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 entitled - the principles network marketing actually have similarities with 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 a company 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 possibilities to attract new customers and get "fast" 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. From positive sides: 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 required condition! 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 very long validity period - this is necessary in order for the client to purchase as often as possible this product. 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. Ideal item for trade is cosmetics, household chemicals, perfumes, hygiene products, .
Company rating
Continuing the topic, you can casually notice that a company for cooperation is chosen based on its financial indicators. 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.
Traditionally, on the first Sunday of December, Russia celebrates Networker's Day - a holiday for everyone involved in network marketing and direct sales. On this occasion, we decided to recall the most famous MLM companies and understand whether multilevel marketing is a serious competitor to retail.
Strong link
Multilevel marketing (MLM) is one of the methods of direct sales. With it, the sale of goods is carried out through a network of independent agents, each of which can not only sell the company's products, but also attract partners for this. At the same time, his income will be made up of his own revenue and a percentage of the revenue of the people he hires. Another name for the system is Network Marketing, which translates as "network marketing".
Profit from direct sales for distributors is quite low. They give most of the proceeds to the company and to higher-ranking distributors. The main profit comes from the sales of sponsored distributors.
MLM companies are often confused with pyramid schemes like MMM or Khoper Invest. Indeed, the "pyramids" took the principle of network marketing as a basis.
The participants who stand at their origins receive money from the contributions of "newbies". But, unlike network companies, "pyramids" do not offer specific goods, but in fact trade in air. Life cycle"financial pyramids", as a rule, do not last more than a few years - they exist only as long as new investors appear. While large MLM companies have been successfully operating for decades, they bring small, but stable income lower levels, and billions of dollars to those who stand at the source.
Pioneer Carl Rehnborg
The history of the creation of MLM companies is associated with the name of the entrepreneur Karl Rehnborg. In 1927, he opened a small food supplement business. own production. At first, Rehnborg sold products to acquaintances, who, in turn, shared rave reviews with their friends.
And there were those who wanted to. In 1934, Carl Rehnborg founded California Vitamins, which was later renamed Nutrilite Products. Very quickly, the company reached a turnover of several million dollars, without spending a single cent on advertising - only through direct sales.
To this day the most popular goods, sold through MLM marketing, are nutritional supplements and cosmetics.
AMWAY
Amway (American Way of Life) was founded in 1959 by Nutrilite Products employees Richard DeVos and Jay Van Endela. They decided to slightly change the principles of work that Nutrilite used. First, Amway began to sell different groups goods. In addition to dietary supplements, a variety of household chemicals and cosmetics. Now the company offers over 3000 items. Secondly, DeVos and Van Endela introduced a multi-level marketing plan for employees and began to pay remuneration not only from personally attracted distributors, but also for sales volumes of agents of all levels. This led to the rapid growth of Amway.
Now the company's turnover is over 8 billion dollars, and it ranks 25th among the largest private companies in the US according to Forbes. True, the history of Amway is not cloudless. More than once she became a participant in scandals. So, one of the former top distributors of the company, Eric Scheibeler, who is personally acquainted with the founders of Amway, in the book "Deceitful Merchants" accused the corporation of fraud and called it a totalitarian sect. This is not the first accusation of "Amveevites" of sectarianism. The training methods used in the company have been criticized more than once.
AVON PRODUCTS
The "long-liver" among MLM companies originates in 1886 with small firm called California Perfume. It was created by American David McConnell. Initially, the company's assortment included only 5 types of simple perfumes with floral aromas. Now AVON offers hundreds of cosmetics, perfumes, jewelry and accessories. The company's turnover is about 10 billion dollars a year, and the number of distributors around the world is in the millions.
Why McConnell is not considered a pioneer in the creation of MLM enterprises - history is silent. Perhaps the fact is that the company, although it used the principle of direct sales from the beginning of its existence, did not immediately come to a multi-level scheme. But the company AVON went down in history by being the first of the cosmetic giants to refuse to test products on animals.
Mary Kay
Another American corporation. Created in 1963 by Mary Kay Ash and named after the founder. It offers hygiene products, cosmetics and perfumes of the middle price segment. Ranked 6th in the world among direct selling companies in 2012.
Mary Kay's "chip" is that its consultants do not just sell products, but act as "beauty consultants". That is, they undergo basic skin care training. The second feature is that the territories are not assigned to a specific consultant: they can hire their agents anywhere in the world.
Like Avon, Mary Kay stopped testing its products on animals in the early 90s, but resumed it in 2010. For which she was severely criticized by the "greens".
ORIFLAME
The Swedish cosmetics concert Oriflame was founded in 1967 by brothers Jonas and Robert af Jochnik. In the early years, only one product line was sold, now the range includes about 1000 items of cosmetics and perfumes. The annual turnover is about 2 billion dollars, the number of consultants in the world is over 3 million people.
Oriflame positions itself as an environmentally friendly company and even prints catalogs on paper, which is produced from artificially planted forests. Therefore, Greenpeace people do not attack the company much. But she came to the attention of the tax authorities. In August of this year, the Russian representative office of Oriflame and non-payment of taxes for several million rubles.
FABERLIC
The first Russian MLM company was founded in 1997 by entrepreneurs Alexander Davankov and Alexei Nechaev. The original name is Russian Line, the Faberlic brand was registered in 2001. The company currently operates in 20 countries, including Poland, Germany, Romania and Hungary.
The company considers its know-how to be "oxygen cosmetics" - face and body care products based on perfluorocarbons. Faberlic's turnover is now over $250 million a year.
KIRBY
The company for the production and sale of vacuum cleaners this year celebrates its 100th anniversary. It was founded in 1914 and bears the name of the developer of the first vacuum cleaner models, Jim Kirby. "Chip" of the company - in certain period it sells only one model of vacuum cleaners. After the model becomes obsolete, it is removed from production and they start selling a new one.
Kirby is the most scandalous representative of the MLM diaspora. Every year, US consumer protection agencies receive dozens of complaints about the incorrect actions of the company's distributors. Allegedly, they use severe psychological pressure to force the client to give money for expensive equipment (for reference, the price of a Kirby vacuum cleaner starts at 100 thousand rubles). Russian forums are also full of messages: “Kirby vacuum cleaners are a scam, a scam, a divorce!”. Nevertheless, the company continues to operate in Russia and in 70 other countries around the world.
HERBALIFE
Created in 1980 in the USA, it offers products for weight loss, healthy nutrition and skin care. Herbalife International is now led by former Disney CEO Michael O. Johnson, and scientific developments in skin care, Paolo Giacomoni, who previously worked for Estee Lauder and L'Oreal.
Herbalife is the first American MLM company to open a representative office in Russia. This happened in the early 90s and coincided with the appearance in Russia of a huge number of financial pyramids. Therefore, many still mistakenly rank HERBALIFE among them.
The debate about whether the MLM business is good or bad continues to this day. Some extol multi-level structures, seeing them as opportunities for quick earnings, others condemn the very principle of building pyramids. Business analysts do not agree. Some predict that the direct selling system will soon replace traditional retail, others believe that retail and electronic commerce over time will kill MLM. However, network marketing has been around for decades and is not going to go down just yet.
Alena Yarkova almost got into the network
Illustrations by Dmitry Shevchuk
Hello, friends!
As a person who has a passion for all kinds of analytics and statistics, I decided, purely out of curiosity, to look at the statistics of queries on the Internet for a key phrase “registration in… followed by company name”. And find out for yourself which network company enjoys the most attention from those who want to connect their fate with network marketing. On the Internet, of course. 🙂
To collect statistics, I used the Yandex-wordstat service, with which I regularly consult about site traffic on keywords and phrases.
Without further ado, I made the algorithm for collecting statistics extremely simple - I consistently entered the phrase “registration in Faberlik” into the search box, “registration in oriflame” and so on. Moreover, the service gave me, for example, that people are much more likely to type like this: that is, the phrase back and forth. But it doesn't change the essence.
Another point, it happens that search phrases contain various spellings of the company, for example, “avon”, “avon”, “avon”. In this case, I did not sum up the number of all requests with different spellings of the company name, but simply took the most popular phrase. Because if I also added, the stratification in the top ten would be even more contrasting.
In the process of my research, it turned out that only eight got into the Top ten popular companies that crossed the figure of 100 requests. The rest could not cross the threshold of 100 requests for the phrase “registration in (-company-)”.
So, first place and the people's love was occupied by the company Oriflame With 1774 interested in the opportunity to register.
Oriflame statistics
Second place With 1142 "votes" won the company Avon, although it is not a pure network, but the brand is very famous and popular. Although Avon is ahead of the Leader in our rating in terms of sales, there are fewer people who want to subscribe there. Probably everyone has already been “rewritten”. 🙂
Avon Statistics
The third place of honor is held by the company, the largest Russian grid company - 824 "vote".
Faberlic statistics
Interestingly, all three leading brands are “cosmetic” companies (in the sense that the main product core is cosmetics), apparently the most attractive product for occupation. network business and direct sales.
Fourth place occupied by the company Vision – 499 "votes". Although I suspect that many of the requests were for a different Vision. Most likely someone wanted to know how to register the Nero Vision computer program. 🙂 There may be an error in the vote count. I immediately made a reservation, there may be inaccuracies.
Vision stats
Following on the heels comes Amway – 488 requests, and an honorable fifth place. Do not be offended Amway, let us offer you to share the fifth place with the Visioners.
Amway statistics
On the sixth bedside table debutant Russian market- German company LR – 163 request. Apparently Heinrich Erdman and a galaxy of Frenchmen who once conquered Russia in the dashing 90s know how to stir up interest in network marketing and their company. Who is last in line for Polo?
LR statistics
Seventh place from the network giant in Ukraine and some regions of Kazakhstan - the company Tian De. Legally registered in Russia and selling Chinese goods the company has collected 134 request.
Tian De stats
Rounding out the Top 8 Top Ten Most Requested Registrations is a company Siberian health , scored 129 "votes". Eighth place!
Siberian health
The rest of the companies, such as Mary Kay, Coral Club, Tentorium, Herbalife, Argo and many others did not receive more than a hundred requests per month, so they did not make it to my list.
What conclusion can be drawn from these statistics? I draw the following conclusion: people are interested in the products offered by network companies, people are interested in the companies themselves, people want to engage in network marketing. And the Internet will only grow. So we have something to work on, friends.
Gentlemen and ladies, you can draw the appropriate conclusions.
P.S. Here you are eshkin cat! Completely forgot! Nominee out of competition! 720% per annum on deposits, fans of Sergey Mavrodi receive out-of-competition (for non-compliance with some principles of network marketing) place of honor in my report With 1478 impressions. The “partners” in Russia have not yet been intertwined! 🙂
Statistics MMM-2011
Top 100 direct selling news 2017– the most significant rating for network companies. This event is awaited by many companies around the world - why?
The annual DSN Global 100 is compiled by Direct Selling News magazine. The reputation built on positive industry reports has made DSN magazine a trusted journalism resource for the direct selling industry. Since 2004, the magazine has been dedicated to the positive stories of direct selling companies, including the opportunities provided to millions of independent entrepreneurs, products and services that have helped change the lives of consumers, and the philanthropy of industry members who have consistently reached out to those in need.
Top 100 dsn 2017 is a list of the most profitable direct selling generating companies in the world for 2017.
This indicator is very important and shows the stability of the company, their growth and development.
You can also get acquainted with the best system to build an MLM business in the CIS and EUROPE
System for building large structures in mlm business. Information from practitioners! Click to find out...
| 2017 DSN Rank MLM company | Company | G100 2017 Revenue (FY2016) |
|---|---|---|
| 1 | Amway | $8.80 billion |
| 2 | Avon | $5.70 billion |
| 3 | Herbalife | $4.50 billion |
| 4 | Vorwerk | $4.20 billion |
| 5 | Mary Kay | $3.50 billion |
| 6 | Infinitus | $3.41 billion |
| 7 | Perfect | $3.06 billion |
| 8 | Quanjian | $2.89 billion |
| 9 | Natura | $2.26 billion |
| 10 | Tupperware | $2.210 billion |
| 11 | Nu Skin | $2.208 billion |
| 12 | Primerica | $1.52 billion |
| 13 | JoyMain | $1.49 billion |
| 14 | Jeunesse | $1.41 billion |
| 15 | Oriflame | $1.38 billion |
| 16 | new era | $1.16 billion |
| 17 | Telecom Plus | $1.12 billion |
| 18 | Belcorp | $1.09 billion |
| 19 | Ambit Energy | $1.08 billion |
| 20 | USANA | $1.01 billion |
| 21 | Pola | $1.004 billion |
| 22 | young living | $1.00 billion |
| 23 | SUN HOPE | $940million |
| 24 | DXN | $927.0million |
| 25 | World Ventures | $926.6million |
| 26 | Isagenix | $924.3million |
| 27 | Yanbal | $924.0million |
| 28 | Team Beachbody | $863million |
| 29 | Market America | $798 million |
| 30 | A C N | $750million |
| 31 | Stream | $735million |
| 32 | Tiens/Tianshi | $695million |
| 33 | It works! | $686 million |
| 34 | Team National | $659million |
| 35 | Yandi | $644million |
| 36 | Miki | $597million |
| 37 | advocare | $586 million |
| 38 | Arbonne | $541million |
| 39 | Plexus Worldwide | $532million |
| 40 | Rolmex | $515million |
| 41 | PM International | $460 million |
| 42 | Scentsy | $456million |
| 43 | legal shield | $450 million |
| 44 | Le Vel | $449million |
| 45 | Omnilife | $375.93million |
| 46 | YOFOTO | $375.92 million |
| 47 | Fordays | $365million |
| 48 | Faberlic | $356million |
| 49 | Kang Ting | $348 million |
| 50 | Nature's Sunshine | $341million |
| 51 | 4Life Research | $328 million |
| 52 | AnRan | $321million |
| 53 | Naturally Plus | $300 million |
| 54 | NHT Global | $288 million |
| 55 | LR Health & Beauty Systems GmbH | $286 million |
| 56 | Merro | $283 million |
| 57 | Menard Cosmetics | $267million |
| 58 | Family Heritage Life | $265million |
| 59 | Viridian+ | $263 million |
| 60 | Pro Health | $257million |
| 61 | noevir | $249million |
| 62 | Hy-Cite Enterprises | $233million |
| 63 | Resgreen | $232 million |
| 64 | KK Assuran | $229million |
| 65 | Take Shape For Life | $222.4million |
| 66 | CUTCO | $222.0million |
| 67 | Southwestern Advantage | $218 million |
| 68 | Life Vantage | $207 million |
| 69 | kangmei | $206 million |
| 70 | pure romance | $203million |
| 71 | Alphay International | $200 million |
| 72 | princess house | $195million |
| 73 | Mannatech | $180 million |
| 74 | Charles | $173 million |
| 75 | BearCere'Ju | $170 million |
| 76 | youngevity | $163million |
| 77 | Seacret | $161million |
| 78 | Kasley Ju | $154.4million |
| 78 | Longrich | $154.4million |
| 80 | Giffarine Skyline Unity | $154.0million |
| 81 | Marketing Personal | $153million |
| 82 | ARIIX | $151million |
| 83 | World Global Network | $146 million |
| 84 | Naris Cosmetics | $144million |
| 85 | FuXion Biotech | $135million |
| 86 | New Image Group | $124 million |
| 87 | Ideality | $115million |
| 88 | golden sun | $103million |
| 89 | Zurvita | $100million |
| 90 | Diana Co. | $98 million |
| 91 | Vestige Marketing | $97million |
| 92 | Global Ventures Partners | $92.1million |
| 93 | Koyo Sha | $91.8million |
| 94 | Total Life Changes | $88 million |
| 95 | Immunotec | $82.2million |
| 96 | Jimon | $77million |
| 97 | Nefful | $75 million |
| 98 | Captain Tortue | $71million |
| 99 | Shinsei | $69.4million |
| 100 | Vision International People Group | $69.0million |
What is the best MLM company? Quite a few copies have been broken on this issue. It is understandable - for everyone, their own company is the best. But there is at least one objective criterion by which you can rank the world's network marketing companies - this is sales. The MLM-PRO consulting group publishes a ranking of the top 50 global MLM companies in terms of net annual revenue.
The list was topped by a wide margin of honored industry heavyweights - Avon and Amway, and this is not surprising. But there are also some interesting newcomers in the ranking - companies with less than 10 years of history that have shown tremendous growth. Sentsy and Ambit Energy have proven how fast it is possible to build a world-class company in the MLM industry.
And we just remind you that MLM-PRO will be happy to help you create your own MLM company, and who knows, maybe in a few years your company will be on this list!
|
Company |
Annual revenue |
Year of foundation |
|||
|
Avon Products Inc. |
Beauty, fashion, cosmetics |
||||
|
Cosmetics, food and drinks, home care, dietary supplements |
|||||
|
Cosmetics and health |
|||||
|
Natura Cosmetics |
Brazil |
Cosmetics and health |
|||
|
Vorwerk & Co. KG |
Germany |
Cosmetics and health, home care |
|||
|
Cosmetics and health |
|||||
|
Tupperware Brands Corp. |
Packaging and serving, beauty and personal care |
||||
|
Oriflame Cosmetics |
Luxembourg |
||||
|
Nu Skin Enterprises Inc. |
Cosmetics and hygiene |
||||
|
Cosmetics and hygiene |
|||||
|
Primerica Financial Services Inc. |
Financial services |
||||
|
Electricity and gasification |
|||||
|
Great Britain |
Phones, traffic, electricity, cashback cards |
||||
|
Yanbal International |
Skin care, cosmetics, jewelry |
||||
|
Ambit Energy, L.P. |
Energy |
||||
|
South Korea |
Cosmetics and hygiene, drinks |
||||
|
USANA Health Sciences Inc. |
|||||
|
New Era Health Industry Group, Co., Ltd. |
Cosmetics, health, cleanliness |
||||
|
Telecommunications and energy |
|||||
|
Cosmetics and hygiene, food and drinks, decor, kitchen |
|||||
|
Nutritional supplements, skin care, weight management |
|||||
|
The Pampered Chef Ltd. |
Kitchen, cooking |
||||
|
Party Lite (Blyth) |
Candles, candlesticks, home decor and comfort |
||||
|
Thirty One Gifts LLC |
Clothing and accessories, home comfort |
||||
|
Market America Inc. |
Health, Supplements, Weight Management, Financial Services, Pets, Home & Garden, Internet |
||||
|
Menard Japan Cosmetics |
Skin care, cosmetics |
||||
|
Cosway Corp. Ltd. |
Malaysia |
Dietary supplements, skin care, home care, car care, clothing, food and drink |
|||
|
DXN Holdings Berhad |
Malaysia |
Food and drink, decor, cuisine |
|||
|
For Days Co., Ltd. |
Cosmetics, food and drinks |
||||
|
Skin care |
|||||
|
Better Way Co., Ltd. |
Cosmetics |
||||
|
Nature's Sunshine Products, Inc. |
Skin care, self care, cosmetics |
||||
|
WIV Wein International AG |
Germany |
||||
|
Arbonne International LLC |
Anti-aging cosmetics, body care, health |
||||
|
Southwestern/Great American Inc. |
family education |
||||
|
Cosmetics, personal care, home care |
|||||
|
Noevir Holdings Co., Ltd. |
Skin care, dietary supplements, cosmetics |
||||
|
Pro-Health (China) Co., Ltd |
Healthy food, skin care |
||||
|
LR Health & Beauty Systems |
Germany |
Cosmetics, personal care, dietary supplements, jewelry |
|||
|
Eureka Forbes Limited |
Vacuum cleaners, air fresheners, security systems |
||||
|
Energy, security |
|||||
|
Charles Corp. Ltd. |
Cosmetics |
||||
|
Healthy food, food and drinks, cosmetics, household goods |
|||||
|
Isagenix International |
Supplements, skin care, weight control |
||||
|
4Life Research L.C. |
Immune support, health |
||||
|
PM International AG |
Germany |
Supplements, healthy eating |
|||
|
Team National Inc. |
Home care, jewelry, dietary supplements |
||||
|
Japan Life Co. Ltd. |
Magnetic therapy, skin care, diet nutrition, dietary supplements |
||||
|
Energy |
*according to WDSA, 2012 data