Network Marketing in Russia

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Network marketing in Russia appeared relatively recently and the first companies appeared in a rather difficult time for the country. Now, MLM has become part of the modern economic system and is one of the ways of doing business. Attracting with its simplicity and advantages, the number of representatives of this sales principle is growing every year.

By the way, it is worth clarifying the concept of network marketing:

Network marketing (multi-level marketing, MLM) is a principle of direct bc data sales of goods and services, which is based on the creation of a network of distributors. Each independent partner, in addition to selling products, can attract people with similar rights. The income of the structure participants consists of commissions for sales volume and additional bonuses for the productivity of personally invited people.

History of MLM development in Russia
One of the first examples of the direct sales principle was the American vitamin company Nutrilite Products, founded in 1934. Initially, the company attracted distributors who consumed its product personally and advised their relatives and friends to buy it. At the same time, they provided additional income in the form of $ 50 per month, which was a significant income for that time. In 1943, the company scaled up and implemented the first full-fledged marketing plan, with depth on several levels of referrals.