05/03/2024
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What is Network Marketing ?

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Contents

What is Network Marketing ? / Introduction

Network Marketing is a completely proven & powerful industry. It’s also known as Multi-Level Marketing Industry. Many people are familiar with network marketing or multi-level marketing. At least many people are familiar with these terms. Many also call it a Direct Selling Business. Let’s discuss the benefits & facts of network marketing & what kind of people can be more successful from here. But all Networking Marketing Companies are not good. Many MLM companies are there to cheat their members by showing them utopian & unrealistic dreams to become a millionaire at lightning speed. But it’s not a cakewalk. It takes discipline, dedication, hard work & loads of patience.

What is Network Marketing ? / Ideas about the MLM industry

Network Marketing Model
Network Marketing Model

The Multi-Level Marketing Industry is not bad. Some bad people & some bad companies have given this industry a bad notion. Therefore, those of you who strongly support the MLM industry or are associated with it have to face strong negativity. Who in this case says negative things ?. Few laymen standing at the corner of the neighborhood, who could not do anything in their life. Some of our closest friends who’ve failed here. Your neighbors who don’t want to see you succeed. They’re skeptical about Network Marketing.

Working in MLM has its benefits –

  1. In this industry, you can write your paycheck.
  2. Your income will be protected if you’re diligent.
  3. It’s possible to get big returns even with very little investment. It can be a lifelong passive income.
  4. Entrepreneurial mentality. People have the strength of freedom of time. So you can get time freedom from this industry.
  5. Your business will not stop at 1 place. You can travel anywhere to do this business in the open market.
  6. It’s an industry where you can connect with many friends, many relationships, new families & new relationships.
  7. You’ll get lots of respect here if you do this business in an ethical & correct way.
  8. If you work hard, then the income will continue. There’ll be so many recurring revenue models. If something happens to you then also your income will be safe. Automatic money will keep coming. It can protect the next generation of yours. It’s passive income.
  9. Your age, gender, caste, religion & education are not very important in this business. There is no need to worry about these things. To be successful in this business, you must be extremely optimistic.

What is Network Marketing or Multi-Level Marketing ?. Are they the same ?

Yes, these 2 are identical words & are the same. MLM is all about leadership. This business creates a strong downline. MLM has a great relationship with the upline. MLM continues to educate so that you can sell your product by prospecting & motivating (follow-up) your product with a large community & with your strong downline. But, you can only do this when your psychophysical nature matches. There are 4 types of people – Action Man, People Man, Process Man & Idea Man.

Action Man

Action Men are ambitious. They work on aspiration & they don’t procrastinate. They believe in doing it now. Their speed is too high. They’re goal-oriented people. Action Man is very effective in the MLM industry.

Process Man

They’re very system-based & slightly process-based. They’re realistic. Process Man doesn’t wander in the dream world. They need data & numbers. They need analysis. Process Man works only on information. They’re not very emotional & like to walk step by step.

People’s Man

They’ve to build a very good relationship. They’re a little emotional. People Man believe in cooperation, coordination, unification, team bonding, team spirit & happiness. They built relationships very well.

Idea Man

Idea Man
Idea Man

They come up with some new ideas. They’re creative. Idea Man never gets stuck. They talk about new possibilities & create new solutions.

How to succeed in Network Marketing ?

You need to know how to lead & you should’ve got the convincing power. You should be able to build a strong & active downline. MLM business is all about leadership. Always have patience & never give up. Network marketing now employs 40% of Americans. However, only 0.6% of Indians work in this field. It’s only because of a lack of knowledge & mindset. This’s not to say that you can just add 2 by 2 & then you’ll succeed in network marketing. Before entering this industry, you’ve to work hard & tremendously & you need to develop immense knowledge about the company’s product. You need to be very optimistic & have excellent communication skills. Only then you’ll be successful.

How to succeed in Network Marketing ? / Role of an Upline

What is Network Marketing ? / Role of an Upline
What is Network Marketing ? / Role of an Upline

Upline is a very important factor for your success Your upline must be a people’s man & should be very knowledgable & trustworthy. You must respect upline very much. Learn from your upline. It’s important to respect the upline to be successful. As well as bringing financial freedom to your life, you can do the same for your friends. Transform your thinking to change your life.

Many people are there who hate Network Marketing

But many people don’t like this business model. The majority of those who oppose it are not directly involved in the business. However, some experiences or hearsay have turned them off. Those who do the business are right from their side & those who are averse are probably not wrong from their point of view. I’ve tried to find out the main reasons for this like or dislike through this post. I’ll tell everyone for or against this post read the whole thing then you decide which is right & which is wrong.

There are some reasons why many people do not like network marketing –

  1. The type of business is brand new in many countries. Initially, accepting something new takes time. It’s a natural human instinct. The same happened in the case of eCommerce Business. But see how a multi-billion dollar company Amazon is.
  2. Many unscrupulous businessmen have started or are still trying to deceive people by launching various scams with a lack of proper knowledge of the people in the beginning. Many people have been tricked in the past. It’s all because of some scam MLM Companies.
  3. Some people may not be successful in this business & so they don’t want others to be successful. Although the number of such people is not very high. They also frequently speak adversely about the company & the business. Therefore it affects people negatively.
  4. Most people are lazy, indisciplined & procrastinate their goals in life. They don’t have any goals in life & they don’t have any ambitions either. These type of people hates Network Marketing because it takes a lot of hard work to achieve success in Network Marketing & these people are not willing to work hard. So they’re jealous of others who achieve success in Network Marketing & they bad mouth this industry.

Network Marketing is just another model of business but it’s not conventional

Essentially, network marketing is just a model. We’ve been accustomed to seeing the traditional business model for a long time. In this model, the product travels from the manufacturer to the super stockist, stockist, wholesaler, distributor & retailer. We’re the customers.

There are also different models such as the 2nd model is Departmental Stores. Big Bazaar, Pantaloons, Reliance Stores, & others, for example, where the manufacturer’s products are delivered directly to the stores. The 3rd model is eCommerce such as Amazon, Flipkart, Snapdeal, etc.

Another such model is Network Marketing or MLM or Direct Selling, where the company delivers products directly to the customers without any middlemen. There’s no advertisement for their products. Word of mouth is the only source of their publicity.

Does the Government recognize the Network Marketing concept as a legitimate business ?

The government recognizes network marketing as a legitimate company. In India, in 2016 the central government enacted a law specifying what a network business is & which companies can do this business. If a company is recognized by the government & its products are of high quality then you won’t have to worry about its authenticity.

Starting this business requires minimum capital, no office, no employees & almost no monthly expenses. Network marketers claim that no other business offers as many advantages as theirs. While doing this business, you can harness your personal development. Companies provide training on communication skills, Leadership Capacity Building, Team Management, etc which are mostly free.

The World’s prominent people have backed this venture

Not only have the world’s most prominent people backed this venture, but they have also strongly recommended everyone to do likewise. People like Bill Gates, Warren Buffet, Tony Robbins, Jim Rohn & Brian Tracy say that this business model is very good & timely. Robert T Kiyosaki, a world-renowned financial education guru & author of the book Rich Dad, Poor Dad, has authored an entire book about network marketing called The Business of the 21st Century. None of them are network marketers, but they recognize the value of the industry & have shown their support for it.

Don’t be influenced by anyone else’s words. Make a decision based on your experience & wisdom. Network Marketing business is going to go further than traditional business & franchise business. This is a kind of home business, where you can work from home. Like a full-time job here, there’s no need to go to the office for 9 to 8 work purposes. It is entirely up to you whether you sit at home or go out to work. This type of network marketing work is primarily viewed as a part-time job. Many people make a lot of money by doing this business.

On the business side, the topic of network marketing has become a very common term today. Pyramid selling, multi-level marketing (MLM), and referral marketing are all terms used to describe network marketing. As a result of this type of marketing, businesses can quickly promote & sell their businesses & products in less time. Network marketing is a business model based on sales between individuals by a small number of “independent agents”. Most of the time, this work is done from home. The representatives of the Companies sell the company’s products in the market.

It’s a Team Effort

Every person who joins the workforce sells the company’s products & recruits others to this business model will be paid a commission on the company’s behalf. This is precisely what network marketing is all about. Everyone who works in this business is connected. Furthermore, the advancement of any individual working will be contingent on everyone’s participation. People involved in network marketing will never be successful on their own. It’s a team effort. Network marketing can be visualized as a pyramid. It’s also known as Pyramid marketing.

A significant number of people offer the same company’s items here. When you sell a product, you & everyone above you will be paid a commission. If people who join through you sell a product, you’ll be paid a commission alongside them. It’s a chain system. That’s why, to make more money through this business, you need to have a strong downline. In this way, the people below you will sell the products, & you’ll continue to earn money as a result of those sales.

The sky is the limit here

Your customer may become a business partner in the future if you’re in the network marketing business. But only if they want to be a part of this venture. If you can promote & market any product or service to a large number of people in a very short time, then the business of network marketing can be profitable for you. The most important benefit of this business is that you can earn money both part-time & full-time & there’s no limit to how much money you can earn.

This business is a very lucrative way to earn money from home. If you want to do it as a part-time business, you can earn it here by working only 2 to 3 hours. You’ll also get a cut of the sales made by those who work for you. You can add countless people below you. You’ll have a lot of experience in product selling and marketing. If you can do this business along with your job, then there will be a lot of extra income. In this business, you can be your boss.

Anyone, irrespective of gender & age can do this work. If you think you can sell the product in the market & add other people to the business, then you can try network marketing.

Word Of Mouth

What is Network Marketing ? / Word Of Mouth
What is Network Marketing ? / Word Of Mouth

Initially, you’ll have difficulty selling products through social marketing or adding new people here. But with experience & proper guidance, this job will become much easier for you. After joining a good, “network marketing company” you need to do a lot of marketing or advertisement of your products & business. This business succeeds only with the word of mouth. You need to reach out to your circles & new people as well. So that more people can easily know about your business model & products.

You can create your website or continue to promote your business & products through social media. By creating a YouTube channel, you can easily promote your business online through video marketing. With the help of digital marketing, it’s possible to promote business through the internet at high speed. The more people you can engage within this network marketing business, the more profit & income you’ll have.

Fraud Network Marketing Companies

Fraud Network Marketing Companies
Beware Of Fraud Network Marketing Companies

Beware of Scam Network Companies. Before joining any Network Company, you must gather knowledge about that company & its last 5 year’s growth. Some companies can cheat you, make money from you & give you nothing. This wastes a lot of your time & will not be of any benefit. Before joining any network marketing company, you should know all about that company. Before joining a network marketing company, check these things. It’s very important to check the official website & Head Office of the company. Find out what kind of product or service the company is selling. The product or service must be unique & in demand. Find out how long the network marketing company you are going to associate with has been working in the market.

Try to find out the current financial status of the company. Because, if the financial condition of the company is not good, there’ll be an opportunity to close at any time. The government must recognize the company. Before joining, one should check to see if the government has issued a license. It’s important to see if you know the product or service that the company is working on.

It’s a booming business

If you want to start a business but you do not have enough money to do business, then you can start this kind of network marketing business with a very little amount of money or no money at all. A simple registration fee may be required in some cases. It varies from 1 Company to another. The Network Marketing business is booming. If you start working from the heart, then success in this field is not a big deal.

Amway India

Amway is a multi-level marketing (MLM) corporation based in the United States. The company sells health, beauty & home care products. Jay Van Andel & Richard DeVos formed the company in 1959. Ada, Michigan is the location of the company. Amway India, a reputed network marketing organization, has experienced a huge setback. The ED (Directorate Of Enforcement) has seized assets worth Rs 757.77 crore from Amway India. The Money Laundering investigation by the ED revealed that Amway was selling Pyramid Fraud under the guise of direct selling multi-level marketing network. The prices of most of the products offered by the company are exorbitant & higher than the popular products of reputed manufacturers available in the open market.

The Company has been accused of running a Pyramid / Ponzi scheme. The assets seized include company land, factory, plants & machinery, vehicles, bank accounts & FDs in Dindigul district of Tamil Nadu. ED has seized immovable & movable property of Amway worth Rs 411.83 crore. A total of Rs 345.94 crore in bank balances from 36 different accounts has been temporarily attached.

Pyramid Fraud is running Amway

Pyramid / Ponzi scheme
Pyramid / Ponzi scheme

The Money Laundering investigation by the ED revealed that Amway was selling Pyramid Fraud under the guise of direct selling multi-level marketing network. The prices of most of the products offered by the company are higher than the popular products of reputed manufacturers available in the open market.

Without knowing the truth, the average person is persuaded to join the company and purchase the product at exorbitant prices, thereby wasting his hard-earned money. As a result of their disillusionment with their uplines, new members are purchasing products not to use but to profit from. The reality is that the commission received by the old members contributes a lot to the rise in prices of products.

The company is paying a huge commission

The company has collected Rs. 27562 crore from its business from the year 2002-03 to 2021-22. The company has paid a commission of Rs 7,588 crore to its members and distributors in India & the US. The company’s whole focus is on advertising how members can get wealthy by joining more people as members. The company has no focus on products. The products are used to disguise this MLM pyramid fraud as a direct sales company.

Dividends & royalties total the same amount

Amway has brought in Rs 21.39 crore as share capital in India from FY 1996-97 to FY 2020-21. Meanwhile, the company has paid Rs 2,859.10 crore to its investors & parent entities in the name of dividends, royalties & other payments.

Pretends to have a grand lifestyle

Brit Worldwide India Private Limited & Network TwentyOne Private Limited have also played a major role in promoting Amway’s pyramid scheme by organizing seminars for new members in the chain system. The promoters are organizing mega conferences & showing off their lavish lifestyle & using social media to lure gullible investors.

What Amway India says about it

Amway India’s statement on the actions taken by the emergency department said –

“The actions taken by the authorities are related to the 2011 investigation & since then we’ve been cooperating with the department. We’ve been sharing all information since 2011. We’ll cooperate with the government officials & lawyers to find a fair, legal & logical solution to the problem at hand. The Consumer Protection (Direct Sales) Act 2021 has recently included direct sales in its regulations. This has provided the industry with the necessary legal & regulatory clarity, yet on behalf of the company. We reiterate our commitment to comply with the words & opinions of all laws & regulations. Amway has a rich history of proactively advocating the highest standards of integrity, integrity, corporate governance & consumer protection for the benefit of all consumers. We don’t want to comment anymore because the matter is under investigation”.

QNet is another Network Marketing Company that may come under the scanner of the Directorate Of Enforcement, just like Amway India.

What is Network Marketing ? / Conclusion

To succeed in any Network Marketing Company the products hold the key. You can be successful for a time being if you’ve got a lot of downlines. But, if the product of the Company is not great then that success that you’re enjoying right now will go into oblivion in a wink of an eye. It’ll be a short-lived success. The downlines will only stay & will bring more downlines if the products of the Company are great & beneficial for the common people. The products shouldn’t be all about luxurious & fashionable items. Also, the prices shouldn’t be exorbitant & should be at par with the prices of those similar products available in the common market. The quality of the products should be top-class.

If any MLM Company diligently cares about upgrading the quality of their products then the members of those companies will surely be successful. Otherwise getting success in any MLM Company will be a far-fetched dream & will never transform into reality. So, everyone should double-check the history of any MLM Companies before joining. Some notable MLM Companies are – “Market America, Avon, Herbalife, Nu Skin, Tupperware, Vestige” etc. But if any Network Marketing companies don’t focus on the quality & price of their products & only target to increase their members by giving them unrealistic dreams to become rich overnight then those companies will also come under the radar of any competent authorities of their respective countries.

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