups on products. At the same time, in order to receive a 40% distributor discount, you must purchase one of the starter packages, costing from 25 to 75 dollars. For attracting a group and increasing turnover, the discount increases. The company's products themselves are of good quality and meet international standards, which ensures consumer demand.

This Russian brand using linear marketing undoubtedly tops the list of network marketing companies in Russia. The network began operation in 1997 and since 2003 entered the international market, delivering goods to 42 countries of the world. In recent years, the company has not only formed a network of 2 million distributors, but also absorbed several competing MLM companies. The main products are cosmetics, high-quality household chemicals, clothing and accessories. According to RBC, it is one of the fastest growing companies in Russia.

Network website -.

The main products of the company are medical equipment and household appliances for therapy and recovery. The network began its activity in 2005, and since 2009 it has received certification and permits from the Ministry of Health of the Russian Federation. The marketing strategy of the company provides for a linear scheme of cooperation with a distributor discount of up to 60% of the cost of goods. Bonus remuneration is accrued only for partners of the first level, but there are no restrictions on turnover.

Recently, a new company website has been launched - biomedis.life.

A Russian network that also works with medical equipment and, above all, devices for physiotherapy at home. It was founded in 1998 and today has more than 120 large warehouses located on the territory of the CIS countries. The assortment includes 15 types of devices, in addition to which dietary supplements and medical cosmetics have been included in recent years. The marketing scheme of cooperation includes several levels, which include discounts on products, commissions from personal sales and the turnover of the attracted group, as well as rewards for reaching a certain rank. For new partners, the company conducts very effective training sessions. Today, this network is attracting more and more attention from both distributors and ordinary consumers.

We can say that this is the first domestic Internet project that successfully combined the MLM concept and the automotive industry. The network began operation in 2014 in Barnaul and today has more than 120 offices in various regions of Russia. The main essence of the project is to provide partner discounts for a wide range of services and goods. The marketing plan of the network is based on a matrix, which you can get into by becoming a shareholder of the project (by paying an entrance fee). To stay in the matrix, you need to invite 2 partners, but at least 7 are required to receive bonuses.

The official site of the project - auto-club.biz.

Domestic brand offering a wide range of health and beauty products (cosmetics, dietary supplements, perfumes, various personal care products). The network was founded in 1996 and today it is not only one of the leaders in the Russian market, but also operates in 16 largest European countries. The number of distributors of the network exceeds 150,000 people. The success of the company is ensured not only by high-quality products, but also by a very good marketing plan that does not require the purchase of a starter pack and any investment. Also, depending on the turnover, free training programs, travel at the expense of the company, a personal car, and even participation in a housing program are offered.

Official website of the company - siberianhealth.com.

It has been operating since 2006, but only in the last period there has been an active growth of the network. The MLM marketing scheme began to be applied in 2013. The main products are health products based on seaweed. When comparing network marketing companies in this product category, Werther Organic has two advantages - more affordable cost and the use of domestic products in production. The marketing scheme for partners includes a distributor discount, seven levels of leadership rewards, team turnover bonuses, partner programs for education, housing reform, and inheritance of achieved results.

Internet representation of the network - vertera.org.

Perfume manufacturer from Russia, producing products strictly according to GOST. Litani has been operating under the network marketing scheme since 2016, offering potential partners three opportunities to become a member of the system (client, trainee, partner) and two options for earning income (up to 28% per distributor turnover and incentives in the form of a car and tourist trips). Despite a large number of competing companies, in recent years, Litani has been systematically expanding and conquering the market, which makes it a promising direction for earning.

Official website of the company -.

A network selling a wide range of quality household goods (environmental detergents and cleaning products, textiles, household appliances, car care products), operating since 1998. Despite the fact that the company is Russian, the products offered to consumers are supplied from European countries and the USA. Currently, it has registered more than 500,000 distributors distributing goods in the near abroad. A cumulative marketing plan is offered for partners, according to which you can receive discounts and earn on retail sales, get a trade loan, and also secure interest payments from the turnover of the involved team.

A young Russian MLM network that has been operating since 2014 and is characterized by stable growth. The main product is Omegaferol oil, which consists of plant components. Dietary supplements and other products for a healthy diet are also presented. The cooperation scheme offers two formats: linear when cooperating as a client (discounts on products) and binary when forming a partnership (building a balanced network).

Summing up, it is worth noting that the list of network marketing companies in Russia is regularly updated with new projects, which can also be an excellent start for you in the MLM business. On the other hand, before entering into a partnership, it is important to analyze not only the terms of cooperation, but also the relevance of the product itself with which you have to work.