What is Network Marketing, what is MLM, Business Models

Network Marketing, also known as Multi-Level Marketing (MLM), is a business model in which independent representatives sell a company's products or services directly to consumers

These reps are typically paid not only for their sales, but also for the sales of the people they recruit to join the company as reps. This creates a "network" of representatives who work together to sell the products or services and build the business.

Benefits

One of the major benefits of Network Marketing is that it allows people to start their own businesses with relatively low start-up costs. This can be especially appealing to those who want to be their own boss, set their own schedule, and have the potential to earn a significant income.

Initial difficulties

However, Network Marketing is not without its challenges. One of the biggest challenges is building a successful team of representatives. This can be difficult because the representatives are not company employees but rather independent contractors. As a result, they must be motivated to work hard and be successful on their own.

Another challenge is that many people see Network Marketing as a scam or pyramid scheme. This is because there have been some instances of illegal or unethical practices in the industry. It is important to thoroughly research any Network Marketing opportunity before getting involved to ensure it is legitimate and complies with all laws and regulations.

Success strategies

Effective marketing strategies to promote the business and products are also important. This may include online marketing, social media, networking events and personal contacts. It is also essential to provide training and support to team members.

To be successful in Network Marketing, it is important to have a clear understanding of the products or services being sold and to be able to communicate its value to potential customers. It is also important to have a strong work ethic, be organized and motivated and be able to build and manage a team.

Network Marketing Ranking

The best way to judge the companies that have best applied the Network marketing business model, is that of the turnover, growth rate and size of the network.

You can see an accurate worldwide list of the top 100 companies, updated to 2021 and compiled by epixels.

Among the first are:

• Amway: The Greatest MLM Company of All Time! It has dominated the network marketing industry for the past fifteen years. Along with its sister company, Alticor, Amway is the only MLM company to have the largest number of business partnerships and affiliate companies. Its sales force of one million operates in more than 100 countries around the world;
• Herbalife: Among the oldest in the industry, Herbalife has earned an iconic position in the network marketing industry. Despite being embroiled in global trade disputes, the MLM company remains unbeatable with its sales of nutritional products. He earned a net worth of $250 million in 1996, becoming the pioneering success in the network marketing industry;
• Mary Kay: In 1963, a woman named Mary Kay Ash started her own cosmetics company. Ash wanted to give women the opportunity to be successful on their own. Ash's idea to sell her products through networking and house parties was an instant success, and nearly 60 years later, Mary Kay is a multimillion-dollar business operating in more than 40 countries around the world. Numerous projects have been undertaken in the area sustainability environmental and equal opportunities;
• Vorwerk: in recent years it has recorded a growth between 5% and 10%. Vorwerk's highly diversified product range includes household appliances, home care and cosmetics. The Vorwerk Group operates in 75 countries around the world. Its divisions include Lux Asia Pacific, Kobold and Thermomix appliances, Jafra Cosmetics and akf group financial services.
• Avon: Operates on the MLM front with over 6,4 million sales reps. Thanks to its aggressive marketing strategies, it is the second fastest direct selling company in the world, after Amway, in terms of sales growth.

Ercole Palmeri