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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.
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