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Spring. Also in the conference room of the Zurich 25 Hours Hotel: On the bar tables, dozens of pastel-colored flasks are arranged in a simple design. "Of course" are the products, their "vegan" content, the "pure" ingredients, the "real" effect – as the promise of the men and women who smile behind it. Fist – sized buttons with ringana slogans on their shirts stand out: "So fresh", "So free". The fifteen or so visitors paid ten francs for this product presentation, with meetings several times a month throughout Switzerland.
For half an hour, a product distributor rents his business by calling it "Ringana Family". The extra income was "effortless", especially for mothers. Then she was ecstatic in front of the founder of the company, Andreas Wilfinger, whose father was already a biopionist. Her message is supported by the "testimonials" of three business partners, also called "new partners": When she thinks of Ringana, she is recovering from the "same warm feeling" that she encounters when she names her children said a woman.
The business model used by Ringana became known through the 1950s Tupperware parties, but then disappeared from public perception. In multi-level marketing, MLM runs, companies do not distribute their products in store shelves, but have advertised them by independent business partners through word of mouth. In the case of Ringana – a company based in Austria – it is mainly women, about 20 000 people. 2000 of them come from Switzerland. These trading partners sell the products directly to their friends and acquaintances. Their financial compensation is – unlike traditional direct sales – not only dependent on the products sold, but also the amount of income that members recruited by them can generate. Or, to put it another way: the more dental oil gives the knowledge gained, the higher their commission. Sales by trading partners are calculated according to a complex key: if own sales and those of recruited employees exceed a certain amount, the trading partner increases to a next target level, which in turn promises more commission.
On the edge of legality
Once, storage containers, vacuum cleaners and insurance were transported door-to-door, today they are creams and food supplements. They are offered by companies such as Forever Living, Herbalife, Mary Kay, Amway or Ringana. Not for everyone's enjoyment: Critics consider it problematic, if lay people distribute products, which can have a long-term influence on health.
Nevertheless, business is booming: the World Association of Direct Marketing Companies Approximately 156,000 people are part of such a network, generating in 2016 319 million Swiss francs in this country. Financially, the distribution model also seems interesting for Ringana: according to his own statements, the company achieved a turnover of 60 million euros in 2017, an increase of 50% compared to the previous year. 39, previous year
. The transition to snowball or pyramid systems, which are illegal under the Unfair Competition Act, is fluid. For illegal sales systems, it is significant that distributors perceive the benefit primarily by attracting more people than in the distribution of goods or services per se. A distinction is often difficult for foreigners. For example, the State Secretariat for Economic Affairs (Seco) regularly receives inquiries and complaints about these companies. In the case of Ringana up to now, two complaints have been received: In both the fear is expressed that the company operates an illegal pyramid scheme. However, Seco has no power of decision for this matter. Ringo herself has not been contacted by Seco according to her own information. For society the presumption of innocence applies.
"My mentor has always said that there is no compulsion to sell the products, but the pressure is there." Celine Müller
A l 39 25-hour hotel in Zurich, the words of the teacher are: "Which of you is delighted with Ringana?" She calls into the room, "Who thinks Ringana has a good business model?", "Who wants to earn money?" Money with Ringana? "Anyone wishing to take advantage of discounts on products can sign an on-site partnership agreement -" non-binding ", as they say.A visitor hastily leaves the room, the others are engaged in conversations from vendors without buttons, in which they continue to ravage about Ringana: "I immediately fell in love with the products and ethics behind," says a woman, before leaving twenty minutes long talked about the " super great "Ringana vegan creams." In terms of business, she does not speak e also that of "his family."
Annual Big Events
The scene shows that many MLM networks have in common the promise of a quick extra income: relying on an ambience group with their business partners. Ringana deliberately plays with being a lot more than just a business partner. Just as if the company was trying to compensate for the uncertainty of its trading partners in relation to their own success with emotions. How they succeed, for example, show the Youtube clips of Ringana's annual events on a large scale; the so-called "conventions", "summits of summer" or "coup de l'envoi". Some participants pay several hundred euros for their visit. Journalists are not allowed: it's about internal events, they say. Likewise, any other company does not allow the media for such internal meetings. In January's annual "coup de send" video, thousands of distribution partners flock to the lobby of Austria's largest convention center, the Austria Center. They talk about "goosebumps" and the timing of their "Ringana decision". Later, confetti succeeds to the spectacle of light, moans of music and, under the tears, a "new partner" receives a trophy to enter the highest level of the commission. If you do not know what's going on, you could easily mistake the opportunity for worshiping a church without a hip.
"Sectarianism is interpreted in our society," says Daniela Schmidt, Sales Manager of Ringana. Of course, from time to time, you celebrate and enjoy success, "as in any good company too". "From the outside, it may seem odd: there are people who appreciate and express their happiness at work." Where is this thing? "Schmidt laughs, then compares the" team dynamic. " Ringana "with that of sporting events: Sports fans, such as football fans, are also proud of their favorites and were happy with their success." This is not the same as a sect ", says Schmidt
" High Potential of Ideology "
But this exuberant joy in Ringana's products can also be unpleasant: Valentina Meyer calls it" boring ". In reality, Meyer's name is different – his fear of new insults is too great. Meyer co-administers a Facebook group for vegans with several thousand members. They talk about their experiences with vegan products in the virtual space. But many times, Meyer and his colleagues were forced to adjust the band's rules because Ringana's partners were not behaving properly. Under each question, under each comment, hard working "cool partners" would have typed how better Ringana would be compared to competing products, says Meyer. In addition, more and more members of the group reported how Ringana's partners in private information praised their products. When Meyer and his colleagues banned product advertising from tiered marketing companies, distributors showed their negative side: Meyer and his colleagues were verbally abused in personal messages and in the forum.
Economist Claudia Gross of Raboud University in Holland wrote her dissertation on multi-level marketing. It is not surprising that a natural cosmetics manufacturer such as Ringana mixes its economic model and its wellness factors. "He advertises products that have strong ideological potential," says Gross. If natural cosmetics promise a healthier life and beauty from the inside, then these are religious aspects that would allow some sort of meaning. This ideological content allows customers and business partners to feel connected to the product through their vision of the world. "This product ideology can help you claim a multiple of the price of another cream for Ringana creams," says Gross. Another benefit for MLM companies is that customers are less concerned about whether their investment is worth it.
In the beginning, even Celine Müller, who does not want to give her real name, is convinced of Ringana's message. She works part-time from 2015 as a business partner of the company. She attends paid workshops, phoning friends, but at the end of the month, it's often not enough to be placed in a target level with a large commission. In good times, she can earn about 300 euros of monthly salary. It is also necessary until Müller understands how she can earn money as a trading partner.
Opaque Command Keys
Today, Müller's insecurity is great; she intends to go out. "Once the company has convinced me with its promise to be 100% ethical. Today, I doubt this statement," she said. "Over the years, I have invested thousands of francs in the purchase of products."
The 2015 internal training materials show just how opaque and complex the commission key is for distributors: Ringana knows ten "target levels", The more customers spend, the higher the target level is and therefore the commission for trading partners. From the third stage, promotion is only possible if new distribution partners are won. The highest level is reached by those who, in addition to customers who purchase products for more than 780 euros, can also boast of having business partners in a third stream of revenue that generate sales of $ 50,000. about 72,000 euros a month. The list shows: no quick money dreams come true here.
For scientist Claudia Gross, it is typical that in multi-level marketing companies, potential revenues are obscured. "There are often exorbitant promises of high incomes, but there is no way to check them out," she says. On company websites, no information can be found, and distribution partners you learn little, they pursue their own interests. "So there is no way to get independent information," Gross says. In addition, some companies would charge additional services that a potential distributor would not be aware of at the outset. For example, spend on product training: "In some multi-level marketing companies, top-level distributors appear to be taking greater advantage of these events and selling training materials to other members than the products themselves. the same "
. At the end of the month
When Céline Müller realizes that little money is flowing into her account, she is investing more and more of her time in her main work and continues to promote Ringana products. Not for the pleasure of all: his "Ringana mentor" reacts with anger. It was she who approached Müller and convinced of the products. It is also she who receives a commission when Müller solicits clients and trains them again. "My mentor has always said that there was no compulsion to sell the products, but the pressure is there," says Müller
. posting online the earnings of their recruited employees.Little time before the end of the month, Muller's mentor reports via SMS: she barely misses the commission.Maybe she needs a new cream after all.It has a pot of gold in her hands that she should use, writes the mentor.Or more demanding: it would be a pity if her team worked, but Müller did not hire Sufficient new customers to take advantage Mueller usually reinvests against 200 euros to increase his clients' expenses – to no avail When Müller wants to make a product purchased due to financial difficulties, the situation worsens: do not invest their strength in people who are not happy and enthusiastic, writes the mentor, interrupt the contact and forbid Müller to contact them. They still do not understand the reaction.
A Swiss "new partner" says that she sends an SMS to her team partners shortly before the billing deadline. She was not alone at the request of Ringanas, but had come to speak to the sales manager of Austria and did not want to reveal her name – according to her own statement, so as not to gain an advantage over the other trading partners. She sees her role as a mentor to help the team partners who wish. "Newcomers often do not know how the system works, it's there that I want to give them security and support," says the consultant, who is on target at age 9. SMS are not a pressure, on the contrary: As a mentor, she often offers her partners a kind of school life and helps in various fields.They are grateful for this service that is not imposed on them.The way of selling the products and directing a team, the consultant learned in various trainings.The costs according to the site of the company: About 170 euros for two days
"The law must be active." Claudia Gross, Economist
Questions to Director Andreas Wilfinger are answered by the company's lawyer after nine days: Ringana had been confronted in the past with tendentious reports, in which direction the article was personally, Mr. Wilfinger e should speak only at the company's headquarters in Styria during a product tour. A week later, Wilfinger protects his company in writing: "The concept of sales was created out of necessity," he writes. Thus, the shelf life of the products is "strongly limited" by the "fresh ingredients".
When they were launched in 1996, retailers had no opportunity to sell their products in the retail business and online sales did not exist yet. Especially the new partners are "too ambitious" in their enthusiasm for the company. "No company can guarantee that its employees or business partners always behave properly," writes Wilfinger. However, dubious sales tactics have harmed the company in the long run, which is why the personal interview of the people concerned has been sought and if necessary the withdrawal would be suggested
for the company. expert Claudia Gross: "The legislator must act". black sheep could be eliminated, companies would be required to publish their success stories and average incomes. "For a long time, direct selling was only a marginal phenomenon.For example, there is no regulatory authority that examines and records the company's commission rules, for example," Gross explains. This would likely cause a stir in the industry, but it can improve the image of direct sales for the better, she believes.
(Tages-Anzeiger)
Created: 27.07.2018, 21:19
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