Foreign network companies, which are often referred to as MLM (Multi Level Marketing) came to Russia in the early 1990-ies. Many of our people who have a vague idea about entrepreneurship, hoping to make millions, engaged in distributing of dietary supplements, books, appliances, etc. Unit is indeed rich, while the majority are left with nothing. In the zero relation to MLM resulted in a PostScript to the ad candidates in the labor market: sex distribution does not offer. Now sale through catalogs, psychological training has not gone anywhere, and the army of consultants, supplemented by disappointed in people’s lives. News.ru have collected the top 10 ways network marketing is deceiving gullible Russians.
Occupation business network is positioned as the ability to quickly and without investment earn millions. Theoretically it is indeed possible in large cities. Trading without intermediaries, through direct personal contact, the seller implements the “jars” at factory price. He defines the shipping fees and margin. Sales usually take place on neutral territory, home or place of work of buyer.
The problem is that “millions of owners” of the MLM is really small. In a city with a population of 300-500 thousand people, as a rule, not more than a dozen. “Prize” places are always occupied by those who came into the business earlier than others. Therefore, the work of a consultant is often reminiscent of a tour on medium and small cities in the country.
Spend only inside the company
The bonus system is structured in such a way that the successful seller will be forced to spend their money primarily from within the firm. This applies to any type of income, with the exception that the scheme “buy cheaper — sell expensive”. Dividends from sales, a percentage of the plan execution only give discounts on the products of the company. The size depends on the status of the seller: senior consultant, Vice-Director, “gold”, “platinum”, etc. Receive these titles depends not only on its own sales, but from the ability to build a network of consultants.
“Pyramid” and the deification of the leadership
In MLM offering to sign for a discount contract with the firm, in fact, becoming her dealer. So growing the network. Man, “under which” tens and hundreds of active consultants can count on bonuses. It is in this sense a network marketing resembles a pyramid. At its head, of course, the head of the company. His word is law. That, however, does not prevent many members of one company to distribute catalogs of your competitors.
Over time, the newcomers are beginning to resemble an army of obedient servants, who grins at “processing” and raising standards (transition calculation period from calendar month to four weeks and from four weeks to three) without any financial compensation. All for the sake of illusory millions.
An entrepreneur can be anyone
One of the slogans of MLM provides that a successful business could be one. At these words readily respond dissatisfied with their economic position, social status, failures in professional and personal lives of people. In the network marketing business those almost half. A quarter-the fifth part comes from the fact that it can not find a lot of things in life. Many do looking for love, not millions.
Often newly created in the secrets of network marketing are beginning to acquire too much product, giving it for their sales. This is especially true of confused, disgruntled people, who dream to show their talents in the field of entrepreneurship. Comes to the fact that all of the accumulated funds go to “jars”, and the old man, wanting to prove his strength to the young, on his pension become a mountain of unnecessary things. They forget that they only earn points and discounts on future purchases.
Similar story: distribution of products of the company in the family, among neighbors in the stairwell and work colleagues. These sales say about the fear of the seller “cold contacts”. To earn with the 15% discount, you must implement at least 200-300 thousand rubles a month, and the family and friends of these volumes will not provide. Even buying all ruler of the goods of the company, having spent all his savings, become a “Golden” Director impossible.
From network marketing a cult
For almost 30 years MLM in Russia has seriously changed. If in the early 1990s, they were often similar to pseudo-religious, Polosukhinskaya, in zero business took outwardly respectable. In the current decade Director in the cities of Russia began to open small shops that in fact contradicts the ideology of networkers.
However, the environment is like a magnet that attracts strange people. Companies are still many conspiracy theorists, fans of mystery writer Paolo Coelho, psychotherapist Anatoly Kashpirovsky, Vladimir Megre with his “Ringing cedars” and “Anastasiadou”, dolmenoid, practitioners of various pagan rites and so on. Such people tend to sell little. But getting into the team, trying to convert people to their faith.
No help in the case of interest to the police
It is worth noting that often in MLM are engaged in the manufacturing of their products without the corresponding certificates of quality. This violates the legislation of the Russian Federation, but the company will not pay for consultant sell their “jars” or “weight loss smoothies” without permission. Similarly no support is expected in the case of interest on the part of tax authorities and claims to the product from consumers.
Best customer must be stupid
As a rule, in the line of products of the network companies always are the standard means of weight loss, different Supplements, cosmetic, jewelry, magic cards, attracting money, luck and love. All of this suggests that the ideal client for an MLM consider themselves poor, unhappy, overweight, bad experiences of construction relations. In addition, with the problems in education.
Trainers of success
Corporate culture is a network of companies claims that in the first place it is spiritual, not material values. This is great, like a noodle falls on the ears of many Russians, tired of life on the tough laws of the market. In fact, the “spiritual food” consists of dubious quality books on practical psychology and training. And the business is arranged by the most primitive scheme: buy cheaper — sell more expensive.
Almost “Holy Scriptures” are the books of Robert Kiyosaki “Rich dad, poor dad”, “Think and grow rich” by Napoleon hill, the literature of Vladimir Dovgan and other “success coaches”.
For the layman the various mass games networkers seem technologies “zombie”. In fact they are aimed at team-building. Much more of the time is training on the objections of clients. At these sessions specifically put the emphasis on the underdogs, suddenly made a brilliant career: the founder of Kentucky Fried Chicken (KFC), nicknamed Colonel Sanders, the founder and CEO of Apple Steve Jobs, the hero of kinoboeviki Sylvester Stallone, etc. Trainings strengthen the faith of the new starters in the correctness of their chosen path when hundreds of failures. According to statistics, successful sellers close 2-3 deals out of 10 “cold contacts”. But hundreds spoken throughout the day, “spells” like “I am the most beautiful (strong, healthy, rich) man in the world!” make simply working longer and harder.
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