Nowadays, quite often on social networks you can receive messages about job offers via the Internet.
You are promised the absence of any financial investments and a time investment of only 2-3 hours a day.
At the same time, they guarantee that with such work, in six months you will be able to achieve an income of 30 thousand rubles per month.
Let's consider whether the network marketing business idea is as bad as it is made out to be.
There is nothing wrong with the idea of network marketing. It was conceived about 60 years ago as a way for the manufacturing company to save money.
At the same time, the company saves on advertising, intermediaries, warehouses, etc.
Then network marketing began to conquer the Internet, and things moved faster.
Now there is not a single person left who has not received an offer of such income at least once, but the reputation of network marketing has already been damaged.
People were initially distrustful of “street traders,” who were quite intrusive for the most part.
Only a few with natural sales talent and knowledge of psychology were able to reach career heights. You can try yourself in network marketing and also achieve serious results with hard work.
Now, after the story with Sergei Mavrodi and MMM, people think that they are trying to be sucked into a financial pyramid and do not respond to such messages.
There is no product in a financial pyramid, and money is obtained from new members of the pyramid who pay a fee to join.
Pros and cons of network marketing
In network marketing, money is received in accordance with the turnover of people invited by a higher-level consultant.
By inviting and training new participants, you can rise quite high and earn yourself a comfortable old age.
Why do many people still have such a negative attitude towards such a seemingly profitable occupation?
When surveying people on social networks, it turns out that 30% obviously have a bad attitude towards network marketing, having heard a lot from friends, 30% are already members of some network company, and 30% tried it, but it didn’t work out for them.
The thing is that network marketing leaders deliberately hide some information about their work and teach their newcomers to do the same.
2-3 hours a day is very little; you need to work from dawn to dusk.
Moreover, no one guarantees that you will find new people for your structure.
The market is now oversaturated with goods, the competition is enormous, and yet network marketing is finite.
Although networkers claim that income is endless, it seems that there are so many consultants that they are already inviting each other into their business.
People are assured that complete financial freedom and passive income await them.
However, this cannot be guaranteed; people will leave your branch, trade turnover will decrease, and income will fall. Companies have done well in this regard.
Until a certain turnover is achieved, people work for free, “feeding” the upper strata, and then register as an individual entrepreneur to receive the money they earn into their current account, and pay taxes themselves.
Also, network marketing leaders have a strong influence on people’s psychology, telling them that they will no longer need to work “for their uncle,” but in reality this is not at all the case.
They say that only stupid and lazy losers can fail, but everyone has different abilities and inclinations.
Network marketing is not for everyone , and we must honestly warn about this, otherwise the next newcomer, disappointed, will leave this business and spread rumors that it is a deception and a scam.
If you still close your eyes to these rather significant nuances, it should be said that you can still make money, albeit with great difficulty, by attracting newcomers.
But something needs to be changed in the functioning of the network marketing model, because it no longer works properly.
It has turned into manipulation and playing on human weaknesses, because otherwise there is nowhere to attract new people.
How I sold “online” cosmetics
The crisis has already gone through my dressing table and wardrobe. There is no and never will be money for a new dress and expensive Japanese shampoo. Thoughts about a part-time job are racing through my head. But where to go?
“Take the Oriflame cosmetics catalogue, if you like anything, call me,” a nurse in a children’s clinic gifted me with a glamorous book and a brilliant idea.
If a specialist who takes tests can sell cosmetics, then for me, a journalist specializing in “beauty,” it’s all the more worth trying.
You always need soap!
- Just think, there's a crisis. Even during the war, our grandmothers exchanged a loaf of bread for a tube of lipstick! People will still buy soap, gels and shampoos! — my new “teacher”, coordinator Natalya, a bright blonde just over 35, dispelled my doubts. I left a request on the company’s website. And literally the next day Natalya called me and offered to meet me in a cafe.
You sell cosmetics, and for every 1000 rubles, 250 are yours,” Natalya explained casually. — You will show catalogs and talk about products.
I got ready to listen to a tedious lecture and figure out how best to sell these magical tubes and bottles to friends and acquaintances. Suddenly Natalya abruptly changed the topic.
— But the most interesting thing is that this is not a sale at all, but a business with Oriflame! — My sensei’s eyes lit up with a carnivorous light. — Income at first up to 20 thousand rubles per month. You will work not for your uncle, but for yourself. You will have your own small business - without the chance of going broke.
Next, Natalya took out a blank sheet of paper and drew my future with numbers and percentages. With incomes of thousands of dollars, parties with stars in the company of millionaires and trips abroad.
It turned out that in order for me to have all this, I need one thing: to bring people to such meetings. And persuade me to do business with Oriflame. Those recruited by me will also sell cosmetics and recruit others. And I will have a certain percentage from this. The larger my network, the higher the income. The scheme is as old as time...
Natalya treated me for more than two hours. I understood that my brain was being flattened by NLP tricks. But it was impossible to stop it, the next verbal trick pressed me into the seat.
I left the cafe table completely defeated.
And Natalino still sounded in my head: “Do you remember Herbalife? He grew up just during the crisis of the 90s. Tamila Polezhaeva, the former legendary seller of this cocktail, became the “Sapphire President” of Oriflame! The direct sales business is growing by leaps and bounds during the crisis!”
Lipsticks are not dietary supplements. But I'm not welcome...
Having honestly tried to get my friend to agree to a two-hour torture meeting with an Oriflame agent, I almost got punched in the eye. It’s not pleasant to hear “Are you stupid?” from a loved one.
And a stranger would simply send it. Considering Natalia’s layout, “of the 20 who came to the meeting, only 5 will continue to cooperate with the company. And only 1 will look for new people,” I risked losing friends in a month or two. Gain a bad reputation from friends. And at the same time, have a maximum of one or two people in your “network”.
And I also sell cosmetics, I bring joy, one might say, to people, and not slip dubious dietary supplements!
There was no, I went to a meeting with a representative of another cosmetic company.
Tatyana turned out to be a plump, serious student with a mustache and a complete lack of paint on her face. She really tried to teach me how to sell cosmetics from this American company. I honestly warned that if the client is allergic to the product, I will have to return her money and issue a refund. And I gave her 4 catalogs for free. Cheaper Oriflame cosmetics means more chances to find clients!
I handed catalogs to women at work with a mysterious smile. She hummed inexperiencedly in response to the questions: “Which cream is best for me?”
But by hook or by crook, within a week I collected an order for 1,700 rubles. It was New Year's Eve. There is no time for people to go shopping, but gifts need to be given!
We met Tatyana again at the post office. She quickly increased the order amount to 2 thousand. But what about it? And new catalogs need to be ordered (they change every 3 weeks). And to send samples - it’s not easy to explain the aromas of perfumes on your fingers.
Two days later an SMS arrived. They say, your order has been placed, you need to pay 1400 rubles. That is, the profit was 300 rubles.
Half of them went by taxi - go and carry two heavy boxes! People are not stupid, they take whatever is cheaper and larger: liter bottles of bath foam... And then there’s the husband on a business trip...
There are 150 rubles left in net income. Hmmm. So much for cheap cosmetics.
Secret of success
I was clearly doing something wrong. People all over the world sell ladies' items - do they really get such pennies?
For secret knowledge, I went to a special seminar for consultant representatives.
About a dozen recruits gathered in two halls. Mostly young girls.
“Tell me your name and the last amount of the order,” the presenter of the seminar suggested with a smile.
Oh, I'm clearly an outsider. That pretty Galina has her last order for as much as 17 thousand! Wow!
TRICKY QUESTION
Is she natural?
Many women do not like “online” cosmetics, they say they are allergenic. For example, in the “Naturality Rating” recently published by Novosibirsk scientists (see the “Cosmetic Bag_Online” blog on the KP website), Avon took 174th place, Mary Kay - 182nd, Oriflame - 186th. This means that they contain a lot of chemical additives that extend the shelf life of cosmetics. The more there are, the higher the possibility of an “inappropriate” skin reaction to lipstick, cream or mascara.
“I just take a lot of catalogues, up to 100 pieces,” the girl explained the secret of her success. — And I hand them out at the metro. Catalog in exchange for a phone number. And then I call, and people order at least something.
It turns out to be about five and a half thousand rubles of net income for a week or two. “One inconvenient thing is delivering orders,” Galya sighed. — Clients are scattered throughout the area, until you run around everyone. But now I don’t work anywhere else - I just have time to sell cosmetics.
Okay, stop! If I spend a lot of time wandering around the city, I will definitely be kicked out of work! Because of a measly 5 thousand!
“One of my friends was kicked out,” neighbor Elena, a consultant with extensive experience, whispered in her ear. “The boss at work found out and sent me on leave without pay. Like, go and trade. Now she is thinking about doing business with a cosmetics company. You know that here you can not only sell cosmetics, but also make a career?
Oh my God! Twenty-five again.
- And what do you want? — Elena voiced my conclusions. - If you don’t work “for the network”, but supply yourself and friends with lipsticks and lotions, then the benefits are nothing at all. Well, at most you will get the same cosmetics for free. If you want good money, you need to throw yourself into business...
And it’s not a fact that you will succeed. Only a few people manage to climb the network ladder, and those with business acumen will not be lost in a crisis.
If it presses me, I’d better go wash the floors.
If you do go to the networking community
1. Choose a company with experience. One-day deals are not uncommon in this market. And often these are banal financial pyramids.
2. If in a company you first have to buy goods with your own money, and then try to sell them, leave. You will be skillfully promoted to a large order, which you will not be able to implement without experience.
3. You must really like what you are selling. Otherwise the whole idea is pointless. You deceive both your clients and yourself.
NUMBERS
Products sold using the direct sales method
Cosmetics - 90.2%
Household goods - 6.2%
Dietary supplements - 2.1%
The author of the material is waiting for your feedback on the website
Network marketing technology
There are two ways to make money from an online business:
- Simple direct sales with receiving a percentage of each product order sold.
- Building an affiliate network, when you have a percentage of sales from each order of your partners throughout the chain. That is, you attracted five people to sell goods. Each of your partners, in turn, attracted two more people. From this entire sales network, you have your own percentage. And everyone in this chain has their own bonus from product sales.
As a rule, when starting a marketing business, you first learn direct sales, product advertising and communication skills. And then, having gained experience, you build your sales network.
Binary business plan.
It implies the presence of only 2 profiles under your profile, that is, in some place in the structure of the MLM company your profile is located, under it there are 2 profiles of your invitees, under them each has 2 profiles of their invitees, etc. We will talk in more detail about the marketing plans themselves later, but now we will just look at their advantages and disadvantages.
Advantages of a binary business plan. You do not need to confirm the operation of your business place every month (usually the purchase of products occurs once a year). You can earn significant money ($1000) after 2–3 months of active work (however, according to statistics, only 1–2 people out of 100 achieve such success). To earn ($1000 - $3000) you need a small number of active partners (about 20 - 30). The number of personal invitees is less than in companies with a linear business plan.
Flaws. Products are usually purchased for a larger amount than in projects with a linear marketing scheme. The maximum income is limited, although at a fairly high level (let's say 5 - 10 thousand dollars per week). There is a minimum amount of payments according to the marketing plan, that is, you receive money not from one of your partners as in a linear business plan, but from a certain amount.
The binary marketing plan is often used by Asian networking companies such as Fohow, Qnet and others.
