WHAT IS NETWORK MARKETING AND ITS SCOPES IN INDIA?

There are so many anticipations in network marketing. Although worldwide there are so many recognitions, in India there are many still in dilemma and are uneducated about this field.

What is network marketing?

It is a business model that depends on person-to-person sales by independent representatives, often working from home. This requires building a network of business partners or salespeople to assist with lead generation and also closing sales.

It has a variety of names like a multilevel marketing (MLM), cellular marketing, affiliate marketing, consumer-direct marketing, referral marketing, or home-based business franchising.

How does it work? 

These companies create tiers of salespeople and encourage them to recruit their own networks of salespeople. The creators of the new tier (uplink) earn commission on their own sales and also on sales made by the people in the tier they created (downlink). In time, a new tier can sprout another tier, and hence contributes more commission to the person in the top tier and the middle tier. 

Advantages & Disadvantages 

One of the main advantages of network marketing is that you will feel like your own boss- without taking on the responsibility of starting your own company. You will work out of your home and make your own hours, giving you the flexibility and gain skills like developing instant connections with others, cultivating and leading a team and effective follow-through making persuasive presentations.

The disadvantages of network marketing are it will take time to build your business and many people will tell you “no” before you starting hearing a “yes”. Competition is fierce, so you must strengthen your resilience, build your brand, market yourself, and innovate your ideas.

What is the scope of network marketing in India?

Seeing the graph, we can say although there is a less population in countries like the USA, Korea, Germany, etc they are ahead in network marketing, unlike India. 

The reason behind this being that the people of India lack awareness and understanding of the business model that lets people in false hopes and scams and ‘gets the rich quick scheme’.

On 9th September 2016, The Government of India is all set to support and clear the path for the growth of the industry. They predicted that this will increase the growth up to Rs. 9000 crores till 2025 having around 675 billion people doing network marketing.

It has a good scope because of the following reasons:

1. India is the second-largest populated country, and it is also facing unemployment issues.
2. Network marketing allows you to start a business at a low cost.
3. This is not like a normal 9 to 5 job, so one can give time to the business according to their needs. 
4. One can even start this as a part-time business so even students and homemakers can benefit from it.

So, in other words, network marketing can be the future of India as it appeals to every age group.