Do you think the Multi Level Marketing model(MLM) would be successful?

sorry to say ,you are talking about pyramid schemes, where stress is on making new partners and commission gets shared, you are not talking about network marketing co, which is legal because  70% revenue comes from sell of product only,

second as you said that to reach 32 line, you will need huge population-- every co has a model in which , they cuts u off after a certain period and give u fixed income, or else they wud go bankrupt.

Request you to research more n subject and models :)

Abhishek,

I appreciate your support for the direct selling industry . But for a better understanding of the forum am answering a basic question which is asked by all top management people we meet , which is 

How do the “Real” Direct selling businesses work?

 The working of a DIRECT SELLING company is very simple.

The company sells you a product, and also offers you a chance to join its distribution network.  However, you do not need to buy the products to join the network unless of course it is for personal use.

Consider this example. Say you (distributor) have joined the network and sold a product to person A who likes it and wants to start selling it, person A can get enrolled at a minimal cost which actually covers the cost of the training kit materials.

When he starts selling, then the company, the distributor (you) and person A all get payouts which are based on a percentage of the sales made.

If subsequent distributors have been well-trained and motivated enough to get out there and generate sales, everyone stands a chance to profit.  And when you profit, the company profits!

Direct selling is transparent and ethical with little scope for malpractices.

It can be compared to your normal 9-5 job too in many respects too. At your workplace, no matter which department you work for, the work you do adds to the value of the company. Your efforts are either equal or more than the salary you earn. So basically your boss makes money using your earned money.

Another good example is the sales force in Fast Moving Consumer Goods (FMCG), Insurance or Direct Marketing. Salesmen are normally paid a commission of 12%, and on achieving all targets are rewarded with a bonus. The sales manager who has to motivate and supervise his sales team, earns his own bonus and incentives. But guess what! He also earns 3% of all sales made from each of his sales members. And then there is the Branch Manager who reaps the highest profits for motivating his Sales Managers.

The truth is, direct selling applies in almost every business sphere but we just fail to recognize it. However, the difference is that with direct selling companies, you do not need to be at the top of the management to take home the fattest pay check. What you earn completely depends upon you; there is no cap or limit.

please keep in mind that the product should be primary and should be of actual use to the consumer (even if he is not interested in the opportunity).

if the product is not useful to the person in the business or a consumer , the business opportunity falls under pyramid scheme.

if everyone waits for the company to be 10 year old , there  would be no company .

Yes , training on products, business , etc is very important without which success is difficult.

• Yes- first choose the right co with world class products
• co should be min 10 yr old
• they should give you form 16
• in best possible different ranges, (not consumables) long lasting , Internationally recognized ,
• A model that promote a team game,
• a co which invest in lot of good quality trainings,
• it should not be geography based, its should be empowered by internet so, if a person is sitting in Delhi, can do business in London as well, if he has contacts.
• he can check his account an business even by Mobile.

A MLM is any day another form of business model and it is for sure a success model with win win situation to all.

However to set up a MLM should have a very level of understanding of the MLM principles and should fully adhere to the statutory norms of the government besides should have good and products and services that make a difference in the market place.

More and more co are trying to take for granted and want to exploit people for quick get rich scheme. MLM is not a quick get rich scheme.

Individuals has the responsibility to verify the credentials of the MLM Co before they get engaged.

cheers

Dear Pragya, This is happening in our country cause right now there are no regulations in place . Once we get the regulations for this industry which we are currently working on, there will be less people who would want to "try" this way of promotion as we will have the do's and don'ts along with the guidelines to safeguard the interests of the end consumer first before allowing corporations or individuals to intentionally or unintentionally take the plunge.

Till now ,whatever may be the intention (good or bad) people starting MLM company did not have any alternative but to shut shop because of reasons like no experience in running a business , not planning properly , copying compensation plan or pay plan of other company or companies , choosing an inexperienced software vendor (calculates the payout on basis of the complan) , improper financial management , not taking care of legal formalities , hiring inexperienced people to run the show ,etc are some main ones.

Unique / good benefit to consumers, attractive remuneration to customers( propagandists), Ethical and spporting busines back up will definitely make MLM's successful, Only the duplicators with everything copied and no strenght of their own fails

Very True . The good thing about people is that we are constantly open to growth and progress and therefore join the direct selling company when approched .

But the major problem is our human nature , which is not to recognize the potential of the business opportunity because the investment is very low as compared to traditional business ( franchisee , distributorship , etc) which runs in lacs and crores. And therefore we do not pursue the direct selling opportunity  (mlm) with the same grit and determination as we would have done in after investing lacs or crores in any other traditional business.

People( read companies too) in traditional business also fail and lose much more than in direct selling which is equally bad.

Direct selling companies are and can have higher success ratio if they have a right balance of compensation to the networks ( right from the beginners to the leaders) and the right products at the right price.

Planning itself should have all the overheads (onetime and regular) factored in the cost of goods. The focus should be on product sales and the income generation plan should be equally rewarding for all level of distributors.

Lots of people fail in direct selling because of lack of trainings provided by the companies and less of efforts put in promoting the products available with the company .

Yes , there are many fly by night operators promoting inferior products or non existant products at very high markups - which are the type of companies where 95% people do not recover even their investment .

These types of companies should be avoided by educating the countrymen which again is a herculean task because despite of more than 10 million people from our country investing in this industry the government is not giving it an industry status.

We are very sure that till the govt. does not regulate this industry more and more of countrymen (employed and unemployed , literate or illiterate , male or female , etc) will keep on falling prey to the cheat companies.

Meanwhile , we at www.strategyindia.com are working to make this industry more organized.