Future of Network Marketing in India 2025
The future of Network Marketing in India is not very bleak and shows high inspiring statistics. Top business and economic analysts have forecasted and reported on a developing market for MLM companies in India by 2025. This is why the future of network marketing in India looks bright.
In this article, we will look into the Future of Multi-Level Marketing in India by 2025 and also determine whether MLM is legal in India.
01
Is MLM Legal In India?
Multi Level Marketing or Network Marketing is a legitimate form of marketing in India.
However, various illegal and scam MLM companies work in India that operate a pyramid scheme to lure more people into it.
A legitimate Network Marketing company works under the conventional procedure laid down by the government.
“ Nevertheless, in a traditional country like India, it is hard to recognize legal MLMs from unauthorized MLM. Therefore, it is necessary to recognise a legal MLM company by its characteristics and methods of promotion “
Growth of Network Marketing in India in the last decade
Above we discussed how the MLM business started in India. Over the years, Direct selling companies in India have flourished serving millions of customers worldwide. Now we will examine the growth of network marketing in India 2025 in India by investigating the up and down of the previous years.
Almost Doubled in 2016
The direct selling industry in India appears to be engaging in the yielded benefits. Yes, that is almost doubled in the year 2016 when correlated with the year 2011.
Predicts to reach 173.3 Billion in 2025
From the record of Assocham, it is evident that it will touch the record of around 173.3 billion in 2025. The average sale is improving for each person, and it is almost about $300 yearly.
Sufficient market ground like never before
The study also shows that the network marketing business has sufficient space for the marketers and can make a contributory platform to enhance the Network Marketing business in India.
How MLM gives growth to Start-Up India Mission
MLM business is an essential factor for digital India or Startup India mission. Direct Selling entities necessitate for implementation of guidelines at the state level and also require relaxation under Foreign Direct Investment (‘FDI’) policy.
To support Network Marketing business and direct selling Indian Govt passed a 100% FDI Policy. So we can clearly state that the network marketing future in India sounds very good and this sector will offer many jobs opening. You can join any most reliable direct marketing companies in India to start additional income.
MLM growth statistics globally
Spreading to more than 100 + Countries
Nowadays, Network Marketing is the most loyal industry to stay successful and began operating in more than 100+ countries with the extensive size of the market. i.e. around 168 billion USD.
A recent study revealed that the ranking of MLM business rose from 22nd position to 20th position during the year 2015 to 2016.
The best three markets during those years were the US, Korea, and China.
During the year 2015 to 2016, the sales volume achieved a record of $183 billion globally.
A tremendous number of people began joining the MLM business. Almost around 80 percent of the countries around the world started participating in the MLM business.
As per the survey handled from the year 2015 to 2016, almost around 50,000 people profited from the MLM opportunities offered by the direct selling companies.
Several government schemes like Digital India, Make in India, and Skill India supported the attributes and growth of network marketing in India.
Key Characteristics of Legal MLM Company
Some of the principal points of a legal MLM company in India are:
| Legal | Illegal |
|---|---|
| Legal MLM company provides a fixed time for its members to achieve financial benefit. | Illegal MLM businesses usually offer quick, easy, and suspicious money. |
| A legal MLM Company gives its members a well-defined MLM compensation plan to sell their product, | No real MLM plan or strategy is given by an illegal MLM. |
| A legal MLM company gives high-quality MLM products to its consumers supported by a certificate of quality. | An unauthorized MLM company does not give any support to the kind of products it gives. |
| A legal Network Marketing company gives a fixed amount of MLM commission or incentive to its members based on their businesses achievement. | An Illegal MLM serves no bonus systems and offers lucrative and immediate incentives to attract more people |
New Rules In Network Marketing
The government has recently banned network marketing or direct selling companies from promoting pyramid schemes.
The new notification and rules set by the government would help legitimate MLM companies to get properly distinguished from other illegal MLM companies that operate on scams and pyramid schemes.
Rule 1
The new rule mandates network marketing companies to have a grievance redressal system.
Rule 2
Every distributor or direct seller needs to be identified and verified with an ID card issue as well.
Rule 3
It is made mandatory for every firm to provide the details of their goods, services, prices, and credit terms.
Rule 4
Policies and terms for return and exchange have to be specified.
Rule 5
States are asked to monitor direct sellers.
Rule 6
Direct selling companies or MLM companies are required to fully comply with these rules within 90 days.
These new rules are visioned to give more growth for the MLM industry by giving it a proper line of distinction from companies scamming through pyramid schemes
02
How will these Rules Enhance Direct Selling Business?
Grievance Redressal System Increases Trust and Transparency
These rules are gonna make sure that grievances of those dealing with the network are properly addressed. This shall help more problems to be solved properly and held accountable. This shall increase people’s trust in the business when they are promised to help if they fall or are scammed.
Properly Distinguishes Illegal Companies from Legal Ones
These rules make sure that illegal MLM businesses and scams would not be able to survive in the face of such stringent rules. This helps people to get clear distinctions and get directed to MLM companies that are legal.
Safeguards Consumer Rights
Consumer rights are better safeguarded with rules that mandate better detailing of products, services,credits, and grievances.
Enhance Government Watch
Enhancing government watch on direct selling businesses and its distributors will help to avoid scams and pits from reaching the public.
Benefits of MLM Business
Minimal Risk Involved
Starting a multi-level marketing business involves considerably minimal risks compared to any traditional business. The start-up costs involved are low, you don’t need an office, or hire employees, you will be given appropriate training, etc… The ratio of what you can gain vs what you have to lose is very much in your favour
Potential of Huge Income
MLM businesses offer members the chance to earn huge incomes. There is no limit to how much income you can make from an MLM business. You can earn genuine commissions from the sales you make, bonuses for achieving sales targets, or recruiting downlines, commissions from sales of downlines, and much more.
No Employees or Managers
You don’t have to hire any employees or work under managers in the MLM business. Everyone works as one combined team and for each other’s benefit. Would you rather be an employee in a strictly managed business or be a part of a collaborative team working towards a common goal?
Flexibility
Flexibility is one of the most important things today’s generation looks for in their careers. As you are your own boss in the MLM business, you have the flexibility to make your own hours. As there is no office or employees, you can also work from anywhere. This is so much better than being tied up at a 9 to 5 desk job.
Community
MLM businesses offer the unique opportunity to join a close-knit community of people with similar aims and goals. You get the chance to build strong relationships and connections with your team members. The experiences you have in your MLM journey can ultimately boost your confidence, public speaking skills self-esteem, helping you to grow as a person.
Growth of MLM Business During 2020-21 Pandemic
While many businesses experienced a dull phase during the pandemic, MLM businesses were on the rise. More people were attracted to MLM businesses during the pandemic situation. This couldbe due to:
1
Chance to work remotely during the pandemic.
2
Possibility to gain passive income.
3
Attract millions of new members through FB, Twitter, Linkedin, etc.
4
People spending more time at home.
5
Many new celebrities supporting MLM.
6
The rise in demand for health and wellness products.
7
People indulging in more self-care products.
8
Closing and infection danger of physical stores.
9
Economic slowdowns have historically been good for MLMs
Future of Network Marketing in India 2025 – Network Marketing Growth in India
Before looking into the future of Network Marketing in India, we will quickly glance at the history of the growth of the MLM business so that it provides a crystal clear picture of the eternity or growth of the network marketing business.
History of Direct Selling in India
Network Marketing business has emerged in the USA during the year 1886 with the establishment of Avon
1925– During this year, the direct sales volume progressed to around 300 to 500 million USD.
Between 1940 and 1960– Many companies arose based on the idea of multi-level marketing or network marketing. In 1970-New products are being concentrated on widening the Network Marketing business. Product divisions like wellness products, household products, and food items started growing to attract potential customers.
Between 1990 and 1996-Many major MLM companies like Avon, Amway, and Tupperware spread their service globally to make massive customers for their MLM business. They commenced their MLM business in India, Korea, and China.
This is how MLM business starts in India!
Winding Up
From the above statistics, details, it is crystal clear that the MLM industry has remarkable potential to evolve more success in the future of Network Marketing in India 2025. It has influenced the social as well as economic parameters in India. It is expected that it will reach around 159.3 billion by the end of 2021 and INR 645 billion by 2025. Clearly we can conclude that growth of network marketing in India is very encouraging.
Meet The Author
Saleem G
MLM Content Strategist at Infinite MLM Software
April 16, 2024
