JSC “Faberlic” (“Faberlik”) is a Russian Multi-Level Marketing company that produces cosmetics, textiles, accessories, footwear, and other things. It was established in 1997 and had been doing business under its current name since 2001.
FABERLIC modifies brand positioning to “FABERLIC, BE YOUR BEST” in 2020. Every day, the company strives to provide fresh sources of inspiration by developing unique, inventive goods, a variety of educational projects, and social activities. The fundamental principle of Faberlic is to offer a wide range of products at reasonable costs.
The company is using a Multi-Level Marketing business strategy. Before we go into deep, we should know about Multi-Level Marketing first.
WHAT IS MULTI-LEVEL MARKETING?
People in Multi-level Marketing (MLM) or network marketing sell products to the general public through word of mouth and direct sales.
The fundamental principle behind the MLM approach is to progressively promote the product to as many distributors as possible to build the sales force. As a result, the multi-level marketing compensation plan is designed so that commission is paid to persons at various levels when a single sale is completed, and payment is based on the overall amount of sales created.
We must know the company’s legitimacy before joining to ensure that we are in the right place, for we have to check some important points.
Find and examine the company’s track record to learn more about it. Perform an internet search using the company’s name and terms like review, scam, or complaint. Examine the first several pages of search results. It would be best if you also hunted for stories about the company in newspapers, periodicals, or the internet. Learn more about:
- How long has the company been in function, whether it has a good reputation for customer service
- What the internet is conveying about the firm and its product
- Whether or not the corporation has been fined for unfair business practices
- Check with your concerned government authority for complaints about any company you’re thinking about doing business with. Instead, a lack of complaints does not indicate that a company is legitimate.
HISTORY OF FABERLIC
Alexei Nechaev, the founder of the Faberlic firm, and Alexander Davankov, its first CEO, met in a pioneer camp, graduated from Moscow State University, and began doing business together.
In 1998, Nechaev and Davankov were granted a patent for the dermal application of perftoran (A blood substitute with the ability to transmit oxygen), an oxygen-carrying emulsion created in the Soviet Union widely utilized as artificial blood during the Afghan war.
The oxygen emulsion was the foundation for the partners’ entry into the cosmetics market under the Russkaya Liniya brand. In the middle of the 1998 economic crisis, global cosmetics producers cut supplies and slashed promotion, assisting Russian enterprises in the middle-lower and lower price segments, like Russian Line.
“Russian Line” was renamed “Faberlic” in 2001, which approximately translates as “the lord of the picture.” According to Nechaev, the change was necessary for entrepreneurs to access overseas markets with a previously unregistered trademark with an evocative name that did not suggest ties with Russia.
BUSINESS STRATEGY OF FABERLIC
Faberlic has become one of the world’s leading MLM and oxygen cosmetics businesses. It operates through a network of freelance sales consultants as a Direct Sales International Association member. Faberlic is currently represented in twenty-four countries throughout the world. According to reports, over one million affiliates effectively market Faberlic cosmetics to millions of customers worldwide.
The following ways will help as a network marker in Faberlic.
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THE PRODUCTS ON SALE WITH THE OFFERS
The Faberlic line of skincare products has a variety of active chemicals as well as a unique oxygen complex. Haircare and body products, ammonia-free hair colorants, perfume and make-up, and various seasonal accessories are also available. Faberlic operates its clinical research facility, where continuing experiments are conducted to improve the quality of its goods.
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SIGNING UP
Anyone above fourteen can become a consultant for Faberlic, which is quick and straightforward on their website. Put your name, phone number, and address information into the online form to start immediately. You can acquire the company’s products for cost after signing up.
The products can then be sold to the general public at catalog prices with a 50% markup. The 50% markup indicates your profit on each sale.
There are no monthly boundaries on the number of things you can buy or sell. There is also the opportunity to make money through the “Structural Work” advertising strategy. Once you’ve registered, the company will send you more information.
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CHOOSING WHETHER OR NOT THIS IS FOR YOU
To effectively promote Faberlic products, you must be able to communicate factual details to potential clients in a simple, jargon-free manner. You will also require basic sales abilities because the Faberlic brand is not as well-known as other brands such as Oriflame or Avon. As a result, the goods will not sell themselves. Thus you must be proactive.
HOW TO MAKE MONEY FROM FABERLIC?
At the beginning of your journey in the company, your income consists of two components:
- You save the family budget by purchasing everything you need for your home, beauty, and health at great discounts.
- You offer products to your clients (friends, acquaintances, colleagues) and receive immediate profit – the difference between the price of the catalog and the price of the Consultant.
Further, you can expand the possibilities of your earnings by starting to invite into the business everyone who is just as interested in additional income as you are. As your business team grows, you will receive other discounts and bonuses provided in our growth plan. Faberlic’s business strategy assumes that your success is marked by new statuses or qualifications (from Director to General Partner of the company).
As your status grows, so does your income. By achieving new qualifications, you get the opportunity to fulfill all your dreams! To become a Consultant, you do not need to receive additional education, work experience, or business knowledge. At every stage, you meet the support of a Mentor (the person who invited you to the business) and a company that offers you training materials, seminars, and motivating trips.
PRODUCTS OF FABERLIC
Cosmetics, perfumes, home chemicals, household goods, food, children’s goods, clothes, shoes and accessories, underwear and tights, and pet products are all manufactured by the company.
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COSMETICS AND CLEANING PRODUCTS.
Faberlic cosmetics are manufactured on Nikopolskaya Street in the Biryulyovo Zapadnoye area of Moscow’s Southern Administrative District. The company has had its own Research and Development Center since 2002. The enterprise’s production, office, and warehousing premises covered 45 thousand m2 in 2017. According to 2020 data, the corporation operates its own cosmetics production, which produces more than 150 million pieces of cosmetic items per year.
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ACCESSORIES AND CLOTHING PRODUCTS.
Faberlic releases collaborations with well-known Russian designers. Alena Akhmadullina developed three capsule collections for Faberlic in 2016. In early 2017, the brand debuted a collection of clothing, accessories, and perfumes in conjunction with fashion designer Valentin Yudashkin. Stylist Alexander Rogov unveiled the partnership with Faberlic during Fashion Week in Moscow in October 2017. In addition, in 2017, the firm launched Faberlic Creative Bureau, its incubator for fashion designers, in the Art play creative space in St. Petersburg.
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FAST MOVING CONSUMER GOODS PRODUCTS
Faberlic, in collaboration with the investment firm Global Venture Alliance, launched the corporate business accelerator Faberlic FMCG Accelerator in May 2016. Faberlic chose five promising projects from a pool of 250 applicants in 2016.
IS FABERLIC A SCAM?
Faberlic goods are available in the United States and internationally. It’s typical to believe that all MLMs are a fraud, and all you need to know is how they work. These MLM companies are so profitable because representatives perform all of the labor, and most of the money goes to people higher up the food chain and the company.
PROS
- You are not forced to purchase or retain any goods on hand.
- No previous background is required to join, and you do not need unique sales talents. The only condition is that you be at least 16 years old.
- You can Exit anytime. If you decide to quit, put in a request to have your ID removed from the database.
CONS
- A disappointing commission which is three percentage
- Any fees incurred while conducting business are not refundable.
- To generate any money, you must recruit others to join your team. As a result, you will receive little money from their sales.
FABERLIC COMPENSATION PLAN
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PERSONAL DISCOUNT
Learn how to make money from personal sales as your first step. It’s easy: show the catalog to your contacts and take their orders. You can profit from the difference between consultant and catalog prices by up to 26%. The first kind of Faberlic Consultant income is this.
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GROUP SALES COMMISSION
The next step is to acquire the skills necessary to approach potential teammates and pique their interest in your project. You will soon start receiving commissions for your individual and group sales volume, and the Performance Commission is the second source of income.
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DIRECTOR BONUS
The third step is to learn how to spot potential Personal Group members and support them in their leadership abilities. Prepare the next generation of leaders to spot newcomers and pique their interest in our company. Encourage team leaders to generate personal revenue so your organization can grow; the larger your team, the higher your potential sales and income. The third type of income is also available to you after some time: The director bonus is based on the 23 percent branches in your downline.
CONCLUSION
I believe Faberlic is one of the most popular MLM companies in this world. Many people want to work from home and have a flexible schedule. But, for it to function, you must have a viable source of income. Selling products from MLM firms will almost certainly cost you more money than you make, and that is how the business model operates.
