As an onlooker, the Direct Selling Industry, also known as Multilevel Marketing or Network Marketing Industry, looks lucrative and tempting. Yes, the industry is rewarding but, you need to guard yourself against being greedy. Joining a Network Marketing company is not a get-rich-quick scheme, and you should not expect returns overnight. Networking Marketing is just like any other business but much easier and affordable to start than any other. However, before taking a plunge into the Network Marketing Industry, you need to do your groundwork well to safeguard yourself from being taken on a ride. This write-up helps you take the preventive measures to have a smooth and successful Multilevel Marketing business journey.
Multilevel Marketing: The In-thing in Retail
If done the right way, Multilevel Marketing (MLM) is an alternative career option and an attractive business proposition. It involves distributing the company products directly to consumers without any intermediaries or retail stores in between. Another good thing about the Multilevel Marketing business is that you do not start from scratch – you get the complete support of a Direct Selling company that offers products, and you get training as well. You make your money by selling products and recruiting more multilevel marketing participants like you – they are referred to as your downline. Further, apart from earning money from your sales, you also earn a percentage of the commission from sales by your downline.
The Multilevel Industry around India for over two decades suddenly shot into prominence post the Covid-19 pandemic that induced an economic recession rendering many jobless. The Multilevel Marketing Industry provided livelihoods to millions and showed them how to attain financial freedom and entrepreneurship.
Government Initiatives – Boosting Industry & Safeguarding Investor Interests
The Government has boosted the Direct Selling Industry with its initiatives like Make in India, Women Empowerment, Skill India, and Startup India; it also took measures to protect the interests of the investors into the industry. Looking into matters concerning the Networking Marketing Industry became inevitable, which necessitated the constitution of an inter-ministerial committee and state representatives, which resulted in the formulation of guidelines for the industry. Further, a mechanism that supervises and monitors the compliance of guidelines by Direct Sellers and Direct Selling Entities was put in place. Recently the Government has drafted regulations that render companies incorporating the Pyramid scheme as part of their business strategy as illegal. Further, it has made it compulsory for these companies to register with a government body and a permanent office address in India.
How you can Safeguard Your Interests Personally
Now that there is much-needed support and encouragement from the Government for the Network Marketing Industry. Now that the Government has also stepped in to ensure that the interests of the investors in Network Marketing companies as Sales Representatives or Independent Representatives are protected, it is also your responsibility to choose your Network Marketing partner wisely. You need to do a thorough background check of the company by verifying its existence, at least five years. Then you need to know about its infrastructure and financial stability, its products, its services, and the MLM compensation plan it incorporates as part of its business strategy. Also, ensure that it meets all the government guidelines and that it is not a Pyramid scheme.
Once you are confident and comfortable selling its products or services and satisfied that its compensation plan meets your expectations, you should neither think twice nor look behind; you should move forward and take the plunge – a plunge that you are unlikely to regret. All the best.
