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The scope of network marketing in India

Scope of Network Marketing in India
Written by Banani Chakraborty

The scope of network marketing in India is immense. Its growth spiked drastically in recent years. It provides a very powerful earning opportunity. It can make you rich very quickly with almost zero investment.

Network marketing is heading to be the most promising business of the 21st century. Recent statistical data reveals this fact. Network or MLM or direct selling industry is moving towards that direction. It is producing several millionaires as well as billionaires. Most importantly, they are self-made. Added to this, this industry holds the power to mitigate the challenge of growing unemployment in India.

The scope of network marketing in India:

Due to the high growth rate, the scope of network marketing in India is highly promising. Therefore, there is a decent scope of success in India in this field. Network marketing is also popular as multi-level marketing (MLM) or direct selling or referral marketing or pyramid selling. At first, India’s population is about 140 crores (1.4 billion). Over 50% of them are young. Besides, it is the third-largest economy in the world.

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What is network marketing?

Before understanding the scope of network marketing in India, we have to understand what is network marketing. How does it work? Network marketing is such a business concept where numerous non-salaried people work. They work for the promotion as well as sell of company products or service. In this business model, companies use people for the distribution and selling of products instead of ‘ads’ as well as traditional ‘typical’ marketing form. They also pay the people for the distribution and selling of products. Therefore, your income depends on product movement.

In this system, MLM companies sell their products or services or both with the help of a non-salaried workforce. They distribute the commission to this non-salaried workforce. This non-salaried workforce promotes as well as sells the company’s products or services or both. Here lays the scope of network marketing.

Therefore, network marketing business needs a large network of people. Companies recruit or sponsor initial some very few persons (1-3). Thereafter, they build their network. They directly sponsor or recruit some people. They also sponsor or recruit below them. The process of sponsoring or recruiting goes on. As a result, a network builds up. This network of ‘downlines’ is also popular as a team.

In this way, people who are interested to earn from network market can build up a team.

There is immense scope of network marketing in India.

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How do you earn from network marketing?

The scope of network marketing in India is that you can earn in two ways from here. At first, on your direct sell. Secondly, on the total sell of your ‘team’. You receive your payment directly in your savings account at the end of every month. Generally, the companies transfer if your income is over a minimum amount. If your earning is below that amount, then they hold your payment and add it with your payment of next month.

Here, the personal sale has some limitations. Therefore, you may earn something extra by selling products. If you are looking for a decent income, then you have to build a network or ‘team’. If you want, then you can sponsor your customer and add them to your network. Your ‘team’ size, as well as ‘quality’, will determine your success.

Your ‘team’ or network not only can make you rich but also can bring financial freedom and happiness. Added to this you may get name, fame along with self-esteem. All these will help you to live life to the fullest.

The scope of network marketing in India may also play a vital role in finding the answer to ‘how to live life to the fullest?

But, before payment company deduct TDS (tax deducted at source) as per government rules. Moreover, they regularly submit this TDS amount to the Indian Government.

Therefore, income from network marketing is genuine and white.

Is network marketing a scam?

At first, we need to understand whether network marketing is a scam or not. It will help you to recognize the scope of network marketing in India.

To begin with, network marketing is not a scam. It is a government recognized business model. Indian Government also has established a regulatory body, the Indian Direct Selling Association (IDSA). It is a self-regulatory, autonomous body. This IDSA acts as an interface between the government and the industry. It strictly controls the Government policies. Therefore, it assists the entire industry.

Due to this IDSA, you may conclude that MLM or network marketing in India is legal. Now it is in safe hand. It is not a scam. It is genuine.

But, some companies do not properly follow the government norms. Therefore, to avail the scope of network marketing in India, you have to choose the company very cautiously.

However, some companies do not follow the same rule. Generally, they have a joining kit. You have to sell the kit. Your income generates from selling the kits. Normally, these companies are illegal.

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What are the best MLM companies in India?

In the first place, several companies are very good. You can choose any one of them to build your network career. You want to avail the immense scope of network marketing in India. The following companies are the best MLM companies in India.

  • Amway.
  • Mi Lifestyle Marketing.
  • Avon.
  • Oriflame.
  • Herbalife.
    top network marketing companies in India


  • IMC.
  • Modicare.
  • Vestige.
  • Safe and Secure Online Marketing Private Limited.
  • Forever Living.
  • RCM.
  • Tupperware.
  • Future Maker.
  • DXN India.
  • K-Link.
  • 4Life.
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Another heaven like the region is Himachal Pradesh. The scope of network marketing in India is that you can even develop your ‘network’ in these beautiful places. To tell the truth, people, all over the globe, frequently travel these places.

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The legality of multi-level marketing:

To understand the scope of network marketing in India, it is very important to find out the legal companies.

  • At first, MLM or direct selling companies or network marketing is legal. The companies sell products or services or both. However, money circulation companies are illegal. There is no real product. The difference is very little in a lot of cases.
  • Secondly, in legal companies, joining is free. Illegal companies generally charge initially as a subscription. Again, the difference is very little.
  • After joining you can purchase at your will in legal companies. There is no regulation. But, the illegal companies initially sale packages.
  • Besides, in a legal company, you will get genuine products. Illegal companies sell virtual products. Moreover, in a legal company, income depends totally on the product sell.
  • Further, legal companies have registered office as well as the manufacturing unit.
  • Added to this, legal companies provide tax invoice against every purchase where you will get details of your purchase.

At first, choose a legal company. Only then, you can reap the benefit of the scope of network marketing in India.

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Is multi-level marketing legal in India?

Network industry in India is an INR 75 billion market in 2015 according to FICCI (The Federation of Indian Chambers of Commerce and Industry) report. KPMG (‘Klynveld Peat Marwick Goerdeler’) compiled this report.

These MLM companies are creating earning opportunity for a lot of people. Furthermore, they will benefit numerous people shortly. The scope of network marketing is that it is booming at a rapid speed. It is also gaining popularity among the common people.

Added to this, the Government earns a significant tax revenue from this business. Therefore, MLM business is a legitimate platform for earning.

Further, direct selling or MLM companies are legal in India according to the ministry of consumer affairs.

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Growth of network marketing in India:

You will get a clear view of the scope of network marketing in India from here.

  • Network market business in India is almost double in 2016 compared to that of 2011.
  • According to ASSOCHAM (The Associated Chambers of Commerce and Industry of India), it may record a turnover of around 159.3 billion in 2021. The turnover may touch INR 645 billion by 2025.
  • During 2015-2016, it recorded a $183 billion business globally. Around 80% of the countries started this business.

As per IDSA report

  • This industry had crossed a turnover of Rs. 13,000 crores in the financial year 2019.
  • Gross sale of this industry in 2015-16 was INR 83,085 million in 2015-16. The growth rate was 4.4%.
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What is the future of network marketing in India?

To tell the truth, this MLM business has evolved as a highly recognized business in India. It is the scope of network marketing in India. It guarantees not only decent earnings but also time-freedom. Of late, the Indian economy is growing rapidly. It indicates the sustainable future of network marketing in India.

Direct selling industry has emerged successfully in 100 plus countries in the world. Besides, the market size is USD 180 billion.

According to FICCI, network marketing is amongst the fastest growing business in India. An estimated 5 million people are engaged in this business. It is a clear indication of the potentiality of direct selling business along with its future expansion.

According to IDSA, this industry may touch INR 15,000 crore by 2019-2020. Further, it is expected to touch 90,00,000 people by 2019-2020.

Final words:

The future of network marketing in India is highly prospecting and very strong. You may consider it as your career as well as an extraordinary earning opportunity.  The scope of network marketing in India is drastically promising.

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About the author

Banani Chakraborty

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