Wednesday, 14 September 2011

Network Marketing trends in India

The idea of Network Marketing has mushroomed as a universal concept in the last few years. With brands like Amway, Herbalife, Oriflame, and Tupperware having become household names, people are
beginning to recognize the benefits and advantages of this unique business model. But is Network
Marketing or Direct Selling as it is also called, all about ‘Get rich quick’ with minimal effort? Or is it a
well-positioned scam where, whether you get rich or not, you sure lose your closest friends and
relationships? The answers lie in a clear understanding of what this concept is all about.
Multi-Level Marketing or Network Marketing or Direct Selling is exactly what it claims to be - referring
products or services directly to consumers within your network. It involves building a network of people
who join you in business and who in turn expand their network, thereby increasing your outreach. For
each referral made by the network, the preceding link or ‘upline’ as these individuals are called in
Network Marketing terms, gets a certain percentage of commission.
Unlike conventional marketing, the main criterion in Network Marketing is that you need to first be
convinced of the product/service you are referring. Meaning, you need to be a user of the product or
service that you would eventually be referring within your network. Like any other business model, to be
successful in Network Marketing, you will need to possess the following:
• Ability to put in lots of hard work, in fact twice as much as in a regular job or business
• Willingness to learn new and diversified skills
• Ability to discipline your disappointments
• Lots of patience
• Willingness to dedicate a few hours every day to your business
• Ability to network with like-minded people who can help expand your business
• Due diligence to keep a watch on your industry and be abreast of the latest happenings and
current/future trends
• Skills in developing connections that can eventually help grow/expand your business
One of the main questions arising in anyone’s mind when talking about the Network Marketing industry
is ‘Is this business model really workable, or is it just a sham?’ While having this doubt is totally justified,
it is also a known fact that the direct selling industry is fast growing and has the distinction of creating
the maximum millionaires every year. Of course, there are a few do’s and don’ts that you need to keep
in mind before venturing into a Network Marketing business:
• Before you sign up with any Network Marketing company, make sure you check the credentials
of the company, the product/services on offer, current company network strength, and whether 
the company has a physical presence in India.
• In particular, make sure that the management team on the Board of Directors of the company 
are accessible either through e-mail or phone and verify their credentials and background.
• Check if the product/service that you are planning to market and refer has a certain appeal in 
the market. There is no point venturing into something that has no market.
• Ensure that your direct upline (the person who sponsored you into the business) is accessible 24X7 and answers all your questions satisfactorily. A good upline provides
adequate training to his/her partners so you need to choose your upline wisely.
If you keep these few pointers in mind, Network Marketing can offer various benefits like:
• Lower initial cost of setting up your business
• Excellent training and product/service knowledge from industry experts
• Opportunity to earn additional/residual income with a greater chance to move into a full-time
earned income model
• Flexibility to work at your own pace and time
• Choice of retiring whenever you want
• Excellent travel opportunities
• Opportunity to meet, associate and interact with positive and like-minded individuals
Network Marketing is governed by the World Federation of Direct Sales Association (WFDSA), a body
that regulates the way Network Marketing companies conduct their businesses. WFDSA lays down
specific guidelines for all Network Marketing businesses worldwide. While the traditional Network
Marketing business model had its own pitfalls, the scenario is changing rapidly today thanks to the
proliferation of the Internet and the presence of a structured regulatory body. Many people are
venturing into their own home-based direct selling businesses on a full-time basis, as an effective
alternative to conventional modes of employment.
The emergence of Network Marketing as a lucrative business model has found its way into academics
too; several universities today offer specialized courses in Multi-Level Marketing. However, the real
In an interesting survey on Network Marketing trends in India conducted by Be A Networker (BeAN), it
has been found that there is a growing acceptance of Network Marketing as a mainstream profession in
India, with a wider outreach in the metros. Excellent quality products coupled with friendly and
Marketing approach interesting are factors like freedom to work at your own time and pace and
additional residual income, besides the opportunity to be your own boss and this drives several people
to venture into home-based businesses that promise steady and gradual success for ordinary people.
Interestingly, our survey revealed that women seem to make better network marketers than men.

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