Network Marketing is a vibrant
industry offering employment to over 43 million people worldwide with a
turnover exceeding $ 75 billion in worldwide sales of products and services
as per the figures of the World Federation of Direct Sales Association (WFDSA
) a body regulating the conduct of business on ethical lines and all members
bound by the this code of conduct.
Worldwide the Direct selling
industry is gaining ground as it helps to eliminate multi layered
distribution network and costly advertising. The profits thus generated
help in reducing the cost of the product and help Direct Selling agents to
make money for themselves and the organization they create.
Paul Zane Pilsner whose book the
Next Trillion Dollar a book which is three times best seller in the New
York Times describes Network Marketing as Intellectual Distribution
educating consumers about products and services that will improve their
lives, products, and services that they didn't already know existed.
The Network Marketing also requires
one important criteria-that is to be a product user oneself and then promote
the products based on ones own benefits and convictions unlike conventional
marketing where many of the products are never used by a person promoting
them.
The Network Marketing is currently
a subject of much debate due to some unscrupulous companies exploiting the
lack of awareness of Networking Marketing or MLM as it is commonly called.
WFDSA has put out detailed guidelines for the network marketing companies on
ethical conduct of business. All DSAs that are members of the WFDSA pledge
to abide by the World Codes of Conduct as a minimum standard of ethical
behavior
They are strictly prohibited
from forming pyramid schemes which pull in money from unwary consumers on
tall promises of big money and benefit few people, schemes which do not have
quality product or services meeting with local laws and paying money for
recruitments.
WFDSA also has very detailed
guidelines for choosing the right opportunity, the questions to be asked
before choosing an opportunity and verifying the antecedents of the company
that one wishes to join. There are legal counsels worldwide with whom
complaints can be lodged in the event of any malpractices or complaints
about the companies. But for all these safeguards to work one must join
business opportunities offered by companies which are members of the WFDSA.
There are local chapters or associations which are in turn member of WFDSA
subscribing to the Better Business Practices. In India Indian Direct Sales
Association with offices at Delhi acts as a regulatory body for the MLM
business.
Direct selling provides important
benefits to individuals who desire an opportunity to earn an income and
build a business of their own especially in the current scenario of rampant
unemployment; to consumers who enjoy an alternative to shopping in crowded
market, difficulties of travelling in congested roads and parking places or
the like; and to the consumer products market. It offers an alternative to
traditional employment for those who desire a flexible income earning
opportunity to supplement their household income, or whose responsibilities
or circumstances do not allow for regular part-time or full time employment.
In many cases, direct selling opportunities develop into a fulfilling career
for those who achieve success and choose to pursue their independent direct
selling business on a full time basis.
As in every business this industry
is also beset unscrupulous elements trying to cash in on the new
opportunities. The people buying products should thoroughly verify and ask
for proof of compliance with local laws, company background, and exhaustive
testimonials on product usage claims before buying these products. The
quickest way to assess the company is the length of time they have been in
business. Any company with over a decade in the business is certain to have
met all requirements as otherwise they may not have survived for so long.
Similarly people wishing to join
the business opportunity must make sure that the entry into the business is
inexpensive and any investments should only be on products and the quantity
of stocking should be purely on what you can sell within a reasonable period
of time say a 15 day inventory. Stocking should not be done on the basis of
income claims or lure of higher positions. It is very important not to be
swayed by huge income claims. Please remember that all business can be
developed only on principles of hard work, ethics, and bringing value to the
customers and income can be generated only with good products and not on
mere recruitments.
Detailed Guidelines of IDSA and
WFDSA can be sent on request. Please let me know your interest in the
industry and whether you are associated with any network marketing
business.
|