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What is Multi Level Marketing in India?

 It’s been rightly put by Robert Kiyosaki “If you want to be rich, think BIG, think DIFFERENTLY”. Various MLM organizations have adopted this mantra and are spreading their network at a fast pace. In our daily lives, we normally come across different advertisements stating “Build your network with us” or “Start earning the money you deserve” and many more like this. This is called MLM business strategy. Before we move further, we must understand what MLM is all about.

Multi-level Marketing or MLM is a form of direct marketing in which an organization commissions their recruits on selling their products and encourages them to make more members under them, thus creating a complete chain. This whole network is created through word of mouth, relationship favors, friends, families, and referrals.

Initially, MLM in India was started by Hindustan Unilever Ltd. But later switched to retail sales. Bigger organizations like Oriflame, Avon cosmetics, Modicare, etc. are working on the MLM model and are making huge profits.




Below mentioned are some MLM benefits:

  • One has the flexibility to do marketing along with his existing job. There is no requirement for a full-time employee in MLM marketing.
  • The person gets an extra source of income and that too works at his comfort level.
  • An MLM professional doesn’t need to keep stock of the products. Once he gets an order, then accordingly he can process it further.
  • One more interesting thing is that a person is not bonded to only a single company or its product. He can market the products of other companies as well.
  • The investment to start this business is very low or even negligible. You just need to have good contacts.
  • In MLM marketing, an affiliate can earn through his contact network. As the network increases, income increases.
  • Once the network increases, the efforts and efficiency get distributed.
  • MLM companies have already designed their strategy and marketing plan, on which an affiliate needs to work. So, again they get rid of making efforts in designing a business plan or any marketing strategy.

But, as we always say, there are two sides to a coin. Though the MLM business model offers great opportunities to grow, it also has some disadvantages. So, one must do thorough research related to MLM marketing before digging their feet into it.

MLM disadvantages

  • As this model is purely based on network marketing, sometimes a person can’t convince his contact to join him.
  • This system doesn’t offer long time benefits. After a certain period, they reach a saturation level and will only receive marginal profits.
  • Sometimes, the quality of the product fails to impress buyers.
  • In case the chain is not created, an affiliate may suffer huge losses as they are supposed to buy some products to continue their membership. It may lead to huge expenses and the whole burden would be on one person.
  • Lastly, certain companies use this model to cheat people and take money from them, thus leading to increased financial scams.

Read More: MLM in India

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