Multilevel Marketing (MLM) is a win-win option for both – the Multilevel Marketing company and those who partner with it as sales representatives. Multilevel Marketing, also referred to as Network Marketing or Referral Marketing or Direct Selling, allows companies to increase their reach and visibility without spending big on advertisements. The Multilevel Marketing business enables sales representatives to attain financial freedom and shows the path to become entrepreneurs. So, is Multilevel Marketing suitable for India? Does it have a future in India? Let us find out.
The Advent of Multilevel Marketing in India
Multilevel Marketing in India began in 1995, and the first company to start the trend was European major – Oriflame. Though India is home to a population of more than a billion people and employment a big worry, the growth of Multilevel Marketing in India has been slow initially and remained stagnant for quite some time. It was mainly due to the lack of clarity in law when many companies in the guise of implementing the MLM business model duped innocent investors by incorporating the pyramid scheme and vanished in no time.
Government Boost to the Direct Selling Industry
The onset of the deadly Covid-19 pandemic compounded by the economic recession gave rise to an employment crisis. When most industries struggled to sustain their growth and revenues, The Multilevel Marketing industry was the one that stood out. Sensing the agony of people confined to their homes due to the frequently enforced lockdowns by the Government to control the spread of the pandemic, the Direct Selling industry was quick to leverage the Internet by going online.
The Indian Government reeling under the economic and unemployment crisis, had no option but to devise ways to boost the industry. Initiatives like Make in India, Women Empowerment, Vocal for Local, Startup India, and Skill India boosted the industry, especially the Direct Selling industry. You should note that more than half of the salesforce employed in the Direct Selling industry comprises women. And, in line with the Government’s focus on Aatmanirbhar Bharat (Self-reliant India), the MLM companies provided livelihoods to millions who lost their jobs due to the pandemic-induced crisis and showed them how to attain financial independence and become entrepreneurs.
Regulation of Direct Selling Industry by GOI a Welcome Sign
The process of legalization of Multilevel Marketing in India is continually under process, and the Government of India have drafted regulations to protect the interest of investors. The Government has made it mandatory for Direct Selling companies to register with a governing body and have a permanent office address in India. Further, the Government has also rendered all companies’ illegal who incorporate the pyramid business model as part of their business strategy. It augurs well for the Direct Selling Industry and is likely to see more people flocking to join it.
Reason for Network Marketing Rising in India
All along, people in India are known to keep looking for ways to make money – conveniently and simply! And that’s exactly the major highlight of Network Marketing. The several initiatives to boost the Direct Selling industry and measures to safeguard those wanting to join the industry have changed the way people perceive the Multilevel Marketing business today. It is set to climb bigger heights.
Multilevel Marketing is a win-win option for the company as well the ones who join it. Companies do not have to spend big on advertisements. Companies are relieved of the headache of recruiting their salesforce by implementing the people-to-people contact networking route aided by online ways.
People who join an MLM company can work full-time or part-time and during convenient hours from the comforts of their homes. They are relieved of the hassles of a nine-to-five job and earn handsomely in the form of commissions on their sales and rewarded with incentives for recruiting further salespeople under them – known as a downline. Earning a residual income on the sales made by their downline is like the icing on the cake.
The MLM industry is set for success in India going ahead. It is estimated to be INR 159 billion by the end of 2021 and set to reach INR 645 billion by 2025. Certainly, these figures point to phenomenal Network Marketing growth in India. Multilevel Marketing is here to stay and grow – it has a brighter future in India.
Multilevel Marketing – The Future of Industry in the 21st Century!
Joining a Network Marketing company to own your business involves negligible capital. Worldwide, the MLM business has produced several millionaires. And India is set to follow in the years ahead. Direct Selling is today another addition to the list of the already existing career options. With the receding global economy still reeling under the onslaught of the Covid-19 pandemic, Multilevel Marketing will play an important role in the growth of the economy in the country. The budding youth of India are thinking differently, and out-of-the-box is keen to step in to become future entrepreneurs. Many have begun their journey with Network Marketing and more to follow them.
