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mlm law india

Present scenario of MLM in India

By Randhir Kumar | Published on 11/02/2014

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Network Marketing/Direct sales/Multi Level Marketing or in short MLM is a good way to build a powerful business for any ordinary person. In fact it is a sustainable business model. While it’s probably the most underrated business model in India. Though it has proven, its worth outside. There are many reasons, why it is not growing properly in India.

One of the biggest reason is that there is no clear law in India on mlm companies and on top of that there is no particular regulatory body for mlm.

The people of developed nations are more open to investing in MLM/Direct Sales is because of strict laws but the current scenario of India appears different.

The explanation behind non-acceptance of Network marketing (MLM) into the main steam in India is because of investment scams emerging all over India, and that too mostly on the name of mlm. These scam companies end up swindle hard-earned money from people.

Mostly these people are uneducated and they belong to lower middle class.

The fact why network marketing industry is not growing properly in India, is due to the lack of clarity on the law. Scamsters are setting up phony agencies to make massive sum of money in short period of time.

According to the census, around 27% (284,008,819) population is below 45 years age, out of 1,028,610,328 and around 14,200,441 are unemployed and if the Indian government set up a regulatory body to keep an eye on the mlm and ponzi schemes, then it will surely help to remove unemployment.

Strict regulation on network marketing business is need of the hour, if this happens then it will pull up a variety of people those who wish to make more than a few streams of income.

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