MLM News

Author: Ak Sharma

  • Kerala police to tighten laws on MLM Firms

    Kerala police to tighten laws on MLM Firms

    The police has decided to enforce strictly the guidelines issued by the state government imposing strict restrictions on mlm and direct selling entities. Apart from making registration mandatory for them, the guidelines issued in 2015 September imposes a ban on money chain model activities and giving incentives for canvassing persons as direct selling agents. But money chain model business continued in various parts of the state as the regulations remained on paper.

    It was in the wake this the state police chief Loknath Behera issued a circular to all police officials directing that the guidelines should be strictly enforced and take action against violators. According to the guidelines issued by the taxes department, mlm or direct selling entities should not create chains of customers which would be like a pyramid or money chain business.

    The maximum retail price of products should be visibly displayed, and clients should be offered warranty and option to return goods in case of manufacturing defects. A grievance redressal mechanism to address complaints within seven days should also be set up. It imposes restrictions on operating any money circulation or money chit schemes. Those involved in multi-level marketing or direct selling activities should undergo training on the do’s and don’ts at a government approved institution like the Gulati Institute of Finance and Taxation in Thiruvananthapuram, it says.

    MLM or direct selling entities should take registration under Kerala General Sales Tax, Kerala Value Added Tax and Income Tax Act and the nature of business should be clearly stated in partnership deed or articles of association. The firm should also maintain a website providing all relevant information. Those violating the guidelines would be held liable under provisions of laws like the Prize Chits and Money Circulation Schemes (Banning) Act of 1978, Indian Penal Code or Consumer Protection Act.

    Source: deccanchronicle

  • How to make money online in India

    How to make money online in India

    All of us know one or more friend who is making money online. This makes us think that it is easy to make money online.  Also, some of us have tried our hand to make money online but have been trapped in on the online scam and have failed.

    This is often because we don’t know where to look at or where to start from. Or it is also because we don’t know a shortcut to make a lot of money.  But there are no shortcuts to making money. You have to work hard.

    There are many scams running when it comes to making money online. There is no way of making easy and fast money. Legitimate ways of money will need time and sincere efforts.

    Below are few ways to make money online. But before you read any further, we would like to assure you that these ways are not easy neither are they become rich overnight kind of a thing. So if you are looking for such a thing, you can stop reading right here. If you are willing to work hard to earn money online then the ways mentioned will definitely help you make money.

    Design app or website

    The new trend for making money online is creating apps or websites which have useful features.

    If you are a designer or a developer who can design websites or have a knack for developing app then you can make a good amount of money. You can work from home and earn from the comfort of your house.

    It is one of the trusted ways of making money online with a small investment. There are many web developers and designers who have made this as their business and are earning handsome amount.

    For example, Lucknow based Ankit Srivastava created a music app called La Musique in July 2014. This had downloaded more than 30 lakh music and made Rs.45 lakh.  You can read more on how he did this in yourstory.

    Freelance writing

    One of the most popular ways of making money online is freelance writing. But as we said in the beginning of this article, it is not as easy as it sounds. To become a freelance writer online there are few things you will need to understand.  First, it will need your time and dedication. Secondly, you have to know and understand what internet writing requires. Most of us have good English. But good English is not all will help you succeed in this field. If you choose to become a freelance writer for blogs and create internet contents then you have to know a thing or two about readability. You can check out the article on readability to understand what it means.

    If you plan to make freelancing as you long-term career it is best that you create your profile online. Having a web presence will definite help in your freelancing career.  You can explore options like the Freelancer.in which was earlier known was GetaFreelancer. The website offers more than 100 different types of jobs for freelancers. IT, writing, programming, design and so much more.  Freelancer can help you find the right client for your talent. You can also check some other interesting sites like Elance, WorkNHire, Upwork,People per Hour etc. clients

     Review music for money

    Another interesting way to earn money online is by becoming a reviewer for music. Slicethepie pays anyone who reviews unsigned bands and artist online. Now if you have the ears for music and love to listen to new talents this is an amazing way to make money.

    The income might not be a huge amount but you should definitely give it a try if it’s something that you enjoy. The payout is in $US and you will need to have PayPal account to receive the payment.

    There is also an option of referring your friends and earning commission on their reviews!

    Start Blogging

    One of the best ways to work from home and make money is blogging. There are many people who have tried it and are doing very well.

    But you must remember that it is not an easy thing to be a blogger.  Many bloggers earn a huge income. However, they reach that level only after a lot of hard work and genuine efforts.

    One of the best examples of a successful blog in India is ShoutMeloud. Its income for June was $29,659 as declared in the article ShoutMeLoud June month Income report .

    There are ways how you can monetize your blog.Mentioned below are few ways to monetize your blog:

    Advertisement:

    The oldest method of making money is the advertisement. Google Adsense is one of the most popular and renowned. This is also trusted the most by people.

    Paid Post:

    These are generally posts or advertisements for which the blog owner gets paid. It is purely between the blog owner and the person or company who wants to post the in the blog. The company pays the blog owner the amount to post the article about their brand or product in the blog.

    Banner Ads:

    The banner ads are advertisements that you can display on your blog. You can create space in your blog for banner ads. Company and individual businessman can advertise their products in the space and you can earn from it.

    Products:

    Another way to earn money from your blog is to create your own products and promote it in your blog.

    Affiliate Marketing

    Affiliate marketing is one of the best sources of earning money online. Many bloggers, marketers earn their living through the affiliate marketing.

    The banner ads are advertisements that you can display on your blog. You can create space in your blog for banner ads. Company and individual businessman can advertise their products in the space and you can earn from it.

    There are many affiliated marketplaces available in India. Some of them are Amazon associates, Flipkart, eBay.

    Become a “YouTuber” and get Paid

    YouTube is the largest sites people use to see all sorts of videos. If shooting videos on any occasion is your passion then there is a big scope for you to earn money from YouTube.  All you need to so is upload your videos on YouTube and become a YouTube partner.

    Seller on Fiverr

    You can become a seller on Fiverr and earn money online. It is a place where you can do several services for $5. All you have to do is register in Fiverr.com and create your gigs to tell people what all you can do for $5.

    If people like your gigs they will order your services. If you can complete only one gig a day you can still make a handsome sum of money in a month.

    Buy and sell domain names

    Another way of making money online is by buying and selling domain names. A domain name means the website address (eg. Networkingeye.com). There are lots of extension like .net ,.co.uk etc.

    They cost as little as Rs.600-700 in sites like Godaddy. However, a premium domain can cost a lot more. For example, in 2007 a domain named Vacationrentals.com was sold for a whopping amount of $35 million!

    Of course, ever domain name might not be as lucky and might not fetch you such a huge amount. However, with a little research and consistency, you will get much get the hang of the kind of domain name to invest on.

    Sedo is one place where you can sell or auction your domains. It is one of the world’s leading platform for domain buyers and sellers. It also provides other facilities like domain parking, domain buying. They also assist you in selling your domain with the help f their professional Domain Brokers. They will do all the work like contacting potential buyers, negotiating the price, and then secure payment and ensuring a seamless Domain Transfer.

    There are other sites as well where you can sell your domain like the Resellerclub. Namesilo  also provides services and tools that can help you manage, promote and sell your domain. It helps you report upon your domain acquisitions and sales for domains within their account or with any other registrar. The best part is all this is completely free.

    Online surveys

    One popular way to make money online is also online surveys. This is simple and you can complete the survey in your spare time. All it requires is few minutes to fill some survey forms. The surveys usually ask you to answer few questions and test new products.  However, be sure not to get caught up with scams involved with paid survey.

    Indiapanel is one website where you can register and start earning money.  You can also get exclusive invitations to free advanced screenings or free movie tickets for watching movies on the first day of the movie. They pay anything between Rs.200 to Rs. 5000 just for completing a questionnaire.

    Opinionworld is also another website that pays for taking surveys. They reward you with  points for taking their online surveys.You can redeem the points from their range of  popular brand vouchers, including flipkart.com, Cbazaar.in and Jabong. Once you register with Opinionworld  you will the surveys for money in your registered email id or you can login and take surveys from your account.

    Online market trading

    The stock market is also a way to make money online. If you understand the stock market and its trend then maybe its time you invest some time and money on it.  Contrary to the general belief you actually do not require a lot of money to start. You can do it all by yourself with the help of few online market trading platforms.

    But it is also important to keep in mind that stock market is highly speculative .You must have ample amount of patience. Also, it is always advisable to use your idle saving for investment instead of borrowing funds. Above all “never put all your eggs in one basket”. For less risk, it is good to distribute your investment in multiple sectors.

  • Government issues model guidelines for states to curb Ponzi schemes

    Government issues model guidelines for states to curb Ponzi schemes

    The government of India on Monday has issued a series of guidelines for states to regulate the direct selling sector. This implies that the Rs. 10,000 Cr industry could come under the strict Consumer Protection Act, 1986.

    Many steps have been taken in an attempt to safeguard the interest of individuals involved in this industry. The guideline clearly prohibits the use of pyramid structure and money circulation scheme.

    In the year 2014 William Pinckney, managing director & chief executive officer (CEO) for Amway was wrongly arrested under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.This arrest had put a question mark on the legitimacy of the direct selling industry operating in India. For a long time, direct selling companies operating in India has been the soft target and unfairly identified as the fraudsters. With these new guidelines, it is hoped that the industry will see a direction and clear rules that differentiate them from Ponzi and pyramids schemes.

    Ministry of Consumers Affairs, Food & Public Distribution Department of Consumer Affairs has issued an official Memorandum on September 09, 2016. Model guidelines on direct selling have been formulated on deliberation of the Inter-Ministerial Committee and consultation with the stakeholders. The State Governments and UT’s will take necessary action to implement the same. The State Government will have to set up a mechanism to monitor and supervise the activities of Direct Selling industry.

    The memorandum also states that all direct selling entity conducting direct selling activities will have to submit an undertaking to the Department of Consumer Affairs that it is in compliance with the guidelines issued and also provide details of its incorporation within 90 days.

    The Food & Consumer Affairs Minister Ram Vilas Paswan has released the Direct Selling Guidelines 2016 framework. The states and Union Territories will adopt the model guidelines as per their requirements

    These guidelines will help regulate the Direct Selling and Multi Level Marketing. It also aims at strengthening the existing regulatory mechanism on Direct Selling and MLM and preventing fraud and protecting the interest of consumers.

    For easy understanding and execution, the memorandum has defined various terms:

    • Direct Seller refers to as a person authorized by the Direct Selling Entity to engage in the Direct Selling business.
    • Direct Selling means marketing, distribution and sales of goods. It also means providing services as a part of the network of Direct Selling other than under a pyramid scheme.
    • Network of Direct Selling means a network of direct sellers at different levels of distribution. They may recruit or introduce or sponsor further levels of direct sellers who they then support. It can also include any system of distribution or marketing to undertake direct selling business. It can also include the multi-level marketing method of distribution.
    • Direct Selling Entity in the memorandum implies an entity which sells or offers to goods and services through its direct sellers to the consumers.
    • Consumers are individuals who buy the goods and services for their personal use. The goods and services brought should not be for a resale purpose. It has the same meaning as mentioned under the Consumer Protection Act 1986.
    • Goods include all kinds of movable property. It excludes any actionable claims and money as defined in Sale of Goods Act 1930 and section 3(26) of the General Clauses Act, 1897. Services refer to services as defined in the Consumer Protection Act 1986.
    • Cooling off period refers to the time frame within which the direct seller may reject the agreement. Within this time frame, the direct seller will not be subject to any penalty for breach of contract.
    • Sales Incentive means a share of profit payable to the Direct Seller for effecting sale of goods/products. This profit sharing has to be pre-stipulated in the contract between the Direct Seller and the Direct Selling Entity.
    • Pyramid schemes or money circulation schemes have the same meaning as defined under Prize Chits and Money Circulation Schemes (Banning) Act, 1978. A ‘pyramid-scheme’ as per the guideline “ is a multi-layered network of subscribers to a scheme formed by subscribers enrolling one or more subscribers in order to receive any benefit, directly or indirectly as a result of enrolment, action or performance of additional subscribers to the scheme. The subscriber enrolling further subscribers occupy a higher position and the enrolled subscribers lower position, thus, with successive enrollments, they form a multi-layered network of subscribers”.

    Condition for setting up Direct selling Business

    As per the guidelines, all direct selling entities need to follow the below condition. They will get 90 days from publication of the notification in the Gazette to be compliant.

    • The Direct Selling Entity should be a registered legal entity under the law of India. This means that the entity should have sales tax/Vat, Income Tax, TDS and other licenses.
    • Provide mandatory orientation sessions to all prospective direct sellers. The orientation should cover all aspects of direct selling operation including the payout system.
    • The direct selling entity should provide a full refund or buy back guarantee to ever direct seller.
    • Notify the cooling –off period for returning the  goods and services purchased by the direct sellers.
    • The promoters or key management should not have any history of criminal offense punishable under the law in the last 5 years.
    • The Direct Selling entity should have an official website. The website should have the names and Identification numbers of their authorized Direct Sellers.
    • The website should provide space for registering consumer complaints hassle free.
    • The Direct Selling Entity should have a consumer grievance cell to ensure redressal of consumer grievances.

    Obligation of Direct Sellers

    • Direct sellers should carry their ID cards and visit the customers with prior appointment
    • Provide the following information to the prospective consumer at the time of sale:
    • Name , address , registration number, identity proof and the telephone number of the direct seller and the entity
    • Description of the goods and services they sell
    • The return policy of the company for refund
    • Information about the complaint redressal mechanism of the company

      Prohibition

    • Payment of incentive not related to their respective sales volume.
    • Supplying or distribution of goods which are inferior.
    • Supply of goods which have exceeded its validity period as per the manufacturer.
    • Direct Selling Entity and the Direct Seller will not indulge in money circulation scheme. They will also not indulge in any act barred by the Prize Chits and Money Circulation Scheme (Banning) Act, I978.

     Information Readiness

    Every Direct Selling Entity must maintain an information file containing below-mentioned documents:

    • Certificate issued by Registrar of Companies, MOA and MOM.
    • Copies of TIN DIN of Directors, TAN, and PAN.
    • Sales Tax Certificate, Service Tax Certificate, CST Registrations.
    • Details of all Sales Tax Returns filed with the authorities.
    • Details Service Tax Returns filed with the authorities.
    • Copies of IT Returns of the company filed with the authorities.
    • TDS Statements of Distributors and respective challans paid.

    Appointment of monitoring authority for Direct Selling

    The details of monitoring authority for Direct Selling Industry is also mentioned :

    • The Department of Consumer Affairs will be the Nodal department at the Union level. The representative State Government will be responsible in the States.
    • The State Government will also set up the mechanism for supervising the activities of the direct selling entity.
    • All Direct selling entity will have to submit a compliance undertaking to the Department of Consumer Affairs. They will also have to provide details of its incorporation and other business details as notified from time to time.

    The new guideline issued by the ministry of consumer affairs is an important step towards safeguarding the interest of the consumer. It will also help to protect the direct selling industry and help differentiate between the fraudulent pyramid schemes. The new guidelines on the direct selling industry have given an operational and definitional clarity. However, an exhaustive legislation for direct selling would further strengthen the position of the industry.

     

  • Tester gets drunk, leaks secrets of new network marketing app MlmUP

    In August, a sales representative at a software testing company leaked client data intended for internal use only by posting screenshots of the app MlmUP to the Internet.

    In June 2016, a sales representative at a New York-based software testing company received an order to test the mobile application MlmUP, which is designed to manage business networks, train new company recruits, and track goals and objectives.

    One of the center’s employees, Karl (he requested for his last name not to be used to protect his identity) confirmed that all sales representatives must sign a nondisclosure agreement regarding confidential information, including information about applications such as MlmUP. “The penalty for violating this item is dismissal and a fine of $21,547. Such a strict policy is required for our customers to trust us,” Karl said.

    On August 9 on a multi-level marketing forum (mlm.com/forum), the tester Kevin Taylor posted a screenshot of the application along with a brief description of the function of MlmUP. Taylor was involved in regression testing the application and verifying the featured updates.

    Afterward, some of the forum’s users talked to Taylor to understand why he had posted that confidential information to the MLM forum. Taylor explained that he had returned home from the Hot Snow nightclub, where he had consumed “6 whiskey and Cokes as well as something else, I don’t remember what.” As was Taylor’s custom, he surfed the MLM forum before bed to collect work information.

    As part of testing the MlmUP application, Taylor regularly spoke on the forum with networkers in order to better understand their way of thinking. That evening, he surfed a thread on which users share business problems and talked with the user Nikki49. Taylor told Nikki49 about the work that he had been up to lately and posted a screenshot of the MlmUP app to back up his story. Nikki49 then saved the screenshots and posted them publicly on Reddit with the label “solution for the network business.”

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    The next day, Taylor realized his error and removed all the content from the MLM forum, but the material shared to Reddit had already reached a ranking of 4789 and received 183 points.

    Kevin Taylor then tweeted:

    image04

    On August 11, the post was deleted. Presumably the information security team for MlmUP discovered the leak and asked the site administration to remove information that violates its copyright guidelines.

    The press service for the sales representative said, “Kevin Taylor had indeed violated the nondisclosure agreement, so he was fired and will pay a fine that will cover the losses.”

    Detailed description of the leak
    Screenshots:
    We currently know that the app teaches new recruits and solves issues surrounding control and loyalty programs.
    It comprises the following sections: Contacts, Knowledge Base, Target, Calendar, and Control.

    image00

    image01

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    The authors of the application provide a reminder for important calls and built planning functions into the app. Therefore, employees do not need to keep a notebook or other planning device – the app can handle the entire process.

    Additionally, the user sets desired goals in the Goals tab and can even customize the color of the interface. These features can increase the user’s motivation to work on his or her business.

    Developers adapted the application MlmUp for users of the top 20 network marketing companies, such as Amway, Avon, or Mary Kay. In September, MlmUP will be available for Android and iOS. The author of the app is still unknown.

    Authtor: Bob Cornella,  Journalist of The Huffington Post.

    Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of Networkingeye.com and Networkingeye.com does not assume any responsibility or liability for the same.

  • Onecoin – a possible Ponzi Pyramid Scheme

    onecoin-a-possible-ponzi-pyramid-scheme

    Key Highlights:

    • Belgium’s FSMA warns of OneCoin

    • False claims made by the owner and COO of Onecoin about her qualifications

    • Two co-founders involved in other scams before

    Onecoin, an alleged cryptocurrency and trading undertaking based out of Bulgaria,does not have any provable support to back its business claims which can prove its legitimacy. The Belgium’s Financial Services and Markets Authority (FSMA) has also published a warning in this connection. The FSMA stated that neither Onecoin, nor the people promoting it are recognized or authorized by the watchdog. It added “The FSMA once again warns the public of the risks associated with virtual currencies,”

    It’s one of the exceptional occasions where a regulator has issued a specific warning for a cryptocurrency or an exchange; however it seems that OneCoine is, in actuality, a multi-level marketing global scam scheme. A publication in 2015 in www.cointelegraph.com, OneCoin.eu and the One World Foundation were declared scam operations. The amount of proof confirming that OneCoin is a pyramid scheme is significant.

    Onecoin’s Director involved in scam operations

    The directors of Onecoin were earlier involved in other known scam operations. Its resources contain no provable evidence for any of its business claims. Also documentation uploaded to support claims often conflicts with the claims themselves. Quoting evidence the Coin Telegraph said Dr. Ruja Ignatova, the owner and COO of Onecoin has made false claims about her qualifications. Ignatova completion of a Harvard negotiating course is present only on the One World Foundation website even with a scan copy being present in the resume. In her own websites she mentions that she graduated from Oxford with Magister Juris in European in 2004 in Comparative Law .These websites are blogs from WordPress, Blogspot and Weebly. The latter two in German mentions that in 2004 Ignatova started working post her graduation from Oxford. A scanned certificate on OneCoin.eu states she completed the program in 2009; no document from 2004 is visible.

    Co-Founders have history of scam

    Besides this,the other two co-founders ,Sebastian Greenwood and Nigel Allan, also have a history of scam. Greenwood earlier worked with obsolete pyramid scheme called Unaico, which was subjected to a warning by the Pakistan’s Securities and Exchanges Commission. The notice said “illegal multi-level marketing” practices and advised consumers “to refrain from investing/ dealing in these so-called lucrative business schemes, launched by the Company.”

    Allan, the ex-president of OneCoin, was previously implicated in similar pyramid schemes, namely Crypto888 and Brilliant Carbon.

    Onecoin is not exactly a cryptocurrency

    As per the Bulgarian business weekly Capital, the company behind OneCoin is said to be registered in Gibraltar. It has also recently set up its front office in a central location in Bulgaria’s capital Sofia. The weekly does not openly declare OneCoin as a scam. However it did imply that it is not exactly a cryptocurrency . It stated that Onecoin’s cryptocurrency can be used only within it’s own digital ecosystem, which is not even functional completely. Furthermore, Capital writes, several companies connected to Ignatova are making enormous investments in real estate property across Sofia.

    According to OneCoin’s site, the OneEcosystem has ten sections, including One Forex, OnePay, CoinVegas, OneAcademy, CoinCloud, etc. For example, OneAcademy, claims to have 2101203 “students” taking a six-step educational program, which affirms to turn them into financial experts. Other courses offered are on econometrics, technical analysis, forex trading, risk management, etc,the prices ranging from EUR110 to EUR 27 500.

    The company claimed that it has mined 749,970,000 OneCoins and has millions of global customer base in nearly over 195 countries and six continents is free of governments.One can only speculate this fact now that Onecoin is on intensive tour and has recently held glitzy events in Zagreb, Tokyo, London, Madrid, Istanbul, Helsinki, Pristina, Romania, Kazakhstan, etc, promising fantastic profits and worthwhile payouts for those who bring in more people.

    Uk’s The Mirror in February 2016 reported that fantastic promises were made during these events, like “making a million in a month”. Similar reports in one of the website of Finland called Yle, said that Onecoin is a scam and has the value equal to “Monopoly money”.

    Also, a quick SMN check on the Coinmarketcap.com confirmed that Onecoin is nowhere listed amongst the 650 global cryptocurrencies. This one practically does not exist at all.

    Unethical marketing stunts

    Forbes Bulgaria’s May 2015 issue , published an alleged interview of Ruja Ignatova on the front page. As a marketing stunt OneCoin afterward publicized this on its website. It also circulated this in paper form, at an event held in Dubai. While OneCoin claims it to be an “interview”, however, upon closer scrutiny it becomes clear that the material is a paid advertisement. The cover from the Forbes’ website did not match the one uploaded on OneCoin.eu .James Dollahan , who works for Filipino consulting firm Worldwide Summit, has circulated an email exchange which appears to hold substantiation of the paid ad campaign from Forbes, however, it is still to be verified.

  • Direct Selling Industry – A sigh of relief for unemployment

    direct-selling-industry-a-sigh-of-relief-for-unemployment

    Key Highlights

    • Make in India initiative to become an important tool for improving the unemployment ratio

    • Direct Selling Industry an important source of self-employment

    India stands at a fragile yet deciding stage today. Decisions taken for the improvement of the situations now will have a direct impact on the future. If our nation has to progress, there is a great need to create enough jobs for every youth . In such a time ,”Skill India” which aims at providing more employment has stricken the right cords.

    We cannot ignore the importance of skilled worked force. Thus the industries are trying to put conscious efforts to add value to the skills of their resources.

    The scheme “Make in India” aims at making India into a global design and manufacturing hub. It is encouraging Indian manufacturers to invest more across various sectors. This is creating many employment opportunities in the country.

    Why is Direct Selling the answer for unemployment?

    Amit Chadha, Indian Direct Selling Association, believes that one of the biggest challenges for the Indian Government is unemployment. The government is striving to create more sources of employment. But It is an issue that will need time. It will also need a joint effort of the Indian government and industries in different sectors. Only then the ratio of unemployment will improve over a period of time.

    He further added that for past 20 years direct selling has played an important role in creating employment in India . There are no specific criteria to become a Direct Seller. Anyone can become a part of  this industry and start earning a livelihood.

    Talking about the opportunity direct selling industry provides, he further said, that the industry has gained popularity in the last two decades and reached to every corner of the country. In 2014-15 alone, it has created close to about 40 lakhs self-employed people in India. This number is only expected to growth further.

    Every year, thousands of youth graduate with the hope of a bright future. But the slow growth of the business has affected the employment generation in the country.

    In such case, direct selling industry alone has shown a continuous and steady growth. It has been pushing all limits towards growth.

    Direct Selling a boon for an Economy

    Chadha believes that this industry has helped in shaping the career of millions of Indians, both skilled and unskilled. He adds that the training and the leadership skills acquired from this industry transforms a common man into a true leader. These leaders further mentor many people like him, helping them become a part of the mainstream.

    Chadha further said, “What is significant is the fact that many of the successful Direct Sellers are now helping other people to set up their businesses.” He added, “it is a people’s business, where one helps the other; resulting in building the nation.”

    One of the main magnetism of direct selling industry is its flexibility of working hours. Here people work at their own spare time, without being bound to a 9 to 6 scheduled routine. Many people join direct selling for the extra earning opportunity besides their regular source of income.

    Direct Selling is a flourishing industry, a boon for an economy and definitely, generates employment and a better future. It improves the confidence of the individuals involved, thereby leading both the industry and the individual, towards a growth curve. One can start and manage his own business and generate a decent income with a minimal expense.

    Keeping all this in view Chadha asserted, “The need of the hour is to give a boost to an Industry like Direct Selling that has a socio-economic impact to the lives of many. Not only it generates employment, as a result, the Industry also empowers its workforce with skill, knowledge, power to express, improving interpersonal skills and above all, lead a life of a ‘leader, inspiring other to replicate their success”.

  • Direct Selling Legislation finalized by the Government

    direct-selling-legislation-finalized-by-the-government

    Key Highlights

    • The new legislation for Direct Selling Industry finalized by the Government

    • The state to issue guidelines as per their needs from the model guidelines

    New Delhi : As per sources, the Centre has come up with the legislation for direct selling industry. This legislation will be effective for all direct selling companies such as Tupperware, Amway , Oriflame etc. As per this legislation, the direct selling companies cannot charge entry fee from agents. The company will also need to buy back unsold stocks.

    Apart from this, the companies will have to guarantee a full refund and payback for goods and services that the direct sellers or agents are unable to sell.

    The Consumer Affairs Ministry has prepared these guidelines  as part of the new Direct Selling Guidelines 2016 and will be notified soon.

    Consumer Affairs Secretary Hem Pande told PTI that the ministers have finalized and approved the new guidelines. He also added that these are model guidelines and the states will issue the guidelines as per their needs.

    What to expect from the new Direct Selling guideline

    In this new proposed guideline, there is a clear definition of a legitimate direct selling and ponzi schemes. This will serve as a reference to the investigate agencies to differentiate between fraudulent players.

    The government has specified several other conditions  for direct selling business in India in this new legislation.

    According to sources, one main condition remains no entry fee to become a direct seller and the clause of compulsory buy back of any unsold inventory.

    As on date, the direct sellers need to pay a registration fee along with purchasing products for selling. If they cannot to sell the products it becomes an extra burden on them.

    The new proposed guideline suggests that the companies draw a proper agreement with their direct sellers or agents. The companies will also have to keep complete details of their direct sellers as well as provide them necessary training.

    The Consumer Affairs Ministry will be responsible for monitoring the direct selling industry at the central level. The states will have to set up a regulatory mechanism for the same.

    The guidelines have also underlined the obligation of direct seller, the relationship between direct seller entity and direct seller as well as consumer protection.

    Due to the lack of clear legislation that defines the regulatory framework, the industry is under a lot of speculation. Hence, these new guidelines are framed to help smooth function of the industry which has been providing employment to many in the country.

  • Amway takes concrete steps to triple its turnover in next decade

    Amway takes concrete steps to triple its turnover in next decade

    Key Highlights:

    • Amway to add 8 more products to its existing product lines

    • Decides  to  explore newer avenues like the experience stores and e-commerce to increase turnover

    • Plan to launch an app with no  tie-up with the existing e-tailers like Flipkart or Amazon

    DELHI : One of the leading and oldest  FMCG direct selling company ,Amway plans to add new product lines especially targeted for Indian customers in 2016 . This will likely result in a double-digit growth in FY17 in cookware, health, nutrition and skin care segments showing India’s importance for the parent as per the reports from Edelweiss.

    The report also said that Amway plans to triple its turnover by 2025.

    Currently in terms of growth rate India is considered amongst the top four markets. This new strategy is expected to figure India amongst the top three in the coming five years. The market growth in Japan for Amway has been at 2% and Korea at 5%. Other global markets like Brazil, Malaysia, Mexico and some pockets in the US have shown good double-digit growth whereas market in Thailand has been flat.

    Bhuvan Kapur, Amway vice president (north), said that the company would add 8 more products this fiscal year.Currently, Amway has over 140 products in five major categories –personal care, nutrition & wellness, cosmetics, home care, and great value products. 70% of their revenue is credited to the first two categories of product.

    As per the report Nutrilite, which constitutes 50% of the company’s turnover in India, has recently taken Farhan Akhtar as their brand ambassador.  The report also stated that the company has also set aside INR 1 billion for setting up 10 to 12 experience stores. These stores are said to be in partnership with Microsoft and will be utilized to showcase its range of products to distributors, business partners and customers.

    Beside this Amway also has e-commerce presence through its existing website and is said to contribute about 30-35% of the total Indian sales. The company also aims to take this number to 55% in next ten years. In the other global markets like the US and South Korea, the company’s online sale constitutes about 70 -80% of sales and the company is setting these countries as their benchmark.

    Further the company also has plans to launch an app in coming months and has no plans to tie-up with the existing e-tailers like Flipkart or Amazon and plans to remain a B2B player said the report.

    The company is committed to manufacturing all its products locally following the Government’s “Make in India” campaign in India and has also set up its manufacturing facility in Tamil Nadu.

    The report also confirmed that it currently has five million independent agents and it plans to increase this number to 18 million in the coming next ten years.

    About Amway:

    Amway, earlier known as The American Way, is an American company founded in 1959 by Jay Van Andel and Richard DeVos. It uses a multi-level marketing model to sell its products. Its product lines include home care products, personal care products, jewelry, electronics, Nutrilite dietary supplements, water purifiers, air purifiers,  insurance, and cosmetics. Amway has its global presence in more than hundred countries around the world.In 2012 Amway ranked No.26 amongst the largest private companies in the US by Forbes. 

  • Federal Trade Commission rules out Herbalife as a pyramid scheme

    Federal Trade Commission rules out Herbalife as a pyramid scheme

    Key Highlights:

    • Herbalife  to pay  US$200 million in settlement of complaints of misrepresentation

    • The company to restructure its compensation plan

    • Distributor to  be paid based on actual retail sales

    NEW YORK – The U.S. Federal Trade Commission cleared Herbalife, a direct sales nutrition company, of the allegation of being an illegal pyramid scheme.

    However, said that the company has been strictly instructed to pay the US$200 million in settlement of complaints made by its consumers of deceiving them over the potential gain of selling their products.

    The decision has brought a sigh of relief for Herbalife , which has been facing allegation and accusation from  powerful Wall Street activist investors including Carl Icahn and Bill Ackman. The news has been welcomed by its investors, sending its shares up by 15 percent in morning trading

    The investigation by FTC mainly focused on the multi-level structure of the  people buying Herbalife’s products and recruiting further people to redistribute them. This as per the FTC only created a chain of distributors which however was not a clear evidence of any actual retail demand of their products.

    Herbalife was charged with tricking consumers into believing that they could make a substantial profit by selling their products in the market.  FTC further charged Herbalife that its compensation structure fundamentally paid its distributors for recruiting more distributors and did not  actually relate to retail demand.

    The average amount earned by its distributors in 2014 was under US$300; with the false promise of future earnings of thousands of dollars, each month said FTC.

    As per the settlement, Herbalife has been instructed to restructure its compensation plan in such a ways that it rewards actual retails sales of its products to customers.

    As per the settlement, Herbalife will pay US$200 which will go to distributors in Herbalife’s “Nutrition Club” who claim to have brought a large volume of products and incurred loss. FTC said that it is a case of misrepresentation. Herbalife also agreed to change some of its business practices and will have to prove that its number for the retail sales are hundred percent precise. According to the company’s statement, its distributors will now be paid based on actual retail sales and not for buying the product for their own private use. Also going forward its distributors will be required to produce actual receipts of retail sales in order to be paid. As per the company, it will now rely on a mobile app which will facilitate in tracking sales and distribution more closely.

    Edith Ramirez, FTC Chairwoman said, “Herbalife is going to have to start operating legitimately, making only truthful claims about how much money its members are likely to make.”

    However in a statement, Herbalife claimed that many of the FTC’s allegations were “factually incorrect” and said that the terms it agreed to “do not change Herbalife’s business model as a direct selling company.”

    About Herbalife:

    Herbalife International is an American direct selling company established in 1980. It mainly develops markets and sells nutritional supplements, weight management, sports nutrition and personal care products. The company’s nutrition, weight management, energy and fitness and personal care products are available solely to and through Independent Herbalife distributors. Currently, it has its global presence in more than 90 countries.