Definition Of Network Marketing

Network Marketing or Multilevel marketing ( MLM ) is a business strategy where you build a network of people to sell products or services of a company. As your network of people grows your commissions also increases simultaneously.

Concept Of MLM or Network Marketing

The Direct selling business or MLM operates between two groups:

  1. A brand/product company (ex. Amway, Oriflame, ModiCare…)
  2. A distributor or individual growing network to promote the products of that Brand/company.

Network Marketing or Direct selling business is a WIN-WIN situation for both the BRAND (whose products are sold) and the INDIVIDUAL (who is marketing the products). The company or brand whose products are sold gets revenue from the product sold, and the person marketing the product gets a commission for each product.

In this business, as your network grows your commissions also increase. So in Network Marketing or MLM, the focus of a new recruit should be to use the products and then decide if the product is worth distributions or not. To grow in Network Marketing Business you should first have belief and faith in your companies products. If you don’t believe in the product why should anyone else do?

In Conclusion, Network marketing or MLM is a good opportunity to earn money part-time or full time by networking with people and explaining to them all the features of both BUSINESS and PRODUCTS.

Is Network Marketing or MLM legal in India?

Network Marketing or MLM is 100% legal in India.

There are many terms used for network marketing like Multilevel Marketing(MLM), Referral marketing, Direct Selling, Pyramid Selling, and Chain Marketing. Due to the recent scams and frauds in India like Shardha Group Financial scandal, people judge this business in India and have a negative impression about the business. About 99% of people in India don’t have proper knowledge about the MLM business. The negative reviews are mostly from people who have NOT done this business or have heard of someone being unsuccessful.

There are companies/brands doing this business just for money. They take joining fees, registration fees, etc. Well, those are all frauds and scandals.

DON’T join any direct selling or MLM business which requires you to pay anything in any form. That’s just another TRAP.

Here is the best picture comparison of legal and illegal Network Marketing or MLM.

The left side shows how legal Network Marketing Companies operate.

The right side shows how illegal Network Marketing or MLM companies set a TRAP.

Guidelines for Network Marketing from Government of India

The Government of India has made a list of illegal network marketing companies in India in order to protect the people from fraud and illegal schemes of Network marketing in India.

These Network Marketing frauds and schemes are illegal in India under the:

  1. Prize Chits & Money Circulation Schemes (Banning) Act 1978
  2. Direct Selling Guidelines 2016.

For more details, list of illegal companies by the Government of India and guidelines: Click

In Conclusion, Network marketing or MLM is legal in India. Most companies or firms are government-approved and certified, but there are few illegal organizations using it to make money from the innocent public. So before joining any Network Marketing or MLM industry, do some research, check reviews on sites, and then decide. Don’t just do it because your friends or family are doing and earning profits.

Growth of Network Marketing In India

With a huge population of 1.3 million people in India, the revenue generation of Network Marketing in India as of 2020 is ₹130 billion.

The growth of Network Marketing or MLM in India is exponentially increasing over the past 10 years. Due to the scams and frauds, in the early 2010s, the business wasn’t able to increase at an even higher rate.

The global pandemic of COVID-19 and the economical crisis in the world in 2020 has NOT hugely impacted the growth of the network marketing business as this business doesn’t always require physical presence. Till now, the growth is not exceptional but the scope for Network Marketing in India in the coming 5 years is huge.

Scope of Network Marketing

Amongst industries like Music, Movie, NFL, Organic Products, and Video Gaming. Network Marketing business is predicted to be the “Best business to Earn money and invest in 2020”.

It is predicted by Forbes International Magazine and network marketing experts or gurus that in the next 5 years Network Marketing or MLM Business in India will be going through a BOOM. Many investors around the world are investing in India for network marketing.

From 2020 to 2025, India will generate 6 times more revenue. It is the Golden time to invest in Network Marketing or MLM in India.

Future Of Network Marketing In India

In 2021, the estimated revenue generation from Network Marketing in India will be ₹159.3 billion.

In 2025, the estimated revenue generation from Network Marketing in India will be ₹645 billion.

In Conclusion, if you are aiming to earn money through Network Marketing in India, this is the “Golden period”. Do proper research about the company and products before joining any MLM business.

The scope and prospects of Network Marketing in the near future are bright. With the huge population, India is set to become one of the top distributors in Network Marketing or MLM business in the next 5 years.