Direct Selling

The Scope of Network Marketing in India

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What is Network Marketing?

For those who are a little confused, Network marketing in India is also called pyramid selling, Multi-level marketing (MLM), and referral marketing. It is a marketing concept for the selling of products or services where the income of the MLM company is derived from a non-salaried workforce promoting and selling the company’s products/services, while the earnings of the participants are derived from a pyramid-shaped or binary compensation commission system.

A network marketing business, as the name suggests, is determined by a large network of people. As well as known as direct selling or multilevel marketing, it enables you to get rich quickly.

There are two methods in which net income and profits are generated. First, direct selling of goods or services to customers. Secondly, earning a commission by hiring more salespersons to the network of the direct selling company.

High profits are possible due to the flushing out of retailers or distributors in the marketing chain. The fee earned by recruiting is the motivation factor that makes it possible for these multilevel marketing companies to dominate the market in India. With very little investment and a high growth rate, you can become successful. And it’s even better if you can nail post-purchase marketing to re-engage customers who’ve already bought from you.

Commonly, network marketing has been used for fraudulent gains. Being a pyramidal structure, network marketing helps people at the top to earn money fraudulently. Such schemes commonly do not sell any products. They get people at the base of the pyramid to invest some money, which finds its way to the top. They are known as Ponzi schemes.

Such schemes are prohibited in many countries. But in India, the network marketing business is booming. This is mainly because, in the country, only direct selling companies are authorized to operate. They operate under the direct selling instructions presented by the government. This makes them viable and sustainable for the long haul.

For many years now, such network marketing companies have made their impression. Their functions are self-regulated by a body called the Indian Direct Selling Association (IDSA). So it’s evident that the MLM business in India is in safe hands.

Here are the best Multi-level marketing companies
Amway is one of the largest network marketing companies in India. This American company has had its presence in India since 1995. It operates in the FMCG segment. By selling quality products, the company has established its foothold in the country.

Related : Amway Business Plan in India

Herbal Life

Herbalife was found to provide healthy products in order to acquire market trust and change the nutritional routine of each and every individual. Herbalife holds the third position in the global sector in terms of earnings generated at 4.43 billion US dollars at the end of the fiscal year 2017. After

Amyway is the second best MLM business in India.

2. Mi Lifestyle Marketing
Mi Lifestyle Marketing

Mi Lifestyle Marketing also has tie-up with various branded companies and corporate for retailing of the products directly to the customers.

Each product is identified with parameters like MRP, DP, BV, etc. The selling of quality products is flourishing in modern trade as of now and it has future potentials as well. The future of this industry, as well as people associated with it, also seems bright.

For that reason, Mi Lifestyle Marketing seeks to provide a secure working environment to the individuals of this country by offering self-employment opportunities to people who wish to procure a financially stable future themselves and the family members.

3. Vestige

Vestige Marketing Pvt. Ltd. was set up in 2004. The company has a really good growth rate among its direct sellers. It has distributed into multiple products and generates good returns for its sellers.

4. Safe And Secure Online Marketing Private Limited
Safe Shop

Safe And Secure Online Marketing Private Limited is a Private incorporated on 22 January 2001. It is categorized as a Non-govt company and is registered at Registrar of Companies, Delhi. Its authorized share capital is Rs. 1,000,000 and its paid-up capital is Rs. 500, Dedicated SMTP with IN XBOX technology is involved in Other retail trade of new goods in specialized stores


The plasticware heavyweight is yet another big network marketing company in India. Having its presence for more than 20 years in the country, the company is one of the most trustworthy direct selling brand names.

Before bouncing off this page, read the following information. It’s super important.

The legality of Multi-level Marketing

MLM as Direct Selling or Network Marketing is totally legal. However, Money circulation MLM wherein there is no real product involved is illegal (Also called a Ponzi scheme). Therefore, the selection of an MLM company is crucial!

You can know if it is an illegal MLM if:

Initially, they charge you money to subscribe to the business. (Legal MLM businesses don’t have an entry/joining fee)
The product is virtual and not physical, just like the bit coins you own. If the website is taken down, you lose all your so-called products. The same is with educational materials or some business selling educational products.
The company has an “e-wallet” where all your commissions are transferred and you have to request for a bank payment or get it in cash by selling to someone else. (Legal direct sellers will pay your incentives/commission in your bank account after deducting TDS on the day it promised.)
You don’t get a Tax Invoice with the product that you purchased.
It doesn’t have a registered office and manufacturing unit in India.
You can say that the MLM company is illegal if it has anyone of the above mentioned aspect.

MLM has to be legal in India because these companies are creating jobs for the jobless and give work to earn an extra income to those who earn peanuts. It will benefit millions of people in the years to come. They also help in skill improvement with their training programs.

Do’s and Don’ts of Multi Level Marketing
Ask questions – what is the individual either who is looking to use your product or looking to start a business looking for. What are THEIR needs and wants?
Confirm their wants to make them feel as if you’re listening to them and comprehend what they are saying.
Build a connection with them by finding things similar.
Become a specialist in both the product and business. You don’t need to know every little thing about both but you should be able to make them feel as if you really know what you are talking about.
Always mention advantages and not features. An advantage is something that, well, benefits them. Features are components and most people want to know the outcome, not how it works.
Have posture and confidence but NOT arrogance.
Show your business opportunity as an option to get ahead and as a specific thing they can do part-time to start. You don’t want them feeling as if your way is the ONE AND ONLY option.
Don’t talk about yourself too much.
Try to impress them. People care about themselves, not you.
Don’t start promoting the product directly.
Don’t mock other brands.
Don’t make them feel as if they did something wrong. For example, the last product they used was a mistake and would never work.
Don’t push them.
Don’t come across as desperate.
Don’t tell them what they are presently doing (meaning a job for example)is wrong or will never get them to where they want to go.

These are just some of the basics but will get you further. We all start network marketing full of fire and think we have the best product, business opportunity, and products man has ever created.

The fact is, our option or products are not for every person and we have to acknowledge that. You also have to remember that a “NO” can just be a “NOT NOW”.

Regardless of what kind of business you run; whether that be a Standard Retail Store or Multi-Level Marketing or a Network Marketing Company, marketing, and advertising is important to reach new prospects, boost sales, and expand your brand awareness.

So, I have listed down three of the best advertising/marketing agencies in the city. I’d suggest you go through it and pick the best advertising agency in Bangalore for your business.

Be persistent, believe in yourself and the product and if you don’t, you might need to change providers. If you really don’t believe in your business, it will show and people will feel it a mile away.

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