Network marketing or multilevel marketing is a method of chain marketing which has its roots all over the world. During in its early phases, there was so much negativity surrounded to it. People were very skeptical about the company agents and even to get into it.
The main reason for this is some fraud marketing companies using Ponzi scheme and allured people into it and make them incurred loss. But with the advent of information technology, people were able to choose wise and select a best company to start their network marketing. At first it is mainly house wives, but the picture rapidly changed, and many started to choose it as their full-time career.
Let’s dig deep into the possible scope of network marketing in India.
Legality of MLM in India
It is legal to operate network marketing in India. the problem comes the way you operate. There must only be direct selling from the members to the buyer. They should not charge more than what stated in the MRP. Members must not charge money for membership more than what stated in the company guidelines. Some of the companies even offer a free membership.
Carefully observe if the company is involved in illegal money scheme where their main concentration is on collecting money but not in selling the product.
Most of the famous network marketing companies are successful in achieving good amount of membership and sales. There is a good scope in these companies to grow in career.
To be frank network marketing works well in Asian countries like India as we have a closed community where we treat even the strangers as our relatives. It is easy for us to form relations and being referred by our friends.
Though there are no noted problems from Indian government to allow people to be involved in network marketing business, there is always an open door for the legislation to plunge into action when they sense something fishy.
It is always advisable to make a reasonable search online on fraud companies before you decide joining with them. There is no support from government of India for individual money schemes run by the companies in the name of multi-level marketing. So, if we lose our money investing in such schemes, then the probability will be that it is hard to recover what we lost.
Amway, Tupperware and Modicare are few of the most famous network marketing companies in India. members in these groups have seen a growth in their career. But it also depends on individual skills of marketing.
Most of the chain marketing companies are private ltd and not supervised by Indian government, there are very few companies such as Modicare who has Indian origin.
Hence the scope of network marketing in India has no legal issues unless otherwise it concentrates more in collecting money.
It is a viable option to choose as a source of income and by following your ethical code of conduct along with company laid guidelines, to have a substantial growth as a member of MLM companies.