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From the editorial office of "Private Entrepreneur"  In the 20th issue of "Private Entrepreneur," we published several business ideas sent in by entrepreneurs and suggested exchanging such ideas, as well as sharing work experience. Today, our reader shares the secrets of their business - the peculiarities of working in network marketing.  I want to talk about the opportunity to earn extra income or start your own business. Opportunities to live better and achieve your dreams. First, a littl

Work in a network company. Features

History of a person who decided to leave a simple employee in a traditional business and work for themselves in network marketing.

From the editorial office of "Private Entrepreneur" 
 
In the 20th issue of "Private Entrepreneur," we published several business ideas sent in by entrepreneurs and suggested exchanging such ideas, as well as sharing work experience. Today, our reader shares the secrets of their business - the peculiarities of working in network marketing. 
 
I want to talk about the opportunity to earn extra income or start your own business. Opportunities to live better and achieve your dreams. 
First, a little about myself. My name is Victor, a native Ukrainian, currently living near Kyiv. My biography is quite ordinary: studied, got married, worked. By education, I am a computer systems engineer, worked as a system administrator, software engineer, and was involved in internet projects. 
The work was not too hard and did not take up much time. The pay was accordingly modest. However, there was an opportunity for self-education. The obligation to sit at work for 8 hours daily was very oppressive. I wanted more money, more freedom. 
 

I Want My Own Business

The idea of starting my own business has been with me for a long time. But I knew entrepreneurs and saw how much money, effort, and time it takes to start a business. So, I formulated requirements for the business I wanted to engage in and set out to find it.

 

And the requirements were as follows: 
 
- the business brings in sufficient income for me and my family; 
- it does not take up much time; 
- it is not routine, the business helps constantly learn something new, meet interesting people, provides opportunities for personal and spiritual growth; 
- I do not want to use hired labor; 
- the business brings real benefits to people and makes the world a better place; 
- it does not pollute the environment and does not deplete natural resources. 
 

Decision Making 
 

Although the requirements were formulated, I could not find the right occupation. I got tired of exchanging my time for money - I quit my job. And what a situation! Only enough money for three months in my pocket, a few raw ideas in my head. And the next day, my wife and I were told about this business... 
 
Although at first we didn't see any business here. We were simply interested in the products offered by the company. We had long been looking for safe laundry detergents and cleaning products that are safe for health and the environment. Besides, we have a small child, and we didn't want to poison him with the chemicals that fill the shelves of our stores. Naturally, we were interested when we were offered quality and health-safe products. The quality guarantee was also appealing. Within three months, we could return the goods and get all our money back. 
 
So, we bought this product, and we liked it. Then I decided to delve deeper into this business. I carefully studied their offer, found additional information on the Internet, met people who had already succeeded in this field. And I understood: this is what I was looking for. There were no bosses and subordinates here. No need to do boring accounting, have warehouses, stores, spend huge amounts of money on advertising. Starting such a business did not require large capital investments. I also saw an opportunity to help people and solve our environmental problems in this. So, the decision is made: I am engaged in this business. 
 

 

 

Simple and Complex 
 

At first glance, this business seems very simple. You register with the company as a regular customer and get the opportunity to buy products at a significant discount. Then you tell your friends and acquaintances about the products and the company. You might ask, what's so amazing about this? People always share their impressions of interesting purchases. But they do it for free. And the company pays for it - that's the trick. Your acquaintances register with this company and also start buying products for themselves at a discount. And for each product they buy, the company gives you a small percentage. 
 

Did you know that.. 
 

Today network marketing is present in more than 160 countries around the world, with over 5,000 companies operating in this system. It is projected that by 2015, the number of MLM companies worldwide will grow to 30,000. 
 
Every month, over 100,000 people join network marketing, with an annual growth rate of the global industry turnover ranging from 20% to 30%. Its growth rates are on par with those of the telecommunications, software, and pharmaceutical industries. 
 
Furthermore, the company will pay you for the purchases made by people recommended this product by your acquaintances and their acquaintances. Where will the money come from? It's simple - the cost of advertising is already included in the price of the products. However, the company does not provide advertising - you advertise this product. And you get rewarded for it. 
 
How much money can you earn this way? It depends on the number of people you introduce to buying this product, as well as how long you engage in this business. In the Ukrainian market, this company has been operating for only three years, but already hundreds of people collaborating with it earn over $1,000 a month. 
 
For such simple work - and so much money? Many will suspect something is amiss. 
 
Here it is! This is why this business is not as simple as it seems at first. It involves working with people, each person having their own character, experience, and misconceptions. 
 
In our time, many believe that the only honest way to earn money is by standing 8 hours at a machine in a factory. They are so accustomed, it is their experience. They do not realize that circumstances have changed. They do not realize until they face layoffs. After all, today everything changes and evolves at a cosmic speed. And if we do not learn and develop ourselves to keep up with the times, we will simply perish, like mammoths. 
 

 

New Age Marketing or Soviet Pyramids 
 For any manufacturer, promoting their product to the market is a very serious matter. Everyone solves it differently: some advertise, some sell products to wholesalers, some create a brand, some open a chain of retail stores. But one of the most effective and promising methods of promoting a product today is the method of multi-level or network marketing.

 
Network or multi-level marketing (MLM, MultiLevel Marketing) is a system of promoting goods or services directly from the manufacturer to the consumer by the method of "from person to person", bypassing the chain of intermediary companies. The method itself is not new. It was used in tax collection in Ancient Egypt, by Genghis Khan in forming the horde, by exchange offices in the Middle Ages in Europe, by Japanese schools of fine arts. But the network marketing industry developed in the mid-20th century. 
In our country, the term "network marketing" is often associated with so-called "pyramids", which in the 90s of the last century sprouted in the territory of the former union like mushrooms - and disappeared just as quickly. At one time, I also had such an association because, working at the computer, I received letters and came across websites offering the opportunity to make money on the Internet without leaving home. After analyzing a couple of such offers, I realized that these people were "selling air". Such companies only profit from the entrance fees of new members. Later, I changed my opinion about network marketing, or rather, learned to separate the wheat from the chaff.

 


<h3>How to distinguish such companies from financial pyramids?</h3>

- First, carefully consider what the company is selling. It should be genuinely needed products, goods, or even information for people. If they only teach how to attract new people, it's a pyramid scheme.- Secondly, the company must be registered, operate officially in the market, and pay taxes.

- Thirdly, carefully study the company's marketing plan. Understand how and for what you will be paid, how much you can realistically earn. It is also useful to find out how long the company has been in the market, who its founders are, whether it provides any guarantees for its products or services, and whether refunds are possible. Familiarize yourself with the terms of cooperation with this company, try to get to know better the people who invited you to this business.

 

More information on the difference between financial scams and network projects can be found in the article <a href="/en/blog/view/index/post/55">Network Marketing vs Pyramids</a>

 

What are the goals and values of these people and the company, do they align with your goals and values? Only then make a decision.