What network marketing is, many people know. Some people even once worked in a similar system. For example, in times of crisis, this way of earning often becomes the only way out of a difficult situation. Network or multi-level marketing is a sales system based on attracting independent distributors. The income of each partner in it depends on two indicators. The first is the amount of goods sold. The second is to get interest from referrals. Referrals are attracted partners. The higher their income, the higher the income of the person who invited them to the network. About what network marketing can be argued endlessly. This direction has always been criticized.
First of all, he is condemned for his resemblance to the financial pyramids. Although it would be more correct to say that these financial pyramids are like MLM. A multi-level system, indeed, at any moment can turn into one of the fraudulent schemes. This has already happened, as a result of which several states had to pass laws to limit such activities. Network marketing, first of all, should be focused on marketing products. If it turns out that attracting referrals comes first, then this is a fraudulent system. Its essence is extremely simple. First, a group of newcomers is recruited, who are offered fabulous incomes. Then they acquire the products of the company, which they must sell. Not knowing the intricacies of such an activity, they cannot provide the desired level of sales. The company does not accept goods back. Thus, a sale occurs fraudulently. Often such organizations also offer paid tuition.
In Russia, many people did not understand what network marketing is. Because most schemes of this kind turned out to be elementary fraud. Network marketing in Russia gained distribution in the 90s. It was a difficult time for the country, when everyone tried to survive as best he could. Some individuals, guided by the experience of Western countries, decided to create network companies. Absolutely everything was sold by such companies, starting from products and ending with household chemicals. Most organizations built on fraudulent schemes. Despite all the criticisms of network marketing, it is a real business and provides an opportunity to get a good income. But only if the system is reliable. Of course, not everyone will succeed in such an activity. Personal sales are for people who can sell and make contacts. This is a system for leaders. It is estimated that only 5% of people have the skills of excellent traders.
Network marketing allows you to start a business with virtually no investment. However, it requires perseverance, patience and time. Only after a few years of work can a person get a good return on his activity. However, this is also characteristic of other activities. To answer the question of what network marketing is and what income it can bring, you need to look at Amway. This is one of the leaders in the niche. In the history of the organization, there were litigation and various charges, but it survived. Amway products are in demand in many countries around the world. Because they are high-quality and necessary. Also known is NSP. By producing useful goods, you can be sure of success. MLM companies are very mobile. They can survive even the worst financial crisis. It is noted that in difficult years, when many companies declare themselves bankrupt, multilevel organizations quietly exist. This is due to the specifics of their structure. Such systems are very flexible and do not require additional costs.