Multilevel Marketing (MLM), also referred to as Network Marketing or Direct Selling, is a type of retail that companies use to sell their products or services. This type of retail proves to be effective and preferred by companies over any other business model.
Network Marketing in India has evolved. It is today touted as the future of business in the 21st century. Companies can increase their profits by selling their products directly to the consumers without any mediators in between. This article finds out what the future holds for Network Marketing in India.
Benefits of Network Marketing
Network Marketing is a business model involving a multilevel network of interconnected individuals. The network of salespeople generate money via direct sales or adding new member affiliations.
The Network Marketing companies use salespeople who are not directly on their payrolls. The salespeople, known as Direct Sellers or Distributors or Network marketers, earn attractive commissions.
Further, the Direct Sellers are incentivized to recruit new salespeople in the company’s sales network under them – popularly called the downline. The Distributors also earn a residual income. You may like MLM or not, but you cannot ignore its benefits.
The Direct Selling business offers flexibility. You can choose to work part-time or full-time and from the comfort of your home. And you own a business without investing big. Network Marketing is a great way to earn a passive income.
Anyone can join a Direct Selling business. You do not need any experience nor any hi-fi qualification! All you need is a passion for meeting new people and making friends. There is minimal risk involved in Network Marketing when compared to starting any other business. And you also do not have to worry about creating an inventory space or ship your sales. It is all taken care of by the MLM company with whom you collaborate.
Network Marketing Trends Picking Up in India
Network Marketing has become extremely popular in the United States and many European countries. Network Marketing has been slow to establish its identity among the Indians. However, the onset of the deadly Covid-19 pandemic has brought the MLM industry into the limelight in India.
All along, people in India were pretty negative regarding the idea of Network Marketing. And it was mainly due to the bad name the industry earned due to a few companies. These fraudulent companies duped innocent investors using the pyramid business scheme.
Times have changed. The economic and unemployment crisis induced by the pandemic rendered many people jobless. When most industries struggled to sustain their operations, the Network Marketing industry not only stood out but provided livelihoods to millions.
Foreseeing the Future of Network Marketing in India
Multilevel Marketing has been around actively in India for more than two decades now. However, it has shot into the limelight during the recent economic downfall induced by the pandemic. Today more people are getting attracted and opting in for Direct Selling.
Network Marketing allows you to be independent. Many people are getting attracted to Multilevel Marketing in their quest to attain financial freedom and become entrepreneurs.
Once you have ensured the quality of goods or services offered by company offers and ensured that it is not a scam, your Multilevel Marketing business is likely to grow ahead. Let us find out why the future of Network Marketing in India is bright.
Government Boost to the Industry
The Direct Selling companies contributed significantly to the government revenues even during difficult pandemic times. The Direct Selling companies also provided self-employment to millions who lost their livelihoods.
The Indian government took steps to revive the receding economy via several initiatives like Make in India, Vocal for Local, Startup India, Skill India, and Women Empowerment. It was instrumental in boosting the Direct Selling Industry further. The Direct Selling aligned nicely with the government’s vision of a self-reliant India by providing self-employment opportunities to millions.
The government has taken steps to safeguard the interests of budding entrepreneurs considering starting their Direct Selling business. It has drafted regulations that make it mandatory for all Direct Selling companies to register with a governing body. Further, the government has rendered all companies incorporating the pyramid business model illegal.
All the above makes it a win-win situation for the Direct Selling companies and those partnering with them as Distributors.
Technological Advancements and Internet Affordability Enabling MLM Companies to Prosper
Network Marketing has traditionally been a business model involving person-to-person or door-to-door sales by independent Sales Representatives. It requires you to build a network of salespeople who assist you in lead generation and sales closures.
However, giant strides have led to advancements in technology. It is today possible to connect with people using your laptops or computers or even your smartphones. It has enabled consumers to place purchase orders online and even get them delivered right at their doorsteps.
The affordability of the Internet has compelled Network Marketing companies to go online. They have increased their e-commerce activities. The easy availability of the Internet has enabled independent Distributors to implement effective digital marketing strategies.
You do not have to any more waste time travelling door-to-door to meet your prospects and customers. That’s a thing of the past. Online methods like videoconferencing, telemarketing and direct messaging make it possible for you to connect with prospects and customers. You can now contact anyone from anywhere from the comfort of your home!
Tech-Savvy Consumers are Comfortable Buying Online
The advent of the Internet and the growing popularity of social media are seeing more people surfing online. Consumers today are more comfortable buying online than going to stores!
Consumers today can compare the features and price of the product they wish to buy before placing their order. And they find it even more convenient when their order is delivered at their doorsteps too!
Network Marketing companies have leveraged online ways, but the increase in the number of tech-savvy consumers is why they have seen their sales and revenues go up drastically.
Increase in Demand for Quality Products
The products and services sold by Multilevel Marketing companies are not available off the shelf in any departmental store or mall.
The products sold by reputed MLM companies are of the highest quality and sought after.
Products sold by Multilevel Marketing companies are obtained only by connecting with a Direct Seller or Distributor of the company. This situation has enabled companies and Distributors alike to grow their sales and gain. All are comfortable, and it is a win-win situation for companies, Distributors, and consumers.
People Crave for Financial Independence
We are living in a fast-transforming digital world that has given rise to transparency in everything that goes around us. Finding the existence and credibility of a company, comparing the prices and features of a product, or making a purchase online is all convenient and possible.
The educated consumers are on the increase. And many educated people are frustrated with their nine-to-five corporate jobs. Some look to earning a second income to take care of their lavish spending. Others look at ways in running a full-time business in their quest to become an entrepreneur.
Whether you are looking to earn an income by keeping your existing job or earning a livelihood, the Direct Selling business is a safe option that many are opting for. It has resulted in the popularity of Direct Selling going up.
The Future of Network Marketing in India is Bright
Many people in India lookout for a source of passive income and continuing with their jobs. And owning a business to become your own boss is a growing trend too. Venturing into Network Marketing can make both things happen. Also, starting a Network Marketing business involves negligible investment and operating costs.
In the modern virtual world where social media rules, running a Multilevel Marketing business can be profitable. It enables you to network and connects with people across the world right from where you are! If done rightly, the growth potential in a Network Marketing business is vast – you can earn more than what you imagine. Further, a stint in the Network Marketing business can develop and enhance your personality too.
Conclusion: Times ahead for Network Marketing in India are healthy and promising.
Network Marketing is appealing and attracting many in its fold. Network Marketing shows you the way to attain financial freedom and become an entrepreneur. There are no criteria to join a Network Marketing company. You can join a Network Marketing company regardless of your age, gender, experience, or qualification.
Network Marketing is in line with the government’s vision of Aatmanirbhar Bharat (Self-reliant India). And the Network Marketing industry contributes substantially to the government revenues.
The tech-savvy consumer is comfortable in making online purchases and also get them delivered conveniently at their doorstep.
The Direct Selling companies employ salespeople that are not on their payroll. It enables them to save on overhead costs. By creating a network of people to sell their products, the Direct Selling companies can spread their word through word-of-mouth. It enables them to save on high advertisement costs. Direct Selling companies benefit. Distributors become financially independent. Government gains. And Consumers are comfortable. When all are happy, it is all the reason for the Network Marketing to grow even further in the years to come. Network Marketing indeed has a good future going ahead.
