Each year, the number of Kazakhstani entrepreneurs choosing network marketing to run their businesses increases. This is not surprising, as promoting products through a constantly growing distributor network allows for quickly attracting numerous loyal customers, boosting sales, and successfully scaling the business.
If you are considering starting your own business in Kazakhstan or entering a new market, then this article is for you.
Trends in network marketing in Kazakhstan
Network marketing in Kazakhstan is the most developed and fastest-growing market in the region. According to WFDSA research, sales volumes in this sector increased by 28% in 2022, and this figure continues to rise dynamically.
Kazakhstani distributors prefer tangible physical products. According to the Kazakhstan Direct Selling Association, the most popular niches in the country's MLM industry are health products, accounting for 26% of all sales, cosmetics - 24%, and perfumes - 16%.
The sustainable development of the direct sales market in Kazakhstan is currently supported by several key factors:
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Economic conditions
The relatively high level of inflation in the country prompts people to seek additional sources of income. Moreover, since the beginning of 2022, over 3 million immigrants have entered Kazakhstan, many of whom are still looking for work. All of this stimulates the active recruitment of distributors by network companies, which offer flexible and unlimited earning opportunities.
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Specifics of the mentality
Kazakh society is characterized by strong family and social ties, where people are accustomed to trusting the recommendations of relatives, friends, and acquaintances. Personal connections and recommendations form the basis for building a strong distributor structure and network sales, making the MLM business thrive in Kazakhstan.
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Rapid development of e-commerce
According to The Tenge research, in 2023, sales volumes through online stores, marketplaces, and social networks in Kazakhstan increased by 79%, reaching $5.06 million. This growth was driven by the increasing number of internet users, developed technological infrastructure, and government support for the digital economy. These trends stimulate the prosperity of network marketing in Kazakhstan. Online platforms and digital channels allow for reaching a wider audience, significantly simplifying the recruitment of new distributors and the sale of MLM company products.
Legislative regulation of MLM business in Kazakhstan
Network marketing in Kazakhstan is a legal business model that is clearly regulated by legislation. The country has adopted the "Rules for Retail Trade Outside Trade Locations through Network Marketing." These rules define MLM as a form of trade where independent partners promote products either independently or through recruiting other sales agents. They earn income in the form of commissions from personal sales and the sales of participants they recruit into the network structure.
Since 2010, the Direct Selling Association of Kazakhstan (DSAK) has been active. The founders of the association have developed a code of professional ethics that regulates the relationships between customers, distributors, and MLM projects in Kazakhstan. Membership in the DSAK increases a company's credibility, as it confirms compliance with the highest standards of product quality and consumer rights protection.
After analyzing the legislative norms regarding network marketing (direct sales) in Kazakhstan, we identified several key rules:
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MLM businesses must be officially registered in Kazakhstan and obtain the appropriate license.
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Written contracts must be made between the company and its distributors, clearly outlining the rights and obligations of both parties.
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The company must provide complete and accurate information about its products, their prices, cooperation terms, and return policies.
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The marketing plan must include a transparent structure of commissions, bonuses, and clear conditions for their receipt.
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MLM companies are obligated to adhere to ethical business practices, avoiding deception and manipulation when recruiting distributors.
Additionally, it is important to remember that approximately 74% of the population in Kazakhstan are Muslims, and Islam plays a significant role in the country's culture. Therefore, to make your MLM company's products and business opportunities attractive to a wide range of potential clients and partners, they must comply with Islamic norms and laws.
For information on how to create a halal MLM company, read our article Network Marketing Through the Prism of Islam.
Top MLM companies in Kazakhstan
The MLM market in Kazakhstan features over 150 companies, including globally renowned MLM giants like Avon, Herbalife, Forever Living, Coway, and others. There are also local direct selling projects demonstrating successful growth:
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Global Trend
Company website - globaltrendcompany.com
Year of launch - 2018
The company creates and sells exclusive health products based on the "Pavlov Spring" concentrate. In 2018, the FlawlessMLM team optimized Global Trend's marketing plan and developed a software suite that automated all key business processes. Global Trend is growing at an impressive rate, having been named company of the year in Kazakhstan twice. Currently, the company has over 2 million partners and thousands of satisfied clients in 10 countries worldwide.
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G-time
Company website - gtime.kz
Year of launch - 2012
MLM corporation G-time develops skincare cosmetics based on the natural mineral Shungite, known for its rare healing properties. G-time successfully sells its cosmetic products in over 80 countries. In 2019, the company expanded its business by opening a large business center, a travel agency called G-TIME TRAVEL, and an automobile showroom named G-TIME CORPORATION in Almaty.
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Alhadaya
Company website - alhadaya.kz
Year of launch - 2022
The company specializes in producing natural halal dietary supplements and other beauty and health products. The FlawlessMLM team created a comprehensive platform for the launch and further scaling of Alhadaya, but the project entered our ranking due to its achievements. Alhadaya has received over 500,000 positive reviews from customers worldwide, obtained the necessary permits for its products in 12 countries, and attracted over 13,000 active distributors.
Thus, Kazakhstan is a promising direction both for MLM companies looking to scale in Central Asia and for launching new projects. However, for a successful MLM business launch, a good idea and a high-demand product are not enough. It is necessary to deeply understand the specifics of network marketing and all the aforementioned features of the MLM market, create a competent marketing plan, and reliable software to manage all your business processes. Therefore, it is better to entrust the creation of an MLM company to contractors with extensive practical experience in this field.
Our team at FlawlessMLM has been creating unique IT solutions, attractive marketing plans, and providing support at all stages of MLM project launches for our clients in Kazakhstan, the United Arab Emirates, Turkey, and many other countries for 20 years. Contact our experts for a consultation to get answers to all your questions.
