Tag: mlm business

The Indian Direct Selling Association – IDSA

The Indian Direct Selling Association (IDSA), a body that governs 18 of the largest direct selling companies in India. Right now there is no law on mlm in India. Due to the absence of proper law to understand MLM, lot of direct sales companies are facing problems. IDSA wanted the government to enact a law to prevent ponzi MLM/Direct Sales/Network Marketing companies from taking gullible people for a ride .

IDSA is an Amway‘s initiative and it is an autonomous, self regulatory body for the direct selling industry in India. The Association acts as an interface between the industry and policy – making bodies of the direct selling industry in India.

Guidelines For The MLM Companies:

Here are few IDSA guidelines for Direct Selling Company-:

The code contains sections entitled “Conduct for the Protection of Consumers”. ”Conduct between companies and Direct Sellers” and Conduct between Companies”. These three sections addresses the varying interactions across the spectrum of direct sales .The code is design to assist the satisfaction and protection of consumers, promote fair competition within the framework of free enterprises and enhance the public image of Direct Selling.
This Code covers all of Indian Direct Selling Association (IDSA) members, their staff, contractors, distributors, agents and independent sales consultant /Direct Sellers, including full and associate members while engaged Direct Selling, for the sale of either products or services.
A member of IDSA may terminate their and their obligations to adhere to the code by resigning formally from the IDSA giving fourteen days’ notice. This however does not negate the obligation by the members to fulfill obligations incurred during the period of their membership.
Obligations to comply with the code shall not cease until the last obligations to do anything required by the code has been performed.
Companies and Direct Sellers shall accomplish consumer order in a timely manner.
Companies shall provide their Direct Sellers a 30 days of cooling period which will entitle her/him to refund of any entry fee paid upon his resigning and returning all material’s received by him at the end of joining.
All companies are required to publicize IDSA‘s Code of Ethics to their Direct Sellers and consumers.

Indian Direct Selling Association (IDSA) Company List:

Amway India Enterprises( Head Office: Noida, UP) : “Best To Believe” means the company that can fulfill each and every needs and can stand well on the customers requirement.Amway can be compared to a tree with several parts, each playing a vital and healthy role.Amway is actively present in the formation of cosmetic to home-care products.
Tupperware : Tupperware has made a pavement between people and profession. It’s a company which manufactures and sell product like bottles ,tiffin’s ,bags, kitchen product etc. and also keeps in mind need of all ages.
Avon : Avon is one of the most renowned company of beauty products in India.Beauty signifies women but Avon is also taking its step towards e-products which can be used by children and men also.For example – launch of bicycles.
Tianjin Tianshi India Pvt. Ltd. : Tianjin is leading companies of IDSA .It provides healthy food supplements and also helps in development of an eco-friendly environment.
Oriflame : Oriflame always tries to make a” Flame of Innovation” by distributing skin care products and other electronic things for both men and women.
Hindustan Unilever Network : Hindustan Unilever Network has covered more than 75% of today’s daily need products either soaps or shampoo & others.Its branch are widely spreaded in each and every product.
C.N.I Enterprises Pvt. Ltd. : C.N.I is a company with homogenous mixture of different products. The growth of company encourages the power of achievement.
A.M.C Cookware Pvt. Ltd. : Only beauty products cannot lead the companies to a higher level and this is proved by A.M.C cookware .The company focuses its attention on the growth kitchen appliances which shows a different sign of innovation.
Altos Enterprises Ltd. : Acne, pimples, wrinkles are major problem faced by today’s generation. So, Altos gives the best products to its customers by seeking nature’s best source.
4Life Trading India Ltd. : The thought of the company is to give benefits of healthy life with a healthy income.
Jafra Ruchi Cosmetics India Pvt. Ltd. : The company aired in 1956 bringing new ideas to India concerning about finance and products. It also tried to bring enhancement in the field of beauty products by giving windows to girls in the world.
Herbalife International India Pvt. Ltd. : The term’ Herbal’ means natural medicinal herbs .The company tries to bring use of natural as well as nutritional and healthy products to people’s lives, though serving the motto of ‘Seed To Feed’.
Elken International India Pvt. Ltd. : Under ISO 9001 Certified company has a cycle chart of T3-Trusted To Care ,Trusted To Nurture ,Trusted To Lead.
Modi Care Ltd. : Modi care is one of the oldest Indian MLM Company and it is also the most renowned company in IDSA. The company not only deals with home or cosmetics care products but also focuses upon agricultural products by providing good fertilizers which helps to bring healthy nutrition .
Max Life Insurance Co.Ltd. : It is a private sector company which aids financial service to its customers.Being on top 4^th position among private insurers it offers protection to 30 lakhs customers.
K-Link Health Care Pvt. Ltd. : K-LINK creates a link between customers and shareholders ,shareholders and staffs, staffs and distributors. The company also tries to create awareness in the society.
Glaze Trading India Ltd. : The company stands for “For You Forever”. The Glaze Trading has made a reputed position in last 10 years by dealing with handful of cosmetic ,home ,dental and skin care.
Daeshan Trading Pvt. Ltd. : The company says the people to enjoy their life with wholesome of nutrition and healthy life by creating financial stability.

More you can read here: http://www.idsa.co.in/members.html

Indian Direct Selling Association Membership:

Several companies can get membership in IDSA on the following basis-:

The methods of operations are fair and comply with the Model Code of Ethics and all relevant Indian legislation.
The company and its promoters should be sound financial standing .The Company must sign to abide by the Model Code Of Ethics.
The company should submit all the fees required by the Association.
The company must submit all required documents for scrutiny along with completed application form.
Company shall not use misleading, deceptive, or unfair recruiting practices in their interactions with prospective or direct sales.
All financial due shall be paid and any withholdings should be made in the commercial manner.

Challenges faced by Indian Direct Selling Association:

Indian Direct Selling Association catalyses’ change by working closely with government on policy issues, enhancing, efficiency and ushering in desired credibility, clarity & confidence in Direct Selling.

IDSA strives to create and further an environment conducive to the growth of Direct Selling industry in India, partnering industry and government alike through advisory and consultative activities. There are few issues faced by IDSA.

Challenges	Suggestions
High incidence of fraudulent companies	Stricter registration policy by Government
Absence of regulatory law/guidelines	Implementation of a single standard workable policy
Lack of training and orientation for leaders	Increase the number of leadership trainings
Low environmental clearances, political risk,	Implementation of a single standard workable policy
and poor logistics and distribution channels
Poor leader motivation	Income enhancement
Contagion effect of fraud companies on the	Implementation of a single standard workable policy
reputation of legitimate companies
Attrition	Increase the number of trainings provided
Harassment by authorities	Implementation of a single standard workable policy
Compliance of special guidelines for MLM	Review the guidelines in terms of international MLM business
issued by Kerala State government	model and practices.

Innovating Ideas for Multi-Level Marketing

Starting an online MLM business requires laying the groundwork for the enterprise itself. For the entrepreneurs who believe a plan is not needed for an at-home enterprise, their effort is doomed from the start. A business plan is the vehicle upon which all businesses move forward.

At the core of the MLM process is the recruitment of a sales force that will generate active and passive income. This sales force is generally referred to as a downline or genealogy. Essentially, it involves building a team of people, who in turn, will build their own team of people, all of whom are connected to each other and the originator of the line.

Compensation is received for each recruit, as well as for each product sale. The percentages are determined by the parent company. For this reason, looking at the compensation package is important to deciding which company to join. The more complicated the compensation matrix, the more difficult it will be to recruit.

Once the decision is made to engage in an online MLM, finding the most reputable MLM company in the marketplace with which to associate is very important. The success of the MLM chosen becomes the success of the business being started. Duplication is a major factor in MLM marketing. Better to duplicate a profitable enterprise than one fraught with problems. The Internet offers a number of websites that rank the best MLM opportunities.

Having a viable product to sell is a must in order to avoid being labeled a ponzi or pyramid scheme. The business cannot just be about recruitment of a downline. This is the primary factor in seeking an existing MLM company from which an online MLM enterprise can be built. The most successful MLM enterprises and the longest lasting sell and or manufacture products that are of good quality and deliver on their promise.

All of the usual and customary procedures for starting any business are also necessary to creating an online MLM business. Developing a comprehensive business plan will reap its own rewards in the long term. Sufficient funding to finance the start-up until sales revenue can take over is essential. Budgeting and financial forecasting are critical as well. The greater the time spent in preparation, the easier the execution.
Starting A Multi-level Marketing Company In India
A manufacturer or a trading venture that produces distinctive and quality product or any kind of services and looking to deliver those services to users globally without putting up a shop or a store can look forward to start an MLM company.

Talking about India regarding the increase in the ratio of network marketing, then it has seen a huge spike. It is considered that a good percentage of the populations are trying to start their own business but because of the huge investment and great manual effort required for the establishment many are left behind. In coming time multi-level marketing will become the prime source of establishing a business and in the next 10 to 15 years the number will increase. For now every minute in India someone is looking for his or her own business. This multi-level marketing has emerged as a global approach to get relief from all sorts of crisis and improving financial standards.

Processes for setting up a multi level marketing company in India

➢ The first step is to decide about the products precisely. Product will be the source to generate productivity. Product can be either physical or virtual. A good product and a well-planned strategy is important. Mostly known useful MLM plans are Uni-Level Plan and Generation Plan, whereas some plans which should be ignored and should not be followed are Bucket Help Plan, Donation Plan, Binary Plan, Matrix Plan Board Plan Stair Step Plan

➢ Next step is to get marked the company as a Pvt. Ltd organization of India. Directors of the company have few risk measures in setting up a multi level marketing company so it is considered beneficial to get registered as a trademark venture. Other corporation documents in which registering can help in the company’s legal registration are CIN Number/Registration No, PAN Number, TAN Number, CST/RST (TIN) No., Labour license, Bank A/c No.

➢ Indian Direct Selling Association (IDSA) is a non-government body and it has been founded by Amway India to manage the entire Direct Selling Companies in India. Joining an MLM company with IDSA will be helpful regarding any kind of problems and queries as the prime focus of IDSA is to put a break on wrong and illegal companies.

➢ Hire a legal advisor and an accountant to work on the rules and guideline required for the company in India. Make sure to have a legal assistance while preparing legal outlets including Terms and Conditions, Privacy Policy, Spam Policy, Product Return Policy, Shipping Policy, after sale service policy and Termination Policy

➢ Pre-launch offers, monthly and permanent offers are also helpful to make a good appearance in the market.

➢ It is also beneficial to generate exclusive website content and details supporting the company.

Some of the Top MLM Companies In India are:
- Oriflame
- Herbalife
- Avon
- Tupperware
- Amway
- Modicare
- Hindustan Unilever
- RCM
Reasons of an MLM venture facing adverse effect

The cold, hard truth is almost half of the people in Multi-Level Marketing fail. Most of these people end up spending a lot more money than they earn in their lifetime in MLM in a very less time. The question aroused by such fact is how and what makes such losses in Multi-Level Marketing. (more…)
Advantages of Multi-Level Marketing

For a very long time, many people have been holding and grabbing MLM network marketing business prototype. The reason for that is providing satisfactory results to the investors. Investors have used the opportunity of expanding and globalizing their MLM business. MLM business model has created numerous millionaires based on the principle of leverage. Choosing a right team for the business prospect in MLM has always been effective.

(more…)
Does all MLM Companies are fraud

I meet with so many people every month & I have found some of them are totally close minded & think as if all MLM Companies are fraud. It’s it really like that? Let’s first understand the definition of Fraud.

What is a Fraud

“Fraud is intentional deception made for personal gain”

There are some people who start the MLM Companies with wrong intentions, at the beginning their motive is not legal or ethical or morally right. Whatever we can term it like. And that’s very unfortunate thing that such MLM Companies are able to open up. MLM Companies starting with such intension are definitely there to cheat people, to do fraud. Definitely there are fraud mlm companies in the market.

But still there are some MLM Companies which get started with the right intension to serve the society. Today there are many MLM Companies which are running successfully in the market from many years, doing the business successfully & having Millions & Billions of Dollars turnover.

Concern with MLM Companies & MLM business in India

Yes, there is more concern with MLM Companies in the Indian market because as of now there are no strict rules & regulations for MLM business in India. There is no governing body which can control such activities, that’s why many people open the businesses of investment plan, money rotation & all kind of such crap in the market & many innocent people get affected by it sooner or later. But soon it’s expected that Indian Government will come up with regulations to monitor MLM industry in India.

By the way this happens with any new industry. When insurance industry got started in India there were lot of issues, but once the regulatory body was formed things got easy & today insurance industry is contributing in the big way to the Indian economy.

What’s the solution for people of India?

Obviously all MLM Companies by no means are fraud!! What I suggest to people who raise up such concern to me is – they must avoid getting associated with MLM Company that has origin from India, other any other country where mlm laws are not there. Reason being as discussed earlier we don’t have any laws to monitor MLM industry in India, as a result in many cases it comes out to be fraud. Even if the company runs for sometime intentions of people can change later on as there is no watchdog to punish.

So it’s always better to get associated with an USA / European / some other established company which is already running from some time. Please don’t only join on blind trust of your near & dear one because sometimes your near & dear ones get into wrong company unknowingly. And once our close one joins any MLM company & asks us to do same, without understanding the concept we join it.

Read Here: How to Choose Best MLM Company?

Who is associate with MLM Companies & MLM Business

You might have seen some good educated people, people working at good positions, having good business joining the mlm companies, but you might not be aware some of the top shots people in this world are also associated with MLM Companies & MLM Business. Some of them are:

Warren Buffett: owns 7 mlm companies

Bill Clinton: endorses this industry ..

http://youtu.be/4mApHtwa6xs

Richard Branson: former owner of Vie at Home

Donald Trump: owns MLM company

Robery Kiyosaki: strongly recommends MLM business to a common person

I will not elaborate who are the above personalities you can just Google it & you will come to know the heavy weights involved in mlm.

By the way these people know more about life & money, than YOU & ME! Hence when they have involved themselves in MLM business, it’s better one should increase his knowledge & try to understand this powerful industry with an open mind.

To Conclude

Obviously all MLM companies are not fraud else such people would have never associated themselves with this industry & even there are regulatory bodies in the developed nations to monitors operations of mlm industry. It’s just a new industry that’s getting started & is there from few years. Some patience is required sooner or later rules & regulations will be there. Till the time you can definitely do the mlm business with any good mlm company.

By the way this article was not to convince about mlm business, etc. if you understand the power of this industry get involved in mlm business with any good mlm company to change your life, else you are already living an ordinary life!!
MLM Ponzi schemes on Internet to face crackdown:Corporate Affairs Ministry

The government is now actually determined to crack down on fraudulent MLM companies that have ripped off hundreds of investors in India by blocking their internet sites and tracking their online bank transactions. (more…)
Ways to prosper at Multi level marketing Online

Multi Level Marketing Online

Lots of people presume mlm is something that has to be done in individual. Well, although there absolutely are a lot of MLM possibilities that require you to get out there, network, develop your individual army and make sales, there are also internet options readily available too. Of course, this is ideal for an individual that is not comfortable communicating with strangers in individual on a day-to-day basis. It is even perfect for somebody wishing to get into multi level marketing on a part time basis while still working their normal job. So, just how do you prosper?

(more…)
The modern wellness revolution in India

Wellness Revolution

There was a time when when physical fitness and health supplements were required for every sportsmen to boost their endurance and energy.

With growing awareness about health and fitness, supplements on nutrition and wellness are now at par with cosmetics and personal care products.

The Indian Direct Selling Association (IDSA) says Wellness has emerged to be a top product class in Multi-level Marketing adding to the strongest share of revenues leaving behind cosmetics and personal care products. (more…)
Serious Fraud Investigation Office Suggests body to control fake chit funds along with MLM Companies

Chit Funds

NEW DELHI: The Serious Fraud Investigation Office (SFIO) has strongly suggested establishing a body within the Central government to determine scams via chit funds and multi-level marketing business.

A document put together by SFIO suggests the Centre should really keep an eye on virtually all multi-level marketing (MLM) plans via the administration directorate as well as the intelligence agency to assist supervise guidelines of laws and regulations throughout states.

“Bringing the scenarios within the Centre’s ambit is actually important as many schemes being operate with the direct or indirect assistance of local authorities is not unheard of,” an SFIO official said on condition of anonymity.

Nevertheless, he stated the actual execution need to be the states’ subject, as Multilevel marketing programs tend to be primarily established in rural locations as well as their models differ from area to area.

The SFIO report states virtually all networking companies, under which the majority of MLMs operate should be registered with the central authority in order to help make it quick to recognize firms operating this kind of plans.

“The problem is actually that of signalling. As soon as the states alongside with the Centre begin taking more substantial actions, the acceptance of this kind of schemes will certainly tumble,” said another official.

The ministry of corporate affairs is presently working hard along with the Reserve Bank of India to enhance the regulations governing Network marketing business organizations.

The SFIO is also probing Gold Quest, a Tamil Nadu-based firm operating a chit fund worth Rs 1,000 crore.

Chit Funds