Network 21 and MLM business

In this material I want to assess the Network 21 training system, as well as separate the MLM companies themselves from the training systems. Surprisingly, there is a confusion of concepts in the minds of networkers all the time. Of course, my assessment will not in any way affect the sustainability of Network 21, as this is the opinion of one person. The truth of a person who has seen a lot from the inside and understands something in life.

I foresee some objections. However, as a rule, networkers argue ardently, or rather, those who consider themselves already networkers after attending a couple of motivating seminars. I just want to ask: «Guys, have you seen anything else besides a motivating sponsor?» The task of the sponsor is to motivate, otherwise he simply will not work. Therefore, he can say many things that are not true.

Example. You, of course, have heard that in every MLM company (or almost every one) there is a person or even several who are Nobel Prize winners. How many MLM companies — so many laureates. At first I thought, since the sponsor said, then this is how it is. But when I first looked at the Nobel Committee’s dossier and did not find the name I needed, I was very surprised and began to listen and double-check all the facts. And it turned out that a lot of information has not been verified, but is given solely in the calculation that they will not guess to check, because they believe absolutely all sorts of nonsense.

Network 21

So, the ratio of the training system Network 21 and the Amway company itself. A thousand times at all seminars, speakers talk about two wings: the company itself and the training system, which make up a whole for a specific ABO. However, each time, someone again and again connects these concepts together and addresses the company’s questions to the training system and vice versa.

So, the Amway company itself produces products, the list of which is in the catalog. Amway products are what you need to sell. In this case, I am not going to do product analysis. Amway is a privately held company and does business. Whether it is bad or good is it not for me to judge, but analysts of the company itself can judge by the reports. The company is in business and that’s it. Amway products, in fact, like any manufacturer’s company in the world, are divided into very popular and associated, i.e. at the request of citizens. We know that the line of cleaning products is in great demand. Especially all funds based on the very first product (it goes under number 0001 in the catalog) to all the well-known Loka.

Excellent wipes LOC (Amway)

A good product? Undoubtedly good and high quality. But only when our home-grown sellers spread it on bread, and use it as shampoo again and again … Even company representatives understand that the product is being discredited in its purest form. There is another example. Shaving blades. Well, they didn’t stand next to the vest. I shave and cry — when will these blades run out, for I bought a whole mountain of them. But in order to achieve points, it is necessary to buy a lot of products every month, including low-quality ones. Well, I don’t want to shave with low-quality blades. But I have nowhere to go, since I scored a lock, a disdrops for a year in advance, and I have to score points! This is the source of negativity towards the company.

Network 21 and MLM business
Working together on project. Two young business colleagues working on computer

This is what Amway is about. But MLM business does not end with this company. There are over 5 thousand MLM companies in the world today. There are companies that are more loyal to customers, there are more rigid ones than Amway. I do not undertake to do an analysis, because I do not fully understand the situation. In the same way, I will not talk about training systems in other companies, but I will only talk about Network 21, since I saw a lot (not all) from the inside.

Building Amway

Let me remind you that every MLM company (correct) is interested in big sales. For sales to be great, sellers (ABOs, distributors) must sell well. And to improve the quality of sales, companies (mind you, the companies themselves) conduct sales and product trainings. And what does the Network 21 training system do then, well, or any other, because Amway has other training systems and other MLM companies have their own training systems.

So, the Network 21 training system and similar ones train ABOs (distributors in other MLM companies) to build a network (in pleasant terminology — teams) of consumers. Since we are building a team, the slogan arose: “We don’t sell — they buy from us”. And where then goes to the product that must be sold to receive a reward according to the marketing plan? That’s right — the members of the same team buy it. And for them to buy, motivational seminars are held. And since many in these motivating seminars do not perceive motivating emanations, the eyes of unsuccessful sellers are bulging (we also do not sell), since the income is less and less.

This is where a new negativity arises. And sales are falling. As the competition has increased and new quality detergents and cleaning products enter the market. Moreover, at a price that is much lower than the price of Amway products. Many do not consider the cost of these products.

Example. Since I had a registrationI am in the Amway East European market, I had the right to buy products in the Hungarian market. It is no secret that the legs of Amway’s business in Russia grew out of Hungary and many Russian sponsors are registered in the market that they continue to support and develop. So, receiving products from Hungary (it was necessary to make a separate turnover there as well), I was always surprised that with the costs of shipping and paying for a person there, the products were still cheaper than on the Russian market (oh, they fool our brother !!! ).

The next point is the annual renewal of registration. The cost, by the way, is 800 rubles. And it doesn’t matter at all whether you are doing business or not. You are not called a buyer, but an Amway Independent Business Owner (ABO). Why not divide it into buyers and ABOs? No-no! It is necessary to collect contributions for … Imagine that all over Russia there are 100 thousand legal entities and, having collected 800 rubles of contributions each (this is money not backed by products) … But in fact, the number of legal entities in Russia is much more than 100 thousand my stay in 2007 was 360 thousand). Well, in general, it’s understandable, right? This money should be included in the cost of the product.

What about the costs of Network 21? Where is this to be attributed? What about personal growth? May be. But this personal growth is directly related to building a network of buyers (or a team, but whatever one may say, buyers, otherwise why such a team member who does not buy?). By the way, there is a nuance that many ABOs are not aware of due to their simplicity. Let’s say a certain NPA has become a diamond. In the next financial year, he is obliged to confirm this title with the corresponding turnover. And if not confirmed? Well, well, his reward has decreased. Will wait for next year. And he is no longer a diamond within the company.

How is this drop in level reflected in Network 21? But in no way! Once a person was able to reach this level, it means that he has the right to teach others. How is this expressed? In banknotes, but what else? I remember that after holding another weekend seminar, our great diamond comes out at a weekly meeting and announces that, firstly, for some years now he has lived only from Amway, and, secondly, they just bought a plot of land for future home. Where did the money come from? And the seminar was rotten. There were none of the visiting talkers. But more on that in a separate article.

And one more nuance. Network 21 hosts annual executive retreats (as they loudly call ABOs at levels 21 and above), typically in Turkey. Not to be confused with trips organized by Amway for Platinum and higher. These trips are fully paid by the company, as we can guess from those same 800 rubles of contract extension.

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