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What you must definitely know about Multi Level Marketing

What you must definitely know about

Multi Level Marketing?

Copyright of  R.G. Srinivasan


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 are bound by 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 a renowned economist and author of New York Times Best sellers such as ‘Unlimited Wealth’ and ‘The Next Trillion Dollar’ 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 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 country chapters or associations which are in turn members of WFDSA subscribing to the Better Business Practices.  The addresses may be had at the WFDSA website.

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 traveling 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 with 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 with 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 WFDSA can be read in the respective website.



About the Author

R.G. Srinivasan is founder of Born To Win Forum. He has an experience of over two decades in sales & marketing and general management functions in India.  He is a certified trainer and consultant in training design & methodologies,  focused on personal effectiveness and motivational training.  He is also the author of ebooks, publishes 2 ezines on success and motivation and Home Business with an international circulation.  His articles are published in more than 50 portals and websites across the world.  He is featured as an Expert Author in .  Check out his home business ezine at