What is network marketing: the advantages and disadvantages

Network Marketing or MLM.Who has not heard about him today.

Yes, it's probably hard to find such a person.

And yet, most people who are not tightly connected with this kind of activity, really do not know, what network marketing is .

Someone is too demonizing MLM, someone on the contrary deifies him and considers almost the only way to earn.

And someone simply does not take seriously, because it associates network marketing with a girlfriend that every month brings a look through the colorful catalog and provides an opportunity to buy lipstick at a discount.

And the most interesting is that everyone is right, because they are looking at MLM from their wheels.

What is network marketing as a type of business?

Network marketing( MLM) is a special concept of distribution of goods and services based on the work of independent sellers, each of which has the right not only to sell goods and services, but also to attract other distributors to the company.

Earnings at the same time depends not only on the quantity of goods and services sold, but also on how much people you brought into the company managed to realize.

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Network marketing is a kind of pyramid, but unlike financial pyramids, this business is quite legal and can bring you good earnings, provided, of course, that you will begin to cooperate with a serious company that produces quality goods and services at adequate prices.

History of MLM

It is commonly believed that the history of network marketing began in the mid-1930s.

It was then that the owner of the company California Vitamins for the sale of vitamins and food supplements Carl Rehnborg decided that the products he manufactured would be sold not by professional sellers, but by consumers themselves.

Moreover, these same consumers will attract other customers to cooperate, thus forming a network.

Thanks to this approach, for a few years the young company could boast a turnover of 7 million dollars.

In the late 1930s, Carl Renborg renames his company in Nutrilite Products, but the principle of product distribution remains unchanged: it is sold by consumers themselves, armed with samples and methodologies.

These same customers bring other fans of nutritional supplements Nutrilite Products, who want not only to consume them, but also to sell.

Renborg's business is growing by leaps and bounds, and proves to all skeptics that network marketing has a right to life.

A new round of MLM development comes at the end of the 1950s.

It was then that two former employees of Nutrilite Products De Vos and Van Andela decided that they were no worse than Renborg and founded the company American Way Corporation, also working on the principle of network marketing.

It is still successfully operating in the market under the name AMWAY.

The flowering of the same network marketing falls on the 1980s - early 1990s.

In the US, with the help of MLM technologies, they spread everything from the household appliances to the drugs.

Then it was even rumored that soon the traditional type of trade, and even the shops themselves will disappear without a trace and the world will be ruled by network marketing.

Today we see that these forecasts are far from reality.

Yes, MLM companies are still successfully working in the markets of various fears, including - in the former Soviet republics, but they have not managed to supersede traditional trading floors.

According to the latest data, the turnover of large network companies( and today there are at least 4,000 thousand) is over 300 billion. US dollars.

Principles of network marketing

Since network marketing is a kind of pyramid, your earnings depend not so much on the number of your customers who purchase products as on the incomes of the distributors you attract.

From each earnings of the distributor, which you brought, you get the specified percentage of income.

That's why MLM companies are well earned by those who are at the top of the pyramid and has the most widespread network of attracted distributors.

Despite its cosmopolitanism, network marketing depends on the laws of the country in which the company's representation is opened.

For example, speaking of Russia and Ukraine, network companies are prohibited from:

attract consultants to persons who are under 18;
to promise a specific salary, because with the distributors there is not an official labor contract;
to sell dangerous and unlicensed products, etc.

If you want to become a distributor of a network company, then it's easy enough to do this :

Agree to persuading others to cooperate with another distributor, or you yourself go to the office of the company you want to work in.
Fill in the contract form.
Get training( often - it's just a conversation with an experienced consultant).
Buy catalogs or product samples.
Start selling goods and services to customers and involve new distributors.

Remember that if you come to work in the MLM company, you will become a freelancer, which is not subject to social guarantees, sick leave, vacation.

Even after many years of work, you can not count on a pension from the state, because you did not pay contributions to the Social Insurance Agency, etc.

In addition, you have no guarantees that after a while the MLM company with which you have long cooperated will not close your representation in your country and you will not be left without work.

Network marketing is the pros and cons of

If you consider network marketing as a way of earning, then it is worth knowing not only about its benefits, but also about the shortcomings.

This will help you make a well-considered decision when you decide to make MLM your main profession.

This information will not be superfluous for those who consider network marketing as a source of additional income to the official salary.

Advantages of network marketing

The main advantages of network marketing are those who seriously deal with them:

Ability to learn.

If it is a serious network company, then, taking care of both the reputation of their corporation, and the amount of their own earnings, that is why they constantly raise the qualification level of their employees.

For them organize seminars, courses, meetings with mentors and so on.

Sometimes training is carried out at the expense of the students themselves, but there are also pleasant exceptions to the rules.
Free schedule.

You do not have to sit in the office at a time due to the boss, because the boss is you.

You can give work 3 and 10 hours a day.

It all depends on its effectiveness: if you made a profitable transaction, you can reward yourself with rest, but there are also unsuccessful days when you have to work for a long time, but, alas, to no avail.

In any case, you form your own work schedule.
Unlimited earnings.

Ideally this is true: no one sets a maximum income limit for you.

If you are a small person, creative, able to approach non-standardly to the conquest of the client and ready to work hard, your earnings will be quite decent and will grow as your qualification improves.
Financial independence.

Starting to engage in network marketing, you actually get your own business, which you can strengthen and expand.

If you sell high-quality products and fulfill all obligations to customers, then your client base will grow, and accordingly the profit will grow.

And the amount of earnings will not depend on the captain's whim, but only from yourself.
Cohesive team.

Those who have at least once worked in the company's MLM, can confirm how easy it is to start working here: no gambling games, no beginner's acceptance and standing up from old people.

More experienced employees will always help you, because the level of your earnings affects their income and status in the company.
Interesting work.

Of course, if you have all the data to engage in network marketing, you will do interesting and creative work.

MLM - this is not a tedious sitting in the office, it does not have to imitate the activities to hold out until the evening. You definitely will not miss.

Disadvantages of network marketing

Has network marketing and some disadvantages, although they do not quantify the advantages:

Unstable earnings.

If you work in an organization with a specific salary, then you know for sure that at the end of the month you will get the exact amount of money.

In network marketing, a completely different situation is observed: successful periods can be replaced by lack of money.

To earn a stable, you need to have a large client base and constantly expand it.
Material investments.

Calling for network marketing, you will be convinced that this is a business without investments.

In reality, this is not the case, because for your money you will have to buy product catalogs, as well as its testers, to demonstrate to the client.

Some MLM companies require their distributors to go in the clothes of corporate colors or wear some form elements - this is also all you have to buy at your own expense.
Emotional loads.

You know as well as I do how people relate to product distributors: at best, like annoying flies, which you need to get rid of at the earliest, at worst - as scams, which are trying to vparit some muck.

To this you need to be ready and treat the reaction of people in a philosophical way.

And yet humble yourself with the fact that from constant communication with people you will be very tired.

How to earn your first million: 3 fast ways + 6 tips

It should also be remembered that network marketing is not a business for everyone.

If you find it difficult to leave your comfort zone, talk to strangers, if you are tongue-tied, do not possess the gift of persuasion, and in general communication is not your hobby, if you are ready to drop your hands at the first failure, then you'd better do something else.

With MLM, you are unlikely to have a long relationship.

Network marketing is an opportunity to earn, but not for all

I'm not a supporter of demonizing network marketing, but I know that I would not have made it that way.

But among my acquaintances there are those who work in MLM companies.

Someone treats their work more seriously and, in general, earns well, someone uses network marketing as an opportunity to purchase discounted cosmetics, which he himself uses.

But sad stories, when scammers under the guise of network marketing lured money from gullible people who wanted to become distributors, I do not know, although there are plenty of such stories on the net.

Common myths surrounding network marketing

I know that network marketing is surrounded by different myths.

Chose the 5 most common and asked her friend Alexander to confirm or deny them.

Alexander has been cooperating with AMWAY for a long time.

He started working in network marketing more than 10 years ago, when it was still possible to form his network.

Despite the fact that most of the distributors earn depends on the number of dealers involved, Sasha went on a different path and started earning on sales of good, in general, goods.

The main source of attracting new customers from my friend is the Internet, or rather - social networks.

Claims that even in the worst months it will earn at least $ 70.

If you consider that he has a basic job, then a similar source of additional income is very good. Myths of network marketing:

Here you can earn a lot of money.

"Probably so," Sasha says, "but I have not met people who earn millions here".

To get rich in a MLM company, you need to become at its source.
This is not a serious job for students.

If you are going to apply this way to network marketing, then in this business you have nothing to do.

This is a serious work that requires a lot of work.
Horror, not work - run around with bags of goods and pester people.

"Attach" to people really have to, because without a conversation you can not sell any goods, nor draw a distributor.

But go to apartments with bags is not necessary, now there are plenty of other ways to attract customers and implementers.
There are some scammers in network marketing.

In order not to become a victim of scammers, do not contact frivolous companies that you do not know anything about or about those about which bad reviews go.

Serious players do not deceive their customers.
You can not earn anything in MLM.

You can, and I proved it to you on the example of Sasha.

I think that my friend would have earned much more if he had not had the main job, but he devoted all his time to network marketing.

Usually myths about the fact that you will not earn anything in MLM are spread by those who do not have this business.

But if someone failed, it does not mean that you will also come across the same.

How distributors communicate with people who slope to believe

to the above myths, the expert from this video will tell:

How to make money in network marketing?

Despite the fact that around the network marketing so many myths and omissions, you can earn this kind of activity, and it can be done very well.

If you feel the strength to do this kind of work, if you know that you are ideally suited for this business, start acting.

10 useful tips for those who want to earn money by doing network marketing:

Begin to work in a well-established, serious firm, in which you will not be required to invest a large amount of money: Oriflame, Emway, Mary Kay, Ivon, etc.
Here you can not at first earn a lot of money, but learn the basics of business.
Strive for development: attend all kinds of trainings, read a lot, learn from the experience of older colleagues, etc.
Carefully study the product that you are selling so that you can answer any customer question.
Create your own network, and not only seek to sell more goods.
Use different methods of product promotion: personal communication, via the Internet, with ads in free newspapers, etc.
Do not lie to the client, trying to sell as much goods and services as possible.
If you distribute quality products, then you do not have to put it on.
Look neat, speak competently and beautifully.
Do not intrude, if you feel that the consumer is not interested in what you offer him - it's angry, not encouraging.
Get ready for the fact that you first have to work for almost free, so do not rush to give up the main job until network marketing starts to bring really good money.
Do not give up before failure.
If one of your friends did not manage to earn money in network marketing, this does not mean that you will not succeed either.

Knowing, what network marketing is, you can always do interesting and profitable business that does not require special education.