Introduction
Network marketing is nothing but a market strategy to sell any product or service where the company’s revenue is generated from a participant who is selling the company’s product or service, and the participant’s earnings are generated from the commission system of a pyramid-shaped compensation. This means that the participant can be compensated only under two circumstances. First is when the participant makes a direct sale to an end-user of the product or the service. The second is when the participant recruits other participants in his or her network, who are referred to as their downline distributors.
In India, network marketing is widespread in all sectors, including beauty and skincare, health and nutrition, crockery, cutlery, and kitchen appliances. However, its growth is stagnant and only had US dollar 1 billion in sales in 2015, despite India being the world’s third-largest economy with a growing population of 1.3 billion.
Due to the lack of clarity in the law and numerous Ponzi schemes floating around, the Indian market did not warm up to the concept of network marketing in India. However, the process of legalizing to create a regulatory framework for network marketing finally got its due attention in India and the laws around these have started getting stringent, making them safer and more popular.
How To Open A Network Marketing Company In India – 6 Steps Guide
Recently, India has seen a lot of growth in network marketing in India companies. There are many national and international companies in this sector. And many yet to explore the market. Here are some steps that will help you in your path to open a network marketing company.
Step 1: Decide Upon A Product Or Product Line
The hero of the show is the products that you will choose for your business. There needs to be enough market research done before deciding upon the products. You can test the interest levels and appeal of your product by an informal outreach to your potential customers and distributors.
Step 2: Create A Strategy
A plan needs to be put in place in writing outlining the business goals, vision, and purpose. This can also be useful when pitching your business to get funding. The information should be very exhaustive and cover every financial detail.
Step 3: Create A Compensation Plan
The compensation plan is the foundation of your business and this element will attract a lot of people to your network. This needs to be attractive and chosen in a way that sticks the right balance.
Step 4: Licensing And Registration
You need to have a current savings account. Apply for Vat/Service Tax/ Tan No and any other licenses and registrations necessary for manufacturing and selling your products. It is a good idea to have a legal advisor and CA outline the rules and regulations of your business.
Step 5: Network Marketing Software
The network marketing in India software is going to be the main mechanism that drives your business and keeps all the aspects run in sync with each other. Choosing the right software is very critical, one that addresses all your business requirements.
Step 6: Market Your Business
Once all the above steps have been achieved, marketing your business plays a crucial role. This is what enables your business to reach out to maximum people and have an impact. You can achieve your targets with the help of an excellent marketing strategy.
Must Read: How to Start a Business in India
Final Thoughts
India is a growing market for network marketing. There are many genuine schemes out there in the market, but also a lot of fraudulent ones too. Whether you choose to join a network marketing company or have one of your own, it sure is a lucrative market out there. One must do their research and study before investing on their own.
Frequently Asked Questions:
Which Network Marketing Company Is The Fastest Growing In India?
Modicare Limited, they are the leading company in the health and personal care in network marketing. This company was established in India.
When Did Network Marketing Start In India?
In 1995, when Oriflame came to the Indian market, it introduced network marketing.
