Well!! This is the first question arise in your mind
if you are a beginner or unknown about the network marketing. In today’s world
where competition in market is very strong, Multi-level Marketing is extremely
imperative for your business. MLM business doesn’t require a fancy store or expensive
showroom then also you can tap worldwide customers.
Network marketing is also known as pyramid selling,
referral marketing or network marketing
it is a type of marketing strategy which is for the sale of products or
services through non-salaried workforce also known as promoters, participants, salespeople, and
distributors. They get compensated on the basis of their sale not only for your
personal effort but also for your recruiter’s effort. These recruits are
referred as your sub-promoters or downline at multi-level. This MLM Business
generates opportunity for people who are looking for part-time and flexible
jobs.
Legal Formalities:
From legal point of view there is no separate law
for the MLM Company in India once in 2005 it was proposed in the parliament but
there are some Acts of Indian constitutions we have to consider before the
Set-Up of a MLM Business.
1. Under
Money Rotation Trade Practice Banning ACT 1969 Pyramid Scheme’s head count
commission is banned in India.
2. Under
Prize Chit and Money Circulation banning Act 1978 it should be not money
involved investment return it should feasible Product selling Business Format.
In order to setup a multi-level marketing Company in
India firstly set-up a Private Limited or Limited Company this involved limited
risk for owner.
Also apply for IDSA (Indian Direct Selling
Association) Member Ship. It is a private association setup by Amway India.
Membership in IDSA is important because this association govern entire Direct
Selling Companies in India. They maintain the MLM Business rout by controlling
unethical and illegal MLM companies.
It is very important to have a Vat/Service Tax/ Tan
No for selling, manufacturing and purchasing of the product and also all
required license and registration.
Must hire a CA (Chartered Accountant) or legal
advisor create your own company’s rules, regulation and policy without copy
past of others. It is also very important to create your online presence with
the help of a dynamic website, unique content and related company information
provided by legal advisor.
Business Plan: You must have a
business plan or a blue print of your business. It is a base of any business to
come up with required or unique goods and services in market in order to sell
it.
Realities of MLMs: Be
aware about the realities of pyramid schemes and MLM scams for the safe
business. Keep up to date yourself with the knowledge of direct selling market
and continue with the market research.
Choosing MLM Plan: Final,
tough and most important part for the business. Selecting a MLM plan decide
your business future because MLM plan work as backbone of your business and it
should be strong in order to long chase.
Omega Softwares is the provider of custom MLM software development solutions for businesses worldwide. Consult our software solutions specialists now to discuss how our development services will enable you to overcome your software technology challenges.info@omega-sys.com
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