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Network Marketing

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Network Marketing

What Is Network Marketing?


 Network marketing is a business model that depends on person-to-person sales by
independent representatives, often working from home.
 It typically involves using three basic types of systematic strategies to make money: lead
generation, recruiting, and building and management.
 Network marketing appeals to people with high energy and strong sales skills, who can
build a profitable business with a modest investment.
 A network marketing business can be a single-tier program, whereby you sell the products
or, multi-tier where you also recruit additional salespeople.
 Beware of network marketing companies that create many tiers of salespeople or require
you to purchase expensive products or training material up-front -- and thoroughly research
the company before you join.

Terms related to Network Marketing: -


1. Direct Sales: Network marketing companies promote and sell their products directly to
customers, rather than through a well-defined distribution channel. The participants are given
the job of selling the items, and they are paid a commission for each sale they make.
2. Entrepreneurs that are self-employed (IBO): The participants are referred to as IBOs since
they act as if they are running their own company.
3. Distributor: Most multi-level marketing companies refer to their members as distributors
rather than salespeople.
4. Downline: Members recruited by the distributor or fresh recruits registered by these
members make up the distributor's downline. All distributors profit from their downline
sales.
5. Upline: All distributors in the hierarchy above a member's personal sponsor. All the way up
to the Head of Sales is the upline. On sales made by downline partners, all distributors in the
upline get a commission.
6. Plan: It Makes a list of all the many methods salespeople may earn money. The plan also
demonstrates how pay varies based on sales volume and the number of partners recruited.
For their staff, reputable organizations make the strategy as open as feasible.
7. Sponsorship: A person who brings in a new employee to the company.
8. Recruit or collaborate: An individual who is brought into the company by a sponsor. The
sponsor is compensated for the sales of the partner.
Types of Network Marketing: -

1. Single-tier Network Marketing: - You join a company's affiliate program to sell its
products or services through single-tier network marketing. You don't need to recruit other
distributors, and direct sales are your only source of income. Avon, a well-known cosmetics
firm, employs single-tier networking marketing.
Some internet affiliate schemes pay you for driving traffic to the affiliate's website. Single-
tier networking also includes pay-per-click (PPC) and pay-per-lead (PPL) affiliate schemes.

2. Two-tier Network Marketing: - Two-tier network marketing, unlike single-tier network


marketing, requires some recruitment, but your compensation isn't entirely dependent on it.
You get compensated for direct sales (or traffic driven to a website) as well as direct sales or
recommended traffic generated by affiliates or distributors you choose to work for you.

3. Multi-level Network Marketing: - Some direct sales organizations employ multi-level


marketing (MLM) to encourage existing distributors to recruit new distributors in exchange
for a portion of their recruits' sales. The recruits are the "downline" of the distributor.
Distributors also profit from direct product sales to clients. 
Amway, a well-known multilevel marketing organization that offers health, beauty, and
home care items, is an example of a well-known direct sales organization.

Advantages of Network marketing: -


1. There are no restrictions on the size of a network marketing organization. 
2. Companies do not need to rely on advertising to advertise their products since they have a
solid and powerful distribution network that engages customers directly.
3. Distributor structure also affects retailer profit margins, which are considered an
expenditure by firms.
4. Another benefit is that corporations do not have to spend as much money on storage and
delivery as they once did. This is due to the fact that distributors are responsible for these
costs.
5. Distributors can make an endless amount of money from their business transactions with
the organization because of this framework. They can make money from both their own
earnings and commissions.
Top 10 direct selling companies in India 2021: -
1. Vestige :- Vestige is at number one in the list of India’s no. 1 network marketing company.
Vestige has made it to the top 5 network marketing company in India with millions of
distributors spread all around India. It has recorded phenomenal sales with its quality
personal care, health, and luxury products. You can enjoy profits through the direct selling of
these products as well as through the performance of people below you in the network. It
provides 5% to 11% as a cumulative performance bonus, 14% on business building and other
funds as per your network performance.

2. Oriflame :- You will surely find Oriflame whenever you search “what are the top 10 direct
selling companies in India?” Oriflame is the next name in the list of India no. 1 network
marketing company. Oriflame has an immense business presence in India for its Swedish
beauty and personal care products. It is one of the top MLM Company in India. It promotes
direct selling as well as MLM and once you register yourself with Oriflame as a VIP
customer or brand partner, you can purchase products at a 10% to 20% discount on MRP and
sell them to earn profits. Moreover, you can even enjoy discounts on the schemes.

3. Herbalife :- Herbalife is the next in the list of no. 1 network marketing company in India.
With the rising health awareness, you must have come across Herbalife, which is one of the
multi-level marketing companies in India right now. It has created a large network of health
and nutrition supplements. Herbalife is also one of the top MLM Company in India. The
products sold by Herbalife’s associates are not available in general stores. After joining
Herbalife, you can earn through direct selling and network marketing. You can also check the
earning scope here.

4. DXN India :- DXN India is the next in the list of India’s no. 1 MLM company. DXN India is
one of the top five network marketing company in India providing unique products in the line
of Ayurveda and health supplements, food and beverage, personal care, and cosmetics. You
can earn 15% to 25% as retail profit and 6% to 21% as group profit when you join as a
member. The profits increases as you upgrade your position through sales. However, DXN
India prohibits selling through a third-party website such as Amazon, Flipkart, etc.

5. Modicare :- Modicare, who is the no.1 MLM Company in India, provides common people
with earning opportunities through network marketing. It has a wide range of products in
personal care, home care, wellness, skincare, etc. You can earn up to 20% profit through
direct selling and much more with group sales performance.
6. Amway :- Amway, who is India’s no 1 direct selling company has a huge market influence
with the variety of products. There is no registration fee and you can earn through direct
selling as well as MLM.

7. RCM :- RCM, which is a multi level marketing company in India, can help you in earning
through the sales of grocery items, cosmetics, and garments. The RCM offers a wide range of
products. For more product details you can check their product catalog. You can earn a good
commission through network marketing in this company.

8. Safe Shop :- Safe Shop is also a multi-level marketing company in India. It is relatively new
and has great growth potential. It trades in essentials, fashion products, personal care
products, etc.  If you start early as a marketer here, you will probably earn plenty when the
network grows.

9. Mi Lifestyle Marketing Global Private Limited :- Mi Lifestyle Marketing Global Private


Limited was established in the year 2013. The Mi Lifestyle is one of the top 10 direct selling
companies in India. It is also one of the most popular multi-level marketing companies in
India. Mi Lifestyle offers a wide range of Health Care, Personal Care, Agri Products, etc.

10. Forever Living :- Forever Living is top 1 network marketing company in India that trades in
health and beauty products. It is relatively a new networking marketing company in India and
can help you earn through network well if you can promote brand awareness and make sales.

Top Network Marketing Companies in India with their websites: -

S. No. Network Marketing Company Website

1 Vestige www.myvestige.com

2 Oriflame https://in.oriflame.com

3 Herbalife www.herbalife.co.in

4 DXN India www.dxnindia.in

5 Modicare www.modicare.com
6 Amway www.amway.in

7 RCM www.rcmbusiness.com

8 Safe Shop www.safeshopindia.com

9 Mi Lifestyle Marketing www.milifestylemarketing.com

10 Forever Living https://foreverliving.com

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