lose or gain in Multi Level Marketing In your opinion. Tell frankly

@Anna George. For your first question Amway founded in 1959 and in India it started operations by 1998.

For the second Question, Bill Britt, Dr. Hall Newball, Kanthi Gala, Kulin desai, and many been developing the business for more than 20 Years. In India, Paulraj, Sundaravadivelu and number of ppl r with the company since 1998. With Amway, the business spans in to generations.Very loooooooooooonnnnnnnnnng time business.

http://www.thehindubusinessline.com/industry-and-economy/marketing/article2633277.ece?ref=wl_info-tech_art. Amway's native country is US and i couldnt find their business figures. I never said its easy making money with Amway or any other good direct selling company. You have to put the effort it requires. You can see many failures than successful people, because investment to start a business when compared to others is very little. So people start easy and quit easy. Only ppl who stays long and do the required work, tastes success.

YOU ARE ANSWERING WITH A BIRDS EYE VIEW. CHECK THE COMPENSATION PLAN, YOU CAN EARN MORE THAN YOUR SPONSOR. MY DOWN LINE IS MAKING MORE MONEY THAN ME AND AM MAKING MORE THAN MY SPONSOR.

Organised direct selling( IDSA members )  is Rs. 5000 crores. you have to decide whether its growing or not if u  follow from 1999.

you opinion may be right for pyramid schemes, but not for the ones like Amway.

You are right. Be careful with product and checkout for money back guarantee. 

You will definitely loose your friends and relatives if you do it like begging. Rather present it as an opportunity and leave them to decide. ad importantly try to find real companies which has good record. Go with any IDSA member company. Careful while choosing the person whom u r going to associate with

Determinants of Network Marketing Company's Legality You are probably thinking of joining Network Marketing or MLM, but there are so many factors when select Network Marketing company. Over the years there have been scammers be it online or offline promoting good and services in unethical manner. In determine whether a particular program by a company is a legitimate, the recruits should consider several important points.

Below are some of the points to take note.

1. Legitimate mlm company have Good or Service to their consumer – when a company has products that has no value to the consumer, then the sole aim of doing business is to recruit and get money. Why should you get involved with a company where customers will not get satisfactions, who are going to sell to. Network Marketing companies with good and service that do not have value to its distributors and customers will rely very much on cheating or making claims of how much you are going to earn just by buy one of their products. With no customer’s satisfaction guaranteed stop.

2. The Price offered by a legitimate Network Marketing companies are fairly and competitively priced, when a company has a fair price, many people will be able to buy there products and services but also will be interested in joining the distributorship of the company. The independent Representatives should be able to purchase the company products at wholesale price which allow them to make money when reselling the products. If the company you want to join has goods that are highly priced with no value then watch out, you are about to lose if you are going to spent $700 to buy a product to get started

3. A legitimate Network Marketing Company pays Sales Commission solely for goods and services purchased, if a company pays a commissions on sales materials, then watch out, you are about to promote recruiting programs where people are paid after they recruits pays a registration fees

4. Product Use - a good Network Marketing companies offers products and services that people use. Buying a product which is not consumable by people means your chances of succeeding in that particular company is 0%

5. A good mlm company does not requires minimum purchase nor inventory requirements in order to become a member to start distributing its products

6. Legitimate Network Marketing company offers training to their distributors, on how to sell and present the Business Opportunity of the company

7. Earning claims by representative should be supported by documents falsehood claim done just to recruit other representatives should be avoided

8. Members of the company can also earn money from retail commissions, where non representatives are encourage to buy products. If accompany only sales to its members then you have a good reason to run away from that Company

9. Independent representatives are encourage supporting their downlines, if this is not happening in that particular company then just run away.

I feel sorry for your bad experience. Every Industry has good apple and bad one, i think you got in hand of Bad :).

I am not sure, which co products you found 5-20 times higher :), Network marketing business models is more than 15 Billion today , based on their ability to sell products- 50% cheaper, as they dont need to spend in Marketing/advertising/distribution.

if co offers following, there will not be  a problems :)

1. No repeat purchase
2. no monthly slabs as targets
3. co offers product in many categories, Not only in consumables
4. every one in network earn same commission level
5. you dont need to have a stock at home.

Co should not ask for repeat purchases

Multi level marketing is not taken very seriously in India. But it has got tremendous potential for growth. Those who succeed have done hard work in a manner that is uncommon hence they are successful. Any body can do it but its not as easy as it is told to be. 

Moreover i think its one of only concepts around that still strongly advocates the principle of Free Enterprise. Secondly, i believe it actually provides a level playing field for everyone and an open platform to excel, irrespective of religion, creed, family background and education. Thirdly, it enables a person to get paid in proportion to his performance. I am making all this arguments under the premise that the Network marketing company has solid credentials and financial stability to back up their marketing plan.

The concept as a whole is brilliant.

Multi level marketing has not grown completely in India due to various factors.

However, as a concept multi level marketing (MLM) is an effective way to increase the sales of your products and profit considerably from the sale. However, appropriate guidelines need to be in place so that the individual distributors (or associates, independent business owners, dealers, franchise owners, consultants, agents, etc.) are not affected.

Some of the drawbacks of MLM based on research and actual industry data are -

1. Not all MLM schemes are legitimate. Some are pyramid schemes.

2. The Times: Just 10 per cent of Amway's agents in Britain make any profit, with less than one in ten selling a single item of the group's products.

3. UK Justice Norris found in 2008 that - Out of an Independent Business Owner population of 33,000, 'only about 90 made sufficient incomes to cover the costs of actively building their business.' That's a 99.7 percent loss rate for investors.

4. Newsweek: Fewer than 1 percent qualified for commissions and of those, only 10 percent made more than $100 a week.

5. In the USA, the average annual income from MLM for 90% MLM members is no more than US $5,000, which is far from being a sufficient means of making a living.

Finally, multi-level marketing organizations with greater incentives for recruitment than product sales may not be able to survive for long in the market.....

I agree with Sheetal.let the concept gain acceptation all-round.

I am not supporting the side but no reason to oppose it.

The question asked by Mr. Prasad is not complete. Because they didn't mention that on which basis we will give our views. Every marketing question has two aspect:- (1)From the seller part of view. (2) From the buyer point of view.

In sellers, we can consider MLM Owner's as well as sales men(chain leader). They are gaining too much from the MLM business and they can earn huge profit without any big investment.

But Buyers point of you say, they just become the victims of sales/marketing strategies. Now we have seen insurance products under MLM it means not only products we can sell or buy sevices through MLM.

But we can conclude it "As a seller/owner it is profitable business and As a buyer BE CONSCIOUS. Accept those products/services to become part of MLM which will be really need for your life .

It is one of the ways to connect with your audience (Customer) in a better way provided & promoted for a quality product. The so MLM format is in early stages at least in Indian it needs to be develop in a better way.

The concept is good, but in practice it is a game of cheating.  The innocent people becoming prey and loosing their hard earned money.  There are number of cases being reported and it is being considered as illegal.

This format is still at an very early stage in India. Though I see some companies like amway revlon etc are in to this but what I observed the top man of the team earns maximum without doing anything but creating the team the others down the line earns proportionately.

In my openion in India this marketing will not pick up at least for next decade or more since this is already going on for quite some time now and you see theadvertisements are appearing so it tell the story they are not doing well and loosing the steam.

concept of Multi level marketing is not clear to many people. Still they say this is bogus. But in my opinion MLM concept help every one to earn with team work from bottom to top. Also there is security of wealth,for ourself and family