MLM News

Category: Featured

Featured

  • Top 5 Fastest Growing MLM Companies in India 2023: Vestige, Amway, Herbalife, Forever Living, and Modicare

    Top 5 Fastest Growing MLM Companies in India 2023: Vestige, Amway, Herbalife, Forever Living, and Modicare

    Network marketing is a way to earn extra income in one’s free time, without any prior knowledge or experience. Network marketing, also known as direct selling and multi-level marketing (MLM), is a pyramid-style marketing strategy in which a product is sold by a chain of individuals rather than in a physical store, and these individuals earn commission on the products or services they sell, with higher positions in the company’s pyramid receiving more commission and lower positions receiving less.

    It is difficult to determine which MLM company is the fastest growing in India as different sources may have different rankings and criteria for determining growth. However, according to various web search results, some of the fastest-growing MLM companies in India include:

    1. Vestige
    2. Amway
    3. Herbalife
    4. Forever Living
    5. Modicare

    Vestige is an Indian direct-selling company that was founded in 2004. The company offers a range of personal care, home care, and wellness products, as well as a business opportunity for individuals to become independent distributors and sell Vestige products. Vestige has seen significant growth in recent years, with a reported annual turnover of over INR 10,000 crore (over $1.3 billion) in 2020. The company has also expanded its operations globally, with a presence in over 15 countries worldwide. In addition to its financial growth, Vestige has also received various awards and recognition for its products and business practices.

    Amway is a well-known MLM business that operates in various industries including health, beauty, and home care. The company was founded in 1959 and has since become one of the largest MLM businesses in the world, with a total turnover of $8.6 billion in 2019. In India, Amway has seen consistent growth and expansion in recent years. The company has launched new products and entered into new markets in the country, and has also invested in various initiatives to support the growth of its independent business owners in India.

    Amway Controversy in India:

    Amway, like other MLM companies, has faced criticism and controversy in the past regarding its business practices and potential for financial gain. In the past, Amway has faced legal challenges and regulatory actions in various countries, including India. In 2010, the company was banned in the state of Tamil Nadu in India due to concerns about its business practices. However, the ban was later lifted after Amway agreed to comply with certain regulations. In 2017, the company was also involved in a legal dispute with the Indian government over the classification of its business model. However, the dispute was eventually resolved, and Amway continues to operate in India.

    Herbalife is a nutrition and weight management company that was founded in 1980. The company offers a wide range of products including protein shakes, vitamins, and sports nutrition products. In 2019, Herbalife had a total turnover of $4.9 billion. In India, Herbalife has seen strong growth and expansion, with the company reporting double-digit growth in sales in the country in recent years. The company has also expanded its operations in India, with a presence in over 25 states in the country.

    Herbalife Controversy in India:

    Herbalife, like other MLM companies, has faced criticism and controversy in the past regarding its business practices and potential for financial gain. In 2016, the company agreed to pay $200 million to the Federal Trade Commission (FTC) in the United States to settle charges that it operated as an illegal pyramid scheme. The FTC also required Herbalife to restructure its business and implement new policies to ensure that it was operating legally. In India, Herbalife has faced criticism and regulatory scrutiny over its business practices. In 2014, the company was ordered by the Indian Ministry of Consumer Affairs to stop its direct selling activities in the country. However, the order was later overturned by the Delhi High Court, and Herbalife was allowed to continue its operations in India.

    Forever Living is a multi-level marketing (MLM) company that was founded in 1978 and has a strong presence in over 160 countries worldwide. In India, the company has been operating for over two decades and has built a reputation for offering high-quality wellness products made from natural ingredients.

    Forever Living’s product line in India includes a range of skincare, personal care, and nutritional products, as well as supplements that support overall health and wellness. The company’s products are sold through a network of independent distributors, known as Forever Business Owners (FBOs), who are responsible for promoting and selling the products to consumers.

    In addition to its range of wellness products, Forever Living also offers a range of business opportunities for those interested in starting their own home-based business in India. The company provides training and support to help FBOs develop their skills and grow their businesses.

    Overall, Forever Living has a strong presence in India and is known for its commitment to natural, high-quality products and empowering individuals to achieve financial freedom through entrepreneurship.

    Modicare is a direct-selling company based in India that was founded in 1996. The company offers a range of wellness and personal care products, as well as home and kitchen essentials. Modicare operates using a multi-level marketing (MLM) business model, in which independent distributors, known as Modicare Business Associates (MBAs), are responsible for promoting and selling the company’s products to consumers.

    In addition to earning income through retail sales, MBAs can also earn commissions by building their own teams of distributors and by achieving certain performance targets set by the company. Modicare provides training and support to help its MBAs develop their skills and grow their businesses.

    Modicare’s product line includes a variety of wellness, personal care, and home essentials, all of which are made from high-quality ingredients. The company is known for its commitment to using natural and Ayurvedic ingredients in its products, and it has a strong focus on sustainability and social responsibility.

    Overall, Modicare is a well-respected direct-selling company in India that is known for its commitment to natural ingredients, sustainability, and empowering individuals to achieve financial independence through entrepreneurship.

    It’s important to note that the rankings and growth rates of these MLM companies may vary depending on the source and the criteria used to determine growth.

    Direct selling firms, also known as multi-level marketing (MLM) companies, can be a legitimate way for individuals to earn income by selling products or services on a part-time or full-time basis. These companies often offer the opportunity to work flexible hours and be your own boss, which can be appealing to many people.

    However, direct-selling firms have also been the subject of controversy and criticism in some cases. Some people may have positive experiences with these companies and find them to be a good source of income, while others may have negative experiences and feel that they were misled or taken advantage of.

    One potential issue with direct selling firms is that they may rely on the recruitment of new members, rather than primarily selling products or services, to generate income. This can lead to a focus on signing up new members rather than actually selling products and can result in a pyramid-like structure in which the people at the top of the pyramid benefit the most.

    It is important to carefully research and consider the specific company and its business practices before deciding to join or invest in a direct selling firm. This can help you to better understand the potential risks and rewards of working with the company.

    In conclusion, direct selling firms can be a good way for some people to earn income, but it is important to be aware of the potential risks and challenges associated with these companies. It is always a good idea to thoroughly research any opportunity before getting involved, in order to make an informed decision.

    Please share your thoughts in the comments section below if you feel that we have missed any top direct-selling companies in India.

  • Navigating the Maze of MLMs in the Beauty Industry: What You Must Know

    Navigating the Maze of MLMs in the Beauty Industry: What You Must Know

    MLMs, those multi-level marketing setups that promise financial freedom, have firmly entrenched themselves in the beauty business. Here, distributors not only vend products but also rope in others to sell them. The appeal? The belief that beauty products are an effortless sell, beckoning to a vast market.

    Yet, behind the glittery façade lie substantial challenges when it comes to MLMs in beauty. Let’s dive into the cauldron and examine the realities:

    1. Financial Precariousness: Distributors find themselves compelled to invest in their product inventory. If these items don’t find buyers, money slips through their fingers like sand.

    2. Time Abyss: MLMs are notorious for their time demands. Imagine juggling endless hours recruiting new members and pushing products, all while trying to balance the delicate act of family and work commitments.

    3. Pressure Cooker Tactics: MLM companies don’t shy away from applying pressure tactics. They promise fortunes and spin tall tales about their products, all to entice you into their web.

    4. Predatory Shadows: Some direct selling entities stoop to predatory practices, preying on the vulnerable. False claims and sweet nothings lure unsuspecting souls.

    5. Margins as Slim as Razor’s Edge: Shockingly, studies reveal that less than 1% of MLM participants actually turn a profit. It’s a stark truth, painting a harsh picture.

    Tips for the Savvy Navigator:

    • Beware of Upfront Fees: Any company demanding an initial fee? Run the other way.
    • Doubt the Unreal: If it sounds too good to be true, it probably is. Question outrageous earnings and miraculous product claims.
    • Evade Pressure Tactics: Firms coercing you to join? Slam the door shut.
    • Become a Detective: Investigate every nook and cranny of the company, from products to business models.
    • Whispering of the Grapevine: Listen keenly to what the market murmurs about the company. Reputation speaks volumes.

    Exploring Avenues:

    If your goal is to earn in the beauty realm, fret not. Legitimate paths abound. Think about crafting your own business or collaborating with a reputable company. Stability and reward need not be sacrificed.

    Parting Wisdom:

    MLMs, despite their empowering facade, are beasts with burdens. They demand hefty upfront investments and an endless well of time. Think deeply before treading this path. The beauty sector offers myriad roads; choose wisely, for your future is at stake.

  • Direct Selling in India: An Overview of the Industry and its Regulatory Framework

    Direct Selling in India: An Overview of the Industry and its Regulatory Framework

    Direct selling is a business model in which products are sold directly to consumers, usually outside of a fixed retail location. This business model has gained popularity in India in recent years, with many companies choosing to adopt it as a way to reach out to customers and sell their products.

    The direct selling industry in India is regulated by the Direct Selling Guidelines 2016, which were issued by the Ministry of Consumer Affairs. According to these guidelines, direct selling refers to the marketing and selling of products or services, including those of consumer durables, cosmetics, health and wellness products, and others, directly to consumers, away from a fixed retail location.

    There are several advantages of direct selling for both companies and consumers in India. For companies, it is a cost-effective way to reach out to customers and promote their products. It also allows them to gather valuable customer feedback and insights, which can be used to improve their products and marketing strategies.

    For consumers, direct selling offers the convenience of being able to purchase products at a time and place that is convenient for them. It also allows them to learn about the products directly from the salesperson, who is usually well-trained and knowledgeable about the products.

    There are several types of direct-selling business models in India, including single-level marketing, multi-level marketing, and party plan. In single-level marketing, a salesperson earns commissions on the products that they sell directly to consumers. In multi-level marketing, a salesperson not only earns commissions on the products that they sell but also on the sales made by their downline, i.e. the people they recruit into the business. In the party plan model, products are demonstrated and sold at a party hosted by the salesperson.

    There are several direct-selling companies operating in India, including Amway, Herbalife, and Avon. These companies offer a wide range of products, including personal care, home care, and wellness products.

    Despite the popularity of direct selling in India, it has also faced some challenges. One of the main challenges is the lack of awareness among consumers about the industry and its regulatory framework. This has led to instances of fraud and misrepresentation by some companies and salespeople, which has given the industry a negative image.

    To address this issue, the Direct Selling Guidelines 2016 mandate that all direct selling companies must register with the Central Government and comply with certain guidelines. These include having a minimum capital requirement, disclosing information about the company and its products to the consumers, and maintaining proper records of sales and distribution.

    In conclusion, the direct selling industry in India has experienced significant growth in recent years, due to its cost-effective and convenient business model. While there have been some challenges, the implementation of regulatory guidelines has helped to improve the image of the industry and protect the interests of both companies and consumers.

  • Decriminalization of MLM: its Importance and Issues

    Decriminalization of MLM: its Importance and Issues

    June 8 was an important date for many entrepreneurs because that was the day when the Department of Financial Services issued the new notification with the comments from stakeholders about the decriminalization of several laws and provisions as a result of which many people became interested in it, especially the ones working in the legal or business spheres.

    Although most people became interested in the specific act: Negotiable Instruments Act and the decriminalization of the offence of cheque bounce. One more important change mentioned in the notification is the possibility of decriminalization of the schemes of money circulation that can be punished under Sections 4 and 5 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 so it leads to the serious step further in the development of the MLM sphere.

    Rich Dad Poor Dad

    It is not difficult for human beings who have some basic knowledge to see the MLM scheme at the first onset. Maybe you know a person who is always very excited about the «Rich Dad Poor Dad» book and suggests it to you all the time, or maybe a person who used to be your classmate suddenly asks you to come for a meeting in a hotel or a special centre and promises that the information that will be given to you will make you understand everything about successful business, or your relative phones you all the time trying to explain that you can spend your money to earn a huge amount of money.

    It is obvious that there are people who earned a lot using MLM schemes, but also there are many people who couldn’t earn anything, many of them even lost their money and became really upset. However, even if it is impossible to prove statistically, most people decided not to work with these schemes. 

    Decriminalization of MLM its Importance and Issues

    Such MLM pitches can get you into several situations: you can be connected with MLM, or you can be arranged into the direct selling process, or you may be involved in a pyramid scheme. It is proved that a pyramid scheme is a fraud because those who offer you getting in it say that you will only need to pay a little bit for your membership and then say that you will bring your invested money back and earn a lot after recruiting other members who will recruit new members, and so on.

    Every big country has strict laws regarding the necessity of punishment for these pyramid schemes. However, it is extremely hard to distinguish where is the standard MLM company and where is a pyramid scheme.

    MLM and pyramid schemes.

    The Prize Chits and Money Circulation Schemes act 1978

    The Prize Chits and Money Circulation Schemes (Banning) Act was created in 1978 in India, so MLM companies in this country have been struggling with the hard end of the law. The law uses a very wide definition of money circulation schemes and it explains them as schemes because of which a person receives money from a new member of the scheme and says he will pay this new member money if he can recruit other members, no matter if the money paid can come from the membership money of these new members or not.

    It is obvious that advertising or creating the scheme of such a type is illegal but besides, it is also illegal to be a member of this scheme. If a person offences this law, he may be incarcerated for 3 years.

    When the CEO of a very famous MLM company got to prison several years ago as he violated the Act, the Indian Direct Selling Association, which works defending MLM companies, asked to make an amendment to this act. This association was trying to prove that the business of MLM company is based on selling goods.

    Such companies are not similar to pyramid schemes because in MLM companies all members can generate profits for themselves and for the members staying in the levels above by selling products, instead of recruiting new members like in pyramid schemes.

    The necessity of easy finding which is MLM and which is a pyramid scheme; the possible necessity of having a new law.

    Sellers that provide goods from their companies to consumers outside of a retail environment, for example, a store, or a special marketplace can be called «direct sellers». For selling anything they contact customers person-to-person and they will definitely need to find some distributors to develop the business. It is impossible to criminalize the fact of recruiting new members nowadays. The proposal regarding decriminalization was created to develop businesses that suffered a lot because of the slowdown caused by Covid-19 and quarantine.

    The only thing that could be more effective for the development of direct selling and MLM than decriminalization is if the act can have modification with the guide to distinguish genuine companies using MLM and pyramid schemes that use people illegally.

    The Prize Chits and Money Circulation Schemes (Banning) Act was signed about 40 years ago. During previous decades, India was developing in the corporate law sphere and securities regulations extremely fast which now have useful tools and methods to detect and stop pyramid schemes.

    The Standing Committee on Finance of the Lok Sabha created the 21st report in September 2015 where it recommended 2 main steps to support direct sellers and MLM.

    • The first step is making the official registration required for all direct selling processes facilitated through the main regulatory body. 
    • The second step is creating an understandable definition of direct selling which will help to distinguish it from any pyramid scheme.

    Based on that report, the government made the Direct Selling Guidelines 2016 with the definitions of direct selling and pyramid schemes. However, these definitions are circular because the direct selling companies rely upon such companies working without using a pyramid scheme, while the pyramid schemes rely upon the scheme which is not connected with a direct selling company. Besides, these definitions lead to the confrontation with the Prize Chits and Money Circulation Schemes (Banning) Act.

    The act, in general, doesn’t allow to get any benefit or income for recruiting new members, while that new guideline allows such benefits if they were caused by selling goods. 

    Simple decriminalization will lead to the fact that people will be vulnerable to pyramid schemes.

    Besides, it can worsen the trust deficit situation for people working in this sphere, because they won’t be able to understand what is a direct seller, what is MLM, and what is a pyramid scheme. It is possible to implement all recommendations created by the Standing Committee on Finance and solve the conflict between the Act and the guidelines by creating a new law and elimination of 1978 Act, along with an accreditation system of these schemes, as a result of which businesses will finally develop again and the public interests will be protected as well.

    kindly share your opinion on the above article.

  • Top Direct Selling Companies

    Top Direct Selling Companies

    Let me ask you a question.

    How can you convert your Daily Expense into an investment?

    Yes! you heard it right, Expense into an investment.

    Well, let me help you.

    The answer is Network Marketing. Yes, by starting a Network Marketing business you can convert your daily expense into a passive stream of income. However, before starting a network marketing business it is important to select a network marketing company with whom you want to associate. 

    To help you with it, we have created a list of the top Direct Selling Companies in the World. 

    DSN Global Top 100 Direct Selling Company in the world

    Direct Selling News is the premier publication for the Network Marketing Executives.

    Every year DSN creates the Global list of top direct-selling companies in the world to provide a clear picture of the growth of the industry.  

    The list offers a unique perspective on the global impact the industry has on economic and social levels. It provides a scope of learning not only for industry members but also for researchers, investors, and those seeking opportunities within the industry.

    2020 DSN Global 100 is based on the Revenue generated by the company in 2019.

    A few highlights of this year’s list are

    • 48% of companies grew year-over-year from 2018 to 2019
    • 2 of the top 10 companies reported increased revenue
    • Six companies grew by $100 million from 2018 to 2019
    • Companies ranking 11-25, seven reported increased revenue
    • Companies ranking 25-50, 15 reported increased revenue

    THE DSN GLOBAL 100 LIST

    In the year 2020, the DSN has acknowledged 50 Companies achieving more than $100 million in revenue.

    RANKCOMPANYREVENUE(2019)PRODUCTSFOUNDEDLOCATION
    1Amway8.4BHealth, Beauty, Homecare1959USA
    2Herbalife Nutrition4.9BNutrition & weight control products1980USA
    3Avon Products Inc.$4.76BBeauty, Household & personal care1886USA
    4Vorwerk$4.23BHousehold appliances fitted kitchens or cosmetics1883GERMANY
    5Natura$3.66BBeauty products, Household & personal care, skin care, solar filters, cosmetics, perfume & hair care products1969BRAZIL
    6Coway$2.59Bwater purifiers, air purifiers, bidets, water softeners, mattresses1989MALAYSIA
    7Nu Skin$2.40BPersonal care products & dietary supplements1984USA
    8Tupperware$1.80Bkitchen & home products1948USA
    9Oriflame$1.47BCosmetics, beauty, skincare products1967SWITZERLAND
    10Ambit Energy$1.31BElectricity & natural gas services2006USA
    11Pola$1.24BSkincare & cosmetics1929TOKYA
    12Belcorp$1.17Bagrochemical products1968PERU
    13PM-International$1.11BFood Supplement1993GERMANY
    14Jeunesse$1.1BBeauty and Wellness2009USA
    15Telecom Plus$1.08BGas, Electricity, Landline1996England
    16USANA$1.06BNutritional products, dietary supplements & skincare products1992USA
    17Yanbal$885MCosmetics, beauty products, jewelry1967PERU
    18Medifast/OPTAVIA$714MHealth care products1980USA
    19Arbonne$672MBeauty, Health and Wellness products1975USA
    20Team National$651Mhome and life insurance, home flooring and furnishings1996USA
    21Miki Corp.$505MFood supplements, health products1966JAPAN
    22Scentsy$472Mscent, oils, food, kids products2004USA
    23Plexus Worldwide$467MHealth care products2006USA
    24MONAT Global$388Manti-aging skin care & hair care products2014USA
    25Faberlic$385Manti-aging skin care & hair care products1997RUSSIA
    26Nature’s Sunshine$362MHealth care & Wellness product1972USA
    27WorldVentures$335MMembership of discount vacation clubs & sales of travel services2005USA
    28For Days$308MDietary supplements & Cosmetics1997JAPAN
    29Hy Cite Enterprises$306Mkitchen products1959USA
    30Vestige Marketing$302MWellness, Personal, Beauty2004INDIA
    31Noevir$286MSkincare1978USA
    32Farmasi$250Mbeauty and personal care1923TURKEY
    33New Image Group$243Manti-aging, wellness and beauty 1984NEWZEALAND
    34Naturally Plus$242Mhealth and skincare1999TAIWAN
    35ARIIX$230MNutritional supplements, skincare, weight loss, and water purification system1979USA
    36LifeVantage$226Mwellness and personal care products2007 USA
    37Pure Romance$225Madult products1993USA
    38Color Street$220MBeauty1984USA
    39Menard$220Mcosmetics, skincare1959JAPAN
    40Noni by NewAge Beverages$200MSkincare, oil products, cosmetics, beverages1993USA
    41Giffarine$198MBeauty & Personal Care1997Bangkok 
    42KK Assuran$193Mskincare1994JAPAN
    43Immunotec$180Mnutrition & wellness products1996CANADA
    44ASEA Global$170Mskin care & health products2007USA
    45MyDailyChoice / HempWorx$170MHealth, Wellness and Fitness2014USA
    46Mannatech$158MDietary supplements & personal care products1993USA
    47Southwestern Advantage$138Meducational books, software,1855USA
    48Elepreneurs$135MCoffee2017USA
    49Usborne Books & More$119MBooks1989UK
    50Xyngular$108Mhealth and wellness2009USA

    SOURCE: DirectSellingNews

    Top 10 Direct Selling Companies in India

    1. Vestige Marketing Pvt Ltd.

    Vestige Marketing Pvt Ltd is the top Indian Direct Selling Company and it is the only Indian direct-selling company that is in the World’s Top 50 Direct Selling Companies as per DSN.

    It started its operation in the year 2004 and since then the company has been showing tremendous growth. It deals with a variety of product categories like Personal care, Wellness, Homecare, etc. 

    Vestige has been building a wide network of distributors with over 2500 online and offline sales outlets across India.

    • Founded: 2004
    • Founders: Gautam Bali, Kanwar Bir Singh, Deepak Sood.
    • Headquarters: India.
    • Products: Wellness, Homecare, Personal Care.
    • Turnover: Around 2250 Cr.

    2. Modicare

    Modicare is an India Direct Selling Company established in 1996 under the leadership of KK Modi and Sameer Modi. The company deals in personal care, home care, wellness products, etc. The core philosophy of Modicare is to enhance, engage, and empower the lives of people.

    • Founded: 1996
    • Founders: Samir Modi
    • Headquarters: India.
    • Products: Wellness, Homecare, Personal Care.
    • Turnover: Around 1962 cr.

    3. Amway

    Amway is the oldest Network Marketing Company in the world. It is a US-based direct-selling Company that came to India in 1995. Amway sells more than 150 personal care and health products through distributed marketing. Amway is known for its quality products especially the world’s No. 1 Nutrilite supplement brand.

    • Founded: 1995 (India).
    • Founders: Richard DeVos, Jay Van Andel.
    • Headquarters: USA
    • Products: Nutrition, Healthcare, Personal Care.
    • Turnover: Around 63000 Cr. (Worldwide).

    4. Herbalife 

    Herbalife is the second-largest Us based Network Marketing Company. It came to India in 1999. The company is famous for its nutritional supplements made out of herbs and fruits. 

    • Founded: 1999 (India).
    • Founders: Mark R. Hughes
    • Headquarters: USA
    • Products: Nutrition and Fitness Supplement.
    • Turnover: Around 36525 Cr. (Worldwide).

    5. Mi Lifestyle Pvt Ltd.

    Mi Lifestyle Marketing Pvt Ltd is an India Direct Selling Company. It is established in the year 2013 in Chennai. The company offers a wide range of quality lifestyle products for day-to-day purposes.

    • Founded: 2013 
    • Founders: Omar Arshak Jawhar and Vittobha Suresh
    • Headquarters: India
    • Products: Personal care, Wellness, Homecare
    • Turnover: Around 900 Cr.

    6. Forever Living

    Forever Living is a US-based Network Marketing Company. The company is famous for its exclusive base on Alovera.

    • Founded: 1978
    • Founders: Rex Maughan
    • Headquarters: USA
    • Products: Aloe vera drinks, cosmetics made from bee-derivatives
    • Turnover: Around 17000 (Worldwide).

    7. Oriflame

    Oriflame is a Switzerland-based Network marketing company. It Offers mainly beauty and skincare products. 

    • Founded: 1967
    • Founders: Robert af Jochnick, Jonas af Jochnick
    • Headquarters: Sweden
    • Products: Skincare, Cosmetics
    • Turnover: Around 10500 (Worldwide).

    8. RCM

    RCM is an Indian-based Network Marketing company. The main Products of RCM is Grocery items, Cosmetics, and Garments.

    • Founded: 1982
    • Founders: Tilok Chhabra Chand
    • Headquarters: India
    • Products: grocery items, cosmetics, and garments
    • Turnover: Around 700 cr.

    9. IMC

    IMC is an Indian Network Marketing Company that deals in organic Ayurvedic patented herbal, health, beauty, and personal care products. It was started in the year 2007 by two enthusiastic named Dr. Ashok Bhatia and Mr. Satyan Bhatia with a mission to create a better world.

    • Founded: 2007
    • Founders: Dr. Satyan Bhatia & Dr. Ashok Bhatia
    •  Headquarters: India
    • Products: herbal, health, beauty, and personal care
    • Turnover: Around 450 Cr.

    10. OkLife Care.

    Ok life care is a new Indian network marketing company that started in the year 2016. The company deals in Personal care, Wellness, and Homecare products.

    • Founded: 2016
    • Founders: Joginder Singh DaIa, Dinesh Kumar Saharan
    • Headquarters: India
    • Products: Personal care, Wellness, Homecare

    CONCLUSION

    The Indian Direct Selling industry has been growing over the years but still, it is far away from the Global perspective. It has tremendous growth potential in India. The introduction of the Direct Selling Guidelines in 2016 by the Indian government has given a boost to the industry and has created awareness among the people but still, the industry has a long way to go.

    About the Author.

    Hello, my name is Ayush Poddar, I am a Btech graduate from NIT Rourkela. I am a Digital Marketer and I help businesses in building sales funnel strategies.

    I am a Network marketing enthusiast and believe the industry has tremendous growth potential in India.

    I love reading non-fiction self-help books, traveling, and Connecting with new people.

    If we have missed any MLM/Network Marketing company then please add in the comment section and also share what do you like about the company.

  • 8 Steps to Build an Effective Network Marketing Strategy

    8 Steps to Build an Effective Network Marketing Strategy

    Whether you work alone as an entrepreneur or as a part of a startup or an eCommerce website representative, networking marketing is worth looking into. In short, network marketing represents a unique and personal method of sales and advertisement. According to statistics, network marketing has shown consistent growth across the US, with average income for marketing representatives ranging around $55,500 on a yearly basis.

    This is a nice sum to consider for the work it takes to represent a product portfolio in your local area. However, building an effective marketing strategy for this type of sales can be difficult. Let’s take a look at several tips which can help you create your own network marketing strategy and earn more revenue as a result.

    1. Corroborate your Credentials

    Due to the door-to-door nature of network marketing, the industry faced its fair share of accusations over the years. Many false advertisers have claimed to be representatives of certain companies in order to scam unknowing customers of their hard-earned money.

    In order to avoid that, you should corroborate your credentials, claims and identity. Make sure to have legal paperwork with you, which states that you are indeed a salesperson for a network marketing firm and that you have permission and ability to sell their products.

    • Build a Product Portfolio

    Once you have the necessary paperwork ready, you can create a product portfolio which you will sell to potential customers. A product portfolio can consist of anything that you consider worth selling in your local area. Some of the most popular network marketing industries include fitness, makeup products and house appliances.

    Joseph Frank, content marketing specialist at Top Writers Review spoke on the matter recently: “A good product portfolio is necessary in order for you and your company to appear professional to casual viewers. Create a list of products and services which are available for purchase and make sure that you always have those items available for sale.”

    • Create a Customer Profile

    Very few items can be sold to an unlimited number of people. This is because we differentiate customers based on their genders, age, lifestyle choices and professional occupations.

    In order to know which people to target with your products, you need to create a customer profile beforehand. Take some time to consider who would be the perfect customers for the products you have on offer and make sure to market yourself to those people first and foremost.

    • Develop a Sales Pitch

    It can be very bad for your reputation to show up at a sales meeting without a sales pitch standing by. A sales pitch usually consists of a small “speech” in which you explain why your products are good for that particular customer.

    Make sure to prepare answers if any of your customers ask something like “how are your products different than the competitors’?” since these are difficult questions to answer correctly. Be professional and respectful of other network marketing brands since it can damage your own credibility if you start gossiping.

    • Provide Social Proof

    Another point of contempt worth noting in terms of network marketing is the social proof involved – or lack thereof. People will rarely want to buy something without solid proof that the item works as advertised.

    This means that you should have some customer reviews, sales data and the features & benefits list available for unsure customers. That way, you will add a sense of security and trust to your potential customers and ensure that they make the final purchase after being reassured of your products’ performances and quality.

    • Establish a Social Media Presence

    Customers often check online resources for additional information before making a purchase. It’s a good idea to create dedicated network marketing pages on platforms such as Facebook, Twitter and Instagram before you start the sales process.

    This will allow your customers to check for more information online and come across your pages fairly easily. You can use these pages to post product discounts, sales updates, satisfied customer images and other marketing materials.

    • Offer Verified Information

    No matter whom you talk to in regards to your products, network marketing only works as long as you are honest about your products. After all, you want to build a business around product sales without relying on cheap scam tactics (as we’ve mentioned previously).

    Brush up on the information surrounding your products and speak truthfully about their features, usage and pricing. Depending on whether you use door-to-door sales tactics or rely on an eCommerce website, you can offer product demonstration and trial periods to your customers. The friendlier and more helpful you appear to be, the easier it will be to seal the deal and sell a product.

    • Follow-up and CTA

    Lastly, even if a customer is reluctant and unsure of whether or not they want to buy your product, you still have a chance to sell. Calls to action are a great marketing tactic which can help you achieve bigger sales numbers in network marketing.

    If your customer is passive and doesn’t ask any questions about your product, you can do that instead. Ask them whether they are happy with what they see, what they would use the product for and how does the price sound to their purchase abilities. Most importantly, ask your customers about when you can reach out to them to ask again about whether or not they will buy your products. Do your best to follow up on every sales attempt you made in order to get a second chance at selling your product to potential customers.

    In Summation

    Network marketing requires you to act like a professional salesperson if you want to succeed and build a career in the industry. If you choose to work with others in a network of salespeople, develop a clear plan on how you will do that.

    Network marketing does allow you to cooperate with others and sell even more products through teamwork. However, in that case, you should create a business model and split your profits evenly between the members of your network.

    Image source: https://www.pexels.com/photo/startup-planning-notes-mac-book-7357/

    Author’s bio.

    Daniela McVicker is a blogger with a rich experience in writing about UX design, content planning, and digital marketing. Currently, she is the chief contributor at Topwritersreview where she helps individuals and organizations improve their web content writing, design, and planning skills. Her posts are always packed with examples and actionable content that readers can put straight into action.

  • HOW FRAUDSTERS ARE ABUSING THE MLM INDUSTRY

    HOW FRAUDSTERS ARE ABUSING THE MLM INDUSTRY

    There a big difference between multi-level marketing companies which promote products and which build a network through a pyramid scheme. In fact, the latter makes money only when people sign up to use the products for themselves.

    According to many industry experts, the overall success of everyone depends on the ways in which the individuals receive commissions. While the company’s plan works in a different way altogether, everything boils down through the compensation plan. Some people may be tempted to use the IRs for their own benefits. But, rather than helping them grow with the business and be recognized for their accomplishments, such individuals tend to exploit the people under the network or the downline.

    A well-known writer of a magazine stated that illegitimate MLM companies promise to offer incentives for those who bring in recruits. But, instead of focusing on the sales to end consumers, the prime difference lies only on commissions that are fetched from retail sales or inventory sales to other distributors.

    Lawmakers and the industry have been put their efforts vigorously to face the worst problems. It’s also possible that people keeping an eye on the internet where doubtful charges may be highlighted in personal blogs. The person may claim to have earned from the business but that’s not the actual case. Abuses also occur in some situations, but independent representatives may collaborate with unscrupulous operators to act smart in the following ways.

    Compensation plans with a promise

    Sales representatives who are at the top of the pyramid might earn a good amount of money than the ones in the network. This surely indicates that everyone is involved with a pyramid scheme. The entire commission is earned only through appointing new individuals. On the other hand, the rest are at a big loss because the earning is not shared in any case.

    Stockpiling

    As someone comes up with the idea of network marketing, fraudsters assign the task the people for making purchases. As they join the network, they are qualified to earn commissions. But, this is a smarter way of running a network marketing business. The scheme is deemed to be Ponzi because the network grows simply because individuals have the only option to persuade others for buying the products.

    Channel-stuffing

    Coming up with a revised product is something that fraudsters think about. This would seem great and create an impression that the company is enhancing product development. But, eventually, the earlier products have to be disposed off because they are out dated. In fact, the independent representatives have to shell out more money to buy them. They have no other option if they wish to continue managing the business for a long term.

    Insufficient controls

    In the network marketing realm, the representatives are always trained not to make false claims. This might be often misleading when people come to know that it’s worthless to purchase the items. So, if this is not the case, then main motive would just be recruiting new people to the network. On the other hand, nobody would benefit as per the compensation plan the company has presented.

    Pay to join

    Requesting representatives to pay fees could sound fishy. Even if the prime motive of growing the network is fulfilled, the upstream individuals would only be earning. After all, a legitimate MLM business grows only when everyone seeks the potential of earning something extra. It should be far beyond what they earn from the nine to five jobs.

    Doubtful sales tools

    A new joinee may be persuaded to buy DVDs that are packed with a set of training sessions. This is often the best way to gather money especially when someone is a poor performer. The upline mates are bound to get something from them when they understand the situation they are going through. This could be considered as robbing money when the individuals are planning to move out from the network.

    Indirect motivation

    Motivation is something that organizations boost for their employees. Some MLMs just like to enhance it with messianic language. They may also put forth an impression of delivering the purpose and being involved in improving community living. Well, this is tactic to lead the representatives to be loyal. They still follow what’s been stated even when they are losing money. Nobody can ever figure out what might be happening behind the scenes.

    According to a reputed Direct Sales Association, code of ethics has been presented to prevent abuse. But, on the contrary, the laws can be enforced in other regions of Asia. In many cases, everything is dependent on the management style, the skills with which the business is managed, and the long-term benefits that can be enjoyed. It could either be through ethical means or responsibilities in accomplishing the sales. In case someone needs assistance, then he can approach an MLM coach. This would lead him in the right direction and help him grow the network like never before.

    Read MOre:

  • John Oliver calls MLM industry a ‘pyramid scheme’

    John Oliver calls MLM industry a ‘pyramid scheme’

    The Last Week Tonight with John Oliver on the HBO channel aired an episode on November 06,2016 demonstrating how direct selling or MLM companies use unethical practices to make money.

    John Oliver mocking the  MLM industry  said that they generally have two things in common- “first, you don’t see them on store shelves, you buy them from distributors like friends , family , co-workers and secondly they are always looking for more distributors to join them. And they have pretty attractive message” of how it helps you become your own boss, pay your own bills and flexi working hours.

    Oliver said that though the MLM companies may present their business as a great opportunity to make a lot of money, however, the chances of success are very remote. He called it a pyramid scheme where only a few people at the top make a huge amount of money.

    The main focus of the episode revolved around the point that people who join the MLMs make money from recruiting more distributors rather than from the actual sale of products to the customers outside their distributors.

    He however also acknowledged the fact that the industry has done around $36.12 Billion business collectively in the US in the year 2015.

    Multilevel Marketing: Last Week Tonight with John Oliver (HBO)

    The episode focused on a dozen of MLM companies like Vemma, Youngevity, Kyani and mostly Herbalife. Almost half the episode talked about Herbalife and the claims made by its distributors for which the company had got into trouble recently with the FTC. Herbalife competes with Amway in the vitamin and supplement line of products. Earlier this year, Federal Trade Commission had ordered Herbalife to pay $200 million to compensate distributors who lost money. The FTC also required them to some make major changes in its sales and distribution practices.

    Amway expressed its disappointment at the misrepresentation of the direct selling industry which has given an opportunity to many people across the world.

    In 1979 Amway was the first Direct Selling / MLM company to be investigated. The federal agency ruled out the allegation of illegal pyramid scheme but said that it was certainly guilty of price fixing and overstating earn potential.

    However, it was also interesting to see that Oliver did not mention Amway and the examples given were mostly that from Herbalife. Amway a giant of the Direct Selling or MLM industry, headquartered  at Ada, collects more than a quarter of the industry’s $36 billion in annual revenue.  It was indeed very interesting to note that not one example of misrepresentation by Amway was mentioned in the episode. One might wonder if the episode was indeed an attempt to show the real picture of the MLM industry or to showcase the unethical conducts and misrepresentation by one MLM company.

    The Direct Sales Association published a statement criticizing the show on its Facebook page. They said  “As the voice of direct selling in the U.S., we are proud to represent a vibrant industry of the more than 20 million Americans who are involved in direct sales to do things like supplement their income or balance work with family. We are disappointed by Mr. Oliver’s mischaracterization of our industry and its value to many, including veterans, stay-at-home moms, caregivers and early retirees, among others.”

    The DSA also mentioned that “most direct sellers offer protections and guarantees to their customers and salespeople, many of which exceed Federal Trade Commission (FTC) regulations, as well as federal and state law. In addition, members of DSA adhere to a set of standards as part of our Code of Ethics, which includes requirements that member companies buy back unused inventory at no less than 90% of the original purchase price.” DSA urged the public to take the time to learn the facts on their  website at www.dsa.org/facts.”

    The MLM episode on the YouTube video has been watched more than 5 million times so far.

  • The Status of Network Marketing/MLM/Direct Selling in India

    The Status of Network Marketing/MLM/Direct Selling in India

    Key Highlights

    • The history of network marketing
    • Global industry size
    • Need of the hour for the direct selling industry to thrive and flourish in India

    What is Direct Selling and Network Marketing?

    Before we discuss or try to understand the current situation of Network Marketing /MLM or Direct Selling Industry in India, it is important to understand the Industry first.

    A simple definition of network marketing or Multi-level marketing (MLM) is that it is a marketing strategy wherein a company does not hire sales force or marketing team to market and sell its products. Instead, they have independent representatives who use their personal network to promote the goods and services of the particular company and make a certain percentage as commission on the overall turnover made by them and their team. Network Marketing enables the company to reach its potential customers that it might not otherwise be able to reach with a traditional online or offline marketing strategy.

    Network Marketing, also known as Multi-Level-Marketing is actually a part of the Direct Selling Industry. Direct Selling companies remove the traditional distribution channels in between the consumers and sell their products directly through their independent representatives. In this industry, a person can be a consumer, distributor or a network marketer. Consumers are the ones who only use the products and services from the Direct Selling Company. A distributor is typically someone who is a consumer and also sells the products and services directly to people and earns a retail commission for every sale he makes. Network Marketer is not only a distributor and must sell products and services directly, but also refers and trains other distributors to sell the products and services and build their own businesses. They not only earn retail commissions but also commissions for the total turnover generated by their entire Network.

    This allows people to leverage other people’s effort and earn residual income. So contrary to the misconception, in network marketing, no one is paid for recruiting people, but for the personal sales, one makes or for the overall turnover generated from one’s entire team.

    History of Direct Selling and Network Marketing

    The origin of direct selling or network marketing industry can be traced back to 1886 with the establishment of Avon. This model of direct interaction with the customers was hugely successful. An entirely new chapter of evolution was induced with the introduction of the multi-level marketing compensation plans (MLM plans) by Nutrilite in 1945. In this compensation plan, the individual representative got the opportunity of building their own business by refereeing new distributors into the business and earning revenue from their own sales and the sales of distributors they enrol.

    With its success, many companies adopted the MLM plan, including global players like Avon, Tupperware and Amway. The 1990s saw a growth in the global direct selling market with major players expanding globally and entering newer, promising markets like Brazil, China and India.

    Global Industry size

    As per the study conducted by FICCI and KPMG, Direct selling is a USD167 billion industry globally. Even though the industry grew at a low rate of 5.4 per cent in 2012, due to global economic slowdown,  as compared to the overgrowth rate of 19.7 per cent in 2011, the long-term growth projection of the industry remains robust.

    Industry size in India

    As per KPMG – FICCI report, the Indian market for direct selling or network marketing industry was estimated at Rs.7, 500 crores in 2013-14. It forms around 0.4 percent of the total retail sales in the country. This figure is still far lower than other comparable economies (one-half of direct selling market size of China and one-tenth of Malaysia). As per the reports from FICCI – KPMG Direct selling is likely to reach Rs.64,500 crore billion in India by 2025.

    Challenges In India

    In India, there are no laws or a regulating body for network marketing or Multi-Level-Marketing (MLM) business, hence, subjecting this industry to frequent criticism and lawsuits. The only law that India currently has is The Prize Chits and Money Circulation Schemes (Banning Act) 1978.

    To summarize what the Act says, in simple words, is that the Government legally bans any such schemes wherein the members are paid to recruit members, with no significant products or services to buy or sell and where there is a considerable amount of money collected from people just in exchange for a promise of future returns.

    With no proper law in place, this industry is often targeted with lawsuits of scam and fraud. Even companies which pay proper taxes for the turnover made by the business are unfairly targeted and scrutinized. The important point to be noted is that all earnings of the independent representatives are also taxed at the sources by the Government and yet the same company face problems in its operations in India and have to fight lawsuits in the courts for years without any results!

    The number one issue that is impacting the growth of the direct selling industry in India is the lack of clear legislation that gives clarity and regulates the activities of the direct selling industry. In the absence of such a law, some authorities, have confused or have formed a view that direct selling companies are covered under the provision of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978. The truth be told, this Act in its current form, cannot distinguish between a genuine direct selling company from fraudulent activities such as the pyramid or Ponzi schemes. An amendment in the Prize Chits and Money Circulation Schemes (Banning Act) will create a favourable legal environment for the industry thereby protecting individuals.

    In India, the regulatory environment is also another challenge for the direct selling industry. Because of lack of legislation, often consumers complain is registered under the Prize Chits and Money Circulation Schemes (Banning Act) and are treated as a criminal offence, leading to arrests of key officials, individual representatives, offices getting sealed etc. Such situations send a negative message regarding the business operating environment in India. Many direct selling companies that operate in India face many operational problems, challenges, the allegation as well as media assassination. Companies like Mary Kay wounded up its Indian operations in 2013 citing regulatory environment as one of the reasons. At the point of time, Mary Kay had 2.5 million distributors in about 35 markets globally. In India, it had about 4,500 beauty agents and four third-party warehouses. Amway chairman and CEO, William S Pinckney, was also arrested in 2014 by the Andhra Pradesh Police based on a complaint of alleging unethical circulation of money through Amway’s operation. Other companies like QNET and the likes have also been in the news for illegally extracting money from people based on complaints registered under the Prize Chits and Money Circulation Schemes (Banning Act).

    In this light, it is also very important to understand that these companies are the same companies who globally function in markets with very strict direct selling and consumer protection policy like the USA, UK, Malaysia, Singapore, Vietnam, Dubai to mention a few. It is therefore of paramount importance that the Direct Selling companies and the government together find a legislative solution that will clearly differentiate a legitimate direct selling business from frauds and Ponzi schemes.

    The need of the hour is an amendment to the Prize Chits and Money Circulation Schemes (Banning Act). Direct selling industry did not even exist in India until the early 1990s and to expect that a law passed in 1978 will do justice to the industry is completely unfair. The Act was never intended to regulate direct selling industry, but the misrepresentation and misapplication of this Act has given the investigating authorities the power to seize, seal and arrest on receiving any complaints. This has proved catastrophic for the direct selling industry. Hence the importance of amending this act to clearly define a “pyramid schemes” and distinguish them from legitimate direct selling companies cannot be undermined. Besides this, it is also important that the Government pass new and separate legislation on direct selling. Many countries like Malaysia, Vietnam, South Korea, Indonesia, Japan, Singapore, Vietnam, and even Bangladesh have enacted a law for direct selling which has helped them in multiple ways.

    Separate legislation for the direct selling industry will not only clear the blurred lines between ethical industry players and impersonators but will also help in winning back the confidence of the consumers. As for the industry, it is in double jeopardy at the moment—corrosion of faith and an identity crisis.