Many people try their hands at Direct Selling as if it is some lucky draw! Direct Selling, also known as Network Marketing or Multilevel Marketing (MLM) or Referral Marketing, is not a get-rich-quick scheme but a business you own – just like any other business. The success of your Direct Selling business depends entirely on the dedicated efforts that you put in. However, there are a few things that you need to consider before stepping into the Multilevel Marketing world by collaborating with a Direct Selling company. This article discusses some of the points you need to consider before joining a Direct Selling company.
Who Can Join the Direct Selling Business?
Joining a Direct Selling business does not require you to have any prior work experience, nor there are any criteria or need to have a specific qualification. Anyone, regardless of their gender or age, passionate about sales, interested in meeting new people, and making friends are the ideal fit for doing the business.
Why Direct Selling Business was Slow to Take Off in India?
Multilevel Marketing has been around in India for more than two decades, but it has only picked up over the last few years. Earlier, people were skeptical about joining the business mainly due to the corrupt practices indulged by few companies that operated in the guise of MLM companies – they incorporated the illegal pyramid business model, duped innocent investors, and vanished in no time.
Direct Selling Business – A Safe Bet
Times have changed, more so, especially after the onset of the Covid-19 pandemic. The Direct Selling industry that stood out provided livelihoods to millions who lost their jobs due to the induced economic crisis. Today, focusing on Aatmanirbhar Bharat (Self-reliant India), the Government has boosted the industry with initiatives like Make in India, Women Empowerment, Vocal for Local, and Startup India. Further, the Government has recently drafted regulations to safeguard the interests of those joining the Direct Selling sector.
The Government has declared companies that incorporate the pyramid business model as illegal. It has also made it mandatory for companies to register with a governing body by giving a permanent address in India. Direct Sellers, also known as Independent Representatives or Sales Representatives, earn lucrative commissions and incentives from the sales they make and the salespeople they recruit, along with the option to earn a residual income. All this indeed makes the Direct Selling sector a safe bet to join. However, you need to be cautious and choose after making an informed decision. Let us find out the things you should beware of before partnering with a Direct Selling company.
The Company Product or Service
Knowing what the company has to offer is the first thing you need to know. You need to know about the product or the service that the company sells. It would help if you were comfortable and confident when selling it. If not, you should look for a direct sales company that sells something you are more at ease with. You should choose a company that sells something unique and innovative that is not readily available off the shelf.
The Start-up Cost
Joining a Direct Selling business usually involves a low start-up cost, and the fee you need to pay is to cover the company’s sales kit cost. Apart from that, you may need to spend on business cards, stationery, some infrastructure, office equipment, business phone, appropriate clothes, samples, etc. However, it is quite easy to own a direct selling business compared to any other home-based business. But you need to be careful and beware if a company you intend to join asks for training costs or unexplained fees. It could be a scam. Ideally speaking, the start-up costs should not go beyond the initial sales kit.
The Business Model
After being satisfied with the company’s products and ascertaining the joining fee, you need to verify the business model that the company incorporates as part of its business strategy. Companies that implement the pyramid business should be ignored straight away. Such companies are also declared illegal by the Government of India.
Other things You Should Note Before Joining an MLM Company
You should thoroughly check that the company has been in existence for more than five years at least. Also, if it pay its representatives timely as per the plan. It would help if you verified that the company complies with all the rules and regulations of the Government.
Multilevel Marketing is appealing to many, and the reason for them to join it. It is a lucrative business that promises big. But it requires smart and hard work. However, it is also important for you to choose the right company when stepping into the Network Marketing world. It ensures the strong training and support required to drive your business to greater heights. Noting the points discussed above can help you to partner with the right company. Best of luck.
