Multi-level marketing or Network Marketing is a worldwide accepted powerful business trend. So many Celebrities and business experts and so many people around the globe had embraced this network marketing profession as a life-changing tool. Alike any other nations, India has also observed some changes in multilevel marketing.
Network Marketing Business has been a popular form of business in India for so many years. With MLM companies like Avon, Amway, Oriflame, etc. providing an uncomplicated way of income to the housewives. But, when it comes to MLM frauds and scams, a preponderance of people in India are still uninformed of whether MLM is legal in India or not, and what an MLM means. This article lays down the idea of Multi-Level Marketing, the legality of MLM or Direct selling in India and what sorts of MLM businesses are illegal in India.
It’s a general doubt among people in India, whether MLM is Legal in India Or not?
So let’s dive into it for depth.
Network Marketing ( Multi-Level Marketing ) or commonly known as MLM is a promotional business strategy wherein a seller of a company markets a product or service for the Network Marketing business and hires a new salesperson below them to branch out the deals of the MLM business’s products or services.
MLM follows a hierarchical structure where the purpose of the person on a high level is not just to market the products or services, but to extend the hierarchy by hiring more people under him/her. To make the MLM business smoother, MLM companies depend on MLM Software to enhance their MLM Business. So that everything like sales and commissions earned is handled smoother with an MLM Software
So read more to know whether this MLM approach is practiced in India or is multi level marketing legal in India?
Read more on What is Network Marketing?
India is a country which has a tremendous human resource and people growth. So the MLM Entrepreneurs always keep their eyes to find MLM Business opportunities. So Many MLM companies consider that India is a great market for doing Network Marketing business. Being the most populated country in the world, India is a great market for product sale. However MLM business is not new in India, It has been there in India decades. In the starting stages, the idea and the word ‘multilevel marketing’ or ‘direct selling industry “was not so much accustomed to people. Today it is pretty popular and a growing trend in Indian business.
Read more on Growth of Network Marketing in India
Multi-Level Marketing or Network Marketing is a legitimate form of business in India. However, several illegal and fraud MLM companies work in India that runs a pyramid scheme to entice more people to buy their MLM products and scam them for their hard-earned bucks. A legitimate Network Marketing company is the one which works under the proper procedure laid down by the government. However, in a popular country like India, it is difficult to identify legal MLMs from unauthorized MLM. Therefore, it is necessary to identify a legal MLM company by its characteristics and methods of promoting.
Some of the key points of a legal MLM company in India are:
However, there have remarkable conditions for lawful direct selling in India. Let’s have a look at what it is.
When it comes to laws associating to MLM companies in India, before, Multi-Level Marketing businesses were treated under the Prize Chits and Money Circulation Schemes’ (Banning) Act 1978. But, due to the growing number of MLM frauds in India, on 12 September 2016, the Indian government proposed Model Guidelines for Multi-Level Marketing/ Direct Selling. The latest guidelines include the following terms:
MLM/ network marketing is now gaining popularity in India. It is also a part of the Indian economy and entrepreneurship. Many Multi-level marketing companies had obtained attention in the market with their unique MLM product and services. The new guidelines and laws from the Indian government made network marketing business systematic and notable. So Many people came into this network marketing business and some accomplished great financial benefit from MLM with their hard work.
Read More : Top MLM Companies in india 2021 ( updated )