Future of Network Marketing in India 2023 to 2030

Is Network marketing is the future of business in the 21st century?

In this article, we will discuss various points to understand the scope of Network Marketing in India

Money empowers individuals, for the people who are born and made leaders choose to run a business.

But for others, jobs seem like the best option.

Networking marketing suits both of these categories. It will quench your thirst for being the boss and also for a simple part-time or full-time job.

Table of Contents

What is Network Marketing?

Networking marketing or Multilevel marketing is the business, where the company sells its products directly to the customer.

If you join their company as a member, you will be acting as a medium to get the product from the company to the customer.

The profit lies in the revenue which is created when you sell the product to a customer other than the member of the company.

The difference between the selling price and purchasing price will be your revenue.

When you are growing up in your status from member to other statuses, there will be more revenues and bonuses, increasing your profits.

Also Read: Importance of Social Media in Network Marketing

In which Sectors Does Network Marketing Flourish?

1. Health and Wellness
Industries dealing with health and wellness products prefer mostly direct sales and network marketing.

As day-by-day, people are getting more health-conscious and try to have a younger look, the health and wellness-related products are becoming popular and exhibit niche among the masses.

Health and wellness products consist of ingredients concerning natural herbs and thus, are called alternative medicines. They have a wider appeal to the public.

2. Cosmetic Products
Looking good has been a dream of all. Industries dealing with makeup and personal care products adopt a network marketing policy for getting popularity and building up a brand.

This is the age of beauty influencers and lifestyle vloggers who love to recommend a suitable product to their followers and earn a commission in return.

Types of Network Marketing

There are three types of network marketing models;

1. Single-Tier Network Marketing
This is another version of affiliate marketing. It is a simple business strategy where the commission is directly earned by the affiliate when he/she sells a product through his/her reference.

Here, the person isn’t supposed to recruit anyone beneath him/her to work.

2. Biennial System or Two-Tier Network Marketing
Here, the selling agent not only sells a product or service but also recruits selling agents under him/her to sell the same up to two layers.

In this segment, the selling agent is paid for direct sales by him/her and indirect sales through the recruited agents.

3. Multi-Tier Network Marketing
This type encompasses a marketing strategy that runs multiple layers deep. A selling agent can recruit an unlimited number of agents to work under him and thereby, help create multiple numbers of down layers.

As a result, the salesperson at the top gets some commission on sales made by the salesperson present at the bottom.

What is the Scope of Network Marketing?

Network marketing is a group activity. It is the only business where both time and money freedom can be achieved. A selling agent is his boss and sets his own time and strategy to get successful.

But, joining and getting successful in network marketing depends on certain aspects.

Firstly, to be a successful marketer, choosing the right company is important. Secondly, the brand name of the company speaks a lot.

Third, going through the quality of products and services is very essential like the safety of products and their prices.

Finally, the category of product or service, intended market to expand the business, time one can spare, and future goals like getting rich or making some extra money are a few important things to become a successful network marketer.

Advantages of Network Marketing

1. Cut Down Marketing and Promotion Costs

The traditional marketing methods included newspapers, television advertisements, or billboards.

Let’s move to some more advanced marketing tactics that included Facebook or Google ads, promotion through blogs, and Youtube videos.

But network marketing is a revolutionary method that turns individuals into promotional assets.

In other words, a company’s customers are its advocates who promote products to a bunch of people and earn a handsome amount of money in return.

This is a comparatively cheaper mode of marketing. Plus, it’s a win-win situation for all.

2. Rise of Solopreneurs

Solopreneurs are entrepreneurs who don’t have a team and handle everything by themselves.

Networking marketing has given many people to live their dream of becoming an entrepreneur even if they belong to some other profession, initially.

3. Generating extra income

Another bright opportunity that lies within the ocean of network marketing is the generation of extra income streams.

People can work part-time or full-time on this model as per their choice. Who doesn’t love to make extra bucks? This is the reason why network marketing emerged as a highly successful framework.

4. No degree required

Just anyone can get started with network marketing irrespective of gender, religion, age, and educational qualification.

If you are unable to land up to six figures salary due to your lower qualifications, you still have a chance to earn six figures a month by learning the strategies of network marketing.

You just need to have a good network of friends and good communication skills to convince people. This is a great thing indeed!

Disadvantages of Network Marketing

1. Risk of fraud

Some of the network marketing companies turn out to be fraudulent. The products they sell are also not reliable.

They simply exploit their customers without giving them any profit share. You must be beware of such scams.

Always visit the company’s website and read about their reviews on google. Know the history and reputation before registering in any such scheme.

2. Lack of Professionalism

Individuals who are involved in promoting products of companies are not much skilled. They might end up establishing a bad image of the company in front of other customers.

In the case of network marketing, a single unsatisfied customer leads to losing numerous other customers.

3. Lack of trust

Lack of trust is a common drawback of this marketing version. People haven’t heard or seen the company’s name on any social media platform, only individuals are seen promoting products. Therefore, they find it hard to trust the products. Lack of awareness hinders frictionless sales.

MLM in India

MLM is a budding industry in India that is blooming day by day.

There is an increase in the number of people who are preferring to be independent and have their own source of money.

Since Network marketing allows people to work in their free time and at their convenience, there is a growing number of people who are joining these companies.

For some, it is part-time, and once they found it useful, they will be turning into a full-time employee.

This is also increasing company’s membership count as the full-time employees are encouraging their friends to join.

Also Read: Top 10 Network Marketing companies in India

Overall it seems like sunrise and getting bright in their profit figure and spreading across India in all regions.

Members who are successful in their business are becoming heads of the regions maintaining their own crew of members.

These are the members who are at the top of the pyramid earning high income being an agent of the MLM business.

Bursting the Myths about the future of Network marketing in India

For every coin there are two sides, there is a growing number of people who are choosing to join, and also on the other side, there are people who are skeptical about the MLMs.

Also Read: Is Network Marketing Legal in India?

We cannot deny the fact that there are fraudulent networking companies that are ruining the goodwill of legitimate companies.

But what to join and what to believe will depend on the individual.

Secondly many believe that they need to go door-to-door selling programs in order to gain profits.

This is not true, network marketing depends on the contact list you have, the more contact you have the more the chances that you can turn them into your customers.

You may have to visit your friend and their friend to inform them about the products and why to buy them.

This approach is mandatory for any business as you have the responsibility to get yourself known to the crowd. But you may not do it forever.

Once you are established and people started to know about your MLM business, they will place their orders with you and then you can be in contact with them over the phone.

Also Read: How Do I get Success in Network Marketing?

Many MLM members will not be involved in door-to-door selling. As many of them will be concentrating on their friends and relatives and to turn them into customers.

It is much like a friendly conversation rather than a product demo.

Future of Networking Marketing in India

If you’re considering joining a network marketing companies’ business, you can go for it without any hesitation.

The biggest and first requirement you need to have is the interest to talk to people and be able to explain in a convincing way. There is no need for higher education and certificates.

It is a promising career that even the young generation opts for. There is an increased number of youths who are choosing it as their part-time.

Along with housewives who are empowered with network marketing, job holders also choose it as their leisure time job.

There are many companies offering attractive membership plans which differ from one to another.

And you have the chance and choice to choose according to what is offered to you.

Enquiring from the existing members on what will it be to work for the company, will help you to choose the best.

Don’t forget to consider the company’s reputation and the product they are marketing.

Consider, for example, if you have a greater number of youths who are unmarried and working, then you cannot sell them home needs which suit best for the housewives.

Also Read: Top 10 Network Marketing Companies in India

Hence you have to go for the food supplements MLM. If you are married and have more of such contacts, then choosing either food supplements or home needs will give you more sales figures.

But whatever your age group may be and the nature of your contact list, once you decide to join the network marketing business, you need to increase your contact base from one member to their relatives and friends.

Since people are getting more positive about MLM products, and their benefits, it will be a good choice to brand yourself as a network marketing agent. You can also check various companies’ business plans here.

Remember that to be successful in your network marketing, the secret lies in your ability to be energetic and to increase your customer base every month.

The more the customer the more the bonus and revenue.

Also Read: Can Multi-Level Marketing Expand into Services?

The legality of network marketing in India

It is completely legal to join and involve in network marketing in India.

But we must remember that we should only be confined to selling the products and sharing the profit generated by them.

Some companies charge a nominal fee for membership and for others it is completely free.

But if in case the new member has to pay the fee, they must only be accountable and transact with the company directly but not with the members.

Taking money from new members or making alluring offers to join them or to sell the products beyond the company quoted price will be illegal.

Also Read: How Do I get Success in Network Marketing?

But if you are interested in making some good profit by working at your comfort, it is altogether the best choice to choose.

Let’s dig deep into the possible scope of network marketing in India.

Scope of Network Marketing in India

It is legal to operate network marketing in India. The problem comes from the way you operate.

There must only be direct selling from the members to the buyer.

They should not charge more than what is stated in the MRP.

Members must not charge money for membership more than what is stated in the company guidelines.

Some of the companies even offer free membership.

Carefully observe if the company is involved in an illegal money scheme where their main concentration is on collecting money but not on selling the product.

Most of the famous network marketing companies are successful in achieving a good amount of membership and sales.

There is a good scope in these companies to grow in a career.

To be frank network marketing works well in Asian countries like India as we have a closed community where we treat even strangers as our relatives.

It is easy for us to form relations and be referred to by our friends.

Though there are no noted problems from the Indian government to allow people to be involved in the network marketing business, there is always an open door for the legislation to plunge into action when they sense something fishy.

It is always advisable to make a reasonable search online on fraud companies before you decide to join with them.

There is no support from the government of India for individual money schemes run by the companies in the name of multi-level marketing.

Also Read: MLM Business Plan

So, if we lose our money investing in such schemes, then the probability will be that it is hard to recover what we lost.

Amway, Tupperware, and Modicare are a few of the most famous network marketing companies in India.

Members in these groups have seen growth in their careers. But it also depends on the individual skills of marketing.

Most of the chain marketing companies are private ltd and not supervised by the Indian government, there are very few companies such as Modicare who has an Indian origin.

Also Read: Top 10 Network Marketing Companies in India

What is MLM Business?

Multilevel Marketing is a business plan where the company sells its products through non-salaried employees.

The company earnings will be on product sales and the earnings of their workforce will be based on the commissions from the sales and through the Binary compensations system.

Every MLM company have their own marketing plan, but to brief it, all of them work on the same revenue plan that the income to the workforce will be generated by two channels.

One is from the commissions on the product sales, secondly from the commissions of other distributors who joined the company recently.

When you join as a new person, you will be given some guidelines from the company, as to the minimum number of products you need to buy every month.

It is important to maintain a constant percentage of purchases from the company to be called an active member.

Once you start growing your customer base, you will then have the advantage of joining new members under your sponsorship which will further increase your income from their purchases.

For anyone to start the MLM business, he/she has to join the company through the company’s website or by an existing member’s sponsorship.

Though some companies offer free registration, some may charge a nominal fee for the membership. Now, Let see some features of MLM.

This marketing plan has the main advantage of working from home at the individual’s own convenience.

There is a very small amount of risk involved in doing Multi-Level Marketing than owning or starting your own business.

The member will only have to invest a small amount to join and to start selling the products.

There is no need to maintain large piles of stock thus you don’t need to incur any operational cost.

MLM Marketing also gives the members a chance to earn high positions such as regional or sales manager after gaining a significant amount of sales figure.

This means a housewife or a person with minimum or no educational background can now call him/herself a manager.

Also Read: Top 10 Network Marketing Companies in the World

The success in MLM Business lies in your own skills, which means the ability to communicate will increase the chances of success.

There will be no Boss over you and hence you’re not answerable to anyone.

As it is direct marketing i.e. meeting the buyer face to face and explaining about the product and why they have to buy it, it is necessary that you need to develop good communication skills.

This step is important during the first few months of the business.

Once you start to have the customer base you can then choose to be in touch with them over the phone.

Since your buyers are now confident in you, they will feel comfortable choosing products online and placing orders with you.

You now know What is MLM business, but the prerequisite for you to enter into it is to have contacts that you can turn into buyers.

The more contact base you have, the more the possibilities to gain more profits.

Also remembers to check the background of the company and to trust the companies which are well established and are not involved in Ponzi Scheme.

Check whether the company is legally operated in India with the compliance of the law or not. By taking these minimum precautions, you can be successful in the MLM business.

How to Start Network Marketing in India

Network marketing is one of the best options to earn extra income by having the freedom of work hours, at the same time you can make it a full-time profession as well.

That’s why It is worth investing some time to research how to start network marketing in the best way to play it safe and be profitable.

What company to choose

There are hundreds of multi-level marketing companies out there which can confuse you to the extent you cannot decide what to join.

To make this step easier I would suggest you, first enquire if any of your acquaintances or relatives are into network marketing.

If yes, then it will be a cakewalk for you. Their experience and feedback will help you decide which one to join.

Another way is to find out is through online reviews about the best company to work for. I personally believe that all legitimate companies will offer one or another type of benefit.

They may differ in the way they work. Mostly the benefits are about the commission, discounts, free gifts, etc.

How to know the legitimacy of the company

It is a good and important question to ask. Firstly, make a list of companies you are considering joining.

Then enquire about the company online in the form of reviews on Quora etc. also visit the company’s website and go through their marketing plan thoroughly.

If the company is legitimate, its main concentration will be on selling the products but not on raising money.

If anywhere it says that you need to join new members in order to have more commission, then it can be most likely a Ponzi scheme.

This means a fraud company alluring people for earning money.

But remember even legitimate network marketing companies need their members to join new members under them.

But it will all be a part of forming a marketing team to sell more products. And the membership fee will be minimum to nothing.

And your main commission will be based on the number of products you sell. This is the main difference between fraud and legitimate.

Beginning the network marketing

Once you cross this step and join one of the best companies, now your real job starts. As a beginner, you need to understand the marketing plan for the new company.

Their product selling, discount, and percentage of commission, rules, and regulations to avoid legal complications, etc. will be a part of this.

At the start, you will have difficulty with making more sales. Try to form new relations, friends, and contacts.

Let them know that you selling XYZ companies’ products. ask your friends to tell their contacts about your marketing.

Whenever you attend a party or get together, use that opportunity to talk about your products and their benefits.

But be careful not to bore anyone. Grab any opportunity where you gently get their attention towards your products and make them buy once.

The key is to start slow and steady to win the race. Be honest in your dealings to gain buyers’ trust.

Is Network Marketing Good or Bad?

Good and bad depends on what network marketing is about.

There are hundreds of fraud Networking companies and if we fall prey to these, we will empty our wallets and possibly bankrupt.

But a genuine Network can help you create a side income. There are people who are really successful at it and made it a full-time job.

The first and foremost difference between Good and Bad Network marketing is their marketing plan. Read the plan carefully, a good network company will base their marketing on a product, whereas a fraud company base it on a money scheme rather than a product.

The bad networking companies run a Ponzi scheme, which means a money scheme where the people made a fake and alluring promise and were forced to join new members. there will be no profits, in the end, the members will eventually lose all their money.

If you are still muddling about network marketing, then I will give you an example of how to be careful about choosing between these two companies.

When you consider joining them the genuine companies may not be charging a high amount of membership fee.

Once you join, they will provide you with a starter kit that has all the rules and regulations.

Members will receive training from their sponsors or from the companies directly.

There is a company product which you have to sell directly to the customer. And from the sales, you made you will get marginal revenue.

You can also join new members under your name and it will make you a sponsor for them and doing so you will be given status and bonus.

But it is not mandatory. You may simply try to reach your product purchasing and selling targets and thus receive your share of profits.

There will be no money schemes such as paying money installments for members.

The company’s reputation and its product benefits will act as an asset for you to sell them.

But in bad or fraud networking companies all these factors will be missing.

There will be no product that the company is manufacturing and which being member you need to sell.

The company is only mindful of receiving your money. you will be promised that by joining more members you will receive more commission.

Which is obviously a fake and stupid promise hard to believe. As when there is nothing that the company sells, there is no profit that the company will make, and hence they cannot pay you any amount in the future.

Secondly whether is network marketing good or bad, depends upon your own ethics.

If you are willing to make money reasonably and realistically, then you will obviously not fall for the misleading money schemes which offer lightning profits.

But if you think to sell something in your free time then you can choose the companies manufacturing different products such as home care, food supplements, beauty care, and other products.

Are fraud MLM companies affecting the business of Right MLM Companies?

If someone sees you at a Bar along with your friend, they will straight away judge you that you are an alcoholic.

Though it could be your friend you asked you to drop him at the bar, for the people, it is impossible to see with heart and mind and they can only perceive what their eyes see.

As per the revised list of 2021, there are 537 fraud companies that are in the MLM business.

These companies are involved in money circulation schemes and collecting money from innocent people with fake promises to double it. They have misleading information and unviable plans.

But there are counterfeit currencies and cannot reduce the value of the genuine currency.

There are many MLM companies offering legitimate membership and income to the members and empowering them financially.

Members are happily working for these companies and seeing their growth, they are also encouraging their friends to join along with them.

Fraud companies created scary weather and made the legal MLM businesses incur a bad reputation, due to which aspiring candidates are unable to decide whether to join the network marketing or not.

But it will be in our hands to uncover the truth. We know their authenticity by seeing the fruit they bear.

If a frog promised to make us fly along with it, being an individual with commonsense we don’t believe in it, since the frog itself has no wings.

Fake MLM companies are similar to this, they have nothing to sell but fake promises.

They work on alluring words and money schemes which are called Ponzi schemes.

All these fraud company schemes aim at joining the new member by charging the fee.

Members are made to believe that, the greater number of people they join the more profit they get.

But remember, there is no product selling involved in it.

Whereas the genuine MLM business involves product selling and joining the new members to sell their products.

There may or may not be a joining fee. The profits will be made by the difference the member buys the product from the company and sell it to the customer, which is called marginal profit or revenue.

Though it is completely legal in India to run and to involve in MLM business, we need to be careful about what company to join.

Just like in the above example, any company making illogical promises and compelling the members to join new members for money will be for sure a fraud frog.

But let us not forget that network marketing is a booming business and we can expect a decent income by joining them. there are many people who are completely dependent upon the MLM business and settled pretty well.

Their success lies in their selection of good choices and the legal company.

So, it is true that the fraud in MLM companies affects the business of the right MLM companies, but to completely eradicate this problem, the solution is to check the legality of the company and about their membership guidelines.