Hey! Are you also looking for these queries on the internet?Â
More than 100s of global marketing companies today are following the Network marketing strategy.
People who want to start your own network marketing business often procrastinate on whether it’s a good choice or a bad choice, and most of us are also of the view that Network marketing business is a complete scam, so, in this blog, I am going to answer the most asked questions regarding network marketing.
Should you or should you not join a network marketing business and which network marketing is best in India to start with.
I have researched and mastered some of the best network marketing businesses to guide you with the top 10 network marketing companies in India and how they operate, strategy and income. Stick to this blog to find out more about network marketing.
It is expected to grow at a CAGR of 4.8% from 2022 to 2030, reaching a projected value of $291.59 billion by 2030.
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Many a times we are surrounded by questions like what do you mean by network marketing?, or who is a network marketer?
Generally we seem to be confusing ourselves with a network marketers role of earning commission by adding new partners in lieu of a handsome amount and faking them with intangible products.Â
Am I not correct, yes, I agree with you halfway as many companies in the face of network marketing companies are into driving such business and creating a scam by risking investors money into a highly risky ponzi scheme.
In this blog I have tried my best to avoid all such companies which have scammed people by network marketing.
Look before you enter into any network marketing business the real secret lies in to understanding how do network marketing works ?Â
Let’s understand what is a network marketing scheme and can network marketing make you rich?
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What is Network Marketing?
In today’s world network marketing is one of the most widely spread marketing strategies, there is a broad scope of network marketing in India in 2024 and future and is considered as the most suitable business for passive income.
Network marketing is considered as a business model that involves person-to-person sales of product or services by independent representatives, often called business partners.Â
Seems easy isn’t it, you may ask, this is just simple sales then why am I calling it network marketing. Well!
The catch here is that network marketing business not only involves sales of product or services, but it also requires you to build a network of business partners or salespeople to assist with lead generation and closing sales.
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How does Network Marketing works? (Network Marketing Business Model)
Often called direct selling or multi-level marketing (MLM), the network marketing business model works as a network business that involves roping in new business partners by selling products or services.
So, Is Network marketing is better than a job? No not necessarily! Will come to this later.Â
 When you are willing to join a network marketing business you will have to buy a product and you are now a business partner who needs to add more partners in business and sell that product to them to earn a good commission.
Now with every sale, a new partner is roped in and hence a new network is built, which contributes more commission to the person in the top tier as well as the middle tier.
Therefore, the income of the salesperson is totally dependent on networking and adding new partners and persuading them to make sales and make new partners and repeat the process.
Those who got in early and are in the top tier make the most income from this.Â
The most common product categories in network marketing include wellness products (supplements, weight management), cosmetics and personal care, household goods, and essential oils.
Factors to keep in mind before selecting a Network Marketing Company
If you are thinking of starting your own network marketing business and joining a network marketing company and are confused on which network business to choose from the big list of Indian network marketing companies, then hold tight.
As said earlier I have managed to pick a list of well reputed network marketing companies on the basis of a few factors. Now before I jump to the list, let’s understand the factors.
There are certain factors to keep in mind before selecting a network marketing company they are:-Â
Passive income: Multi Level marketing companies or Network Marketing Company offer you some of the best opportunities for earning extra source of income as part time or full time.
You need to choose the company that is flexible according to your needs. Also research on which network marketing company pays the best.
Business Ethics: Many of us know that network marketing to earn money is the only way. Before choosing any Network marketing company to start with, please oversee the history, products, prices and compare the commission earned on each sale, there are many bogus companies that fake with high commissions and get you into a scam.
Sales Skills: Network marketing needs a lot of knowledge and high skills on sales. Many people say that you do not require any formal degree or education but that is completely wrong advice, you need to have good education and expertise in selling to persuade people to join a business and sell products.
Sector Expertise: Sales is obviously not any easy task, but what makes it easy is in depth knowledge about the product or customers, if you already have good knowledge in a field such as healthcare, Beauty, Ayurvedic, Wellness, or FMCG Products you must choose a network marketing company based on that.
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Glossary of Network Marketing Terms
- Binary Plan- A pay structure where you build two legs in your team or subtrees under every distributor.Â
- Downline-Â The people you recruit under you.
- Upline-Â Your sponsor and the people above them in the business.
- MLM (Multi-Level Marketing)- A business model where the sales force is paid not only for the sales they make personally but also for the sales of people they recruit.
- Direct Selling- Selling products directly to the consumer away from a fixed store.
- Sponsor- Someone who is already in the network marketing business who recruits a new person.
- Autoship- A program where you get a monthly shipment of products automatically.
- Compression- When someone in your downline drops out and you move up.
- Fast Start Bonus- A bonus paid to new distributors for achieving certain goals within a short time of joining.
- Generation- A level in your downline organization, used to calculate bonuses.
- Matrix Plan- A pay plan with a fixed width and depth in the downline.
- Breakaway- When a downline distributor’s volume is no longer in your group volume.
- Personal Volume (PV)- The volume of sales attributed to your personal purchases and customer sales.
- Group Volume (GV)- The total volume of your team and everyone in your downline.
- Unilevel Plan- A pay plan where you can recruit unlimited frontline distributors.
How Big is Network Market Industry?
Network marketing business has a variety of names such as multi-level marketing (MLM), direct selling, referral marketing, affiliate marketing, consumer-direct marketing, and the most recent home-based business franchising.
Companies who are into the network marketing model create a network of business partners, these partners or salespersons are encouraged to make their own network of salespeople.
Every time there is a sale on the downline the upline salesperson earns a good commission on that sales and on all sales made by the people in the tier they created.
The network marketing business is looming large with its ever growing capacity, in order to understand how big is the network marketing industry, we need to discuss the global figures around this mega business model.
- The industry is projected to reach INR 10,000 crore by 2023, growing at a compounded annual growth rate (CAGR) of 30-35%..Â
- Globally the USA tops the chart as a worldwide leader in retail sales with yearly sales of $35.21 billion.Â
- Network marketing company Amway generated revenue of about 8.5 billion USD in 2020 alone.Â
As per reports, approx 62% of members globally participate in network marketing to earn long-term income and in the USA alone, about 10% of sellers make over $100 weekly through network marketing.
Network marketing companies have faced criticism and skepticism over their business models, product claims, and recruitment practices.
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Example of Network Marketing Companies
Network marketing companies are everywhere, and mostly they are into selling FMCG products, that are related to healthcare, food, beauty, natural products or educational products.
Some great examples of network marketing companies are Amway, Nutrilite, Forever Living, Herbalife, Bada Business and many more.
Scope of Network Marketing in India 2024
Investors and experts have already suggested that there is a great scope of Network marketing business in future and scope of network marketing in India in 2024 is quite commendable as per the figures available globally.
After the USA, the second biggest market for network marketing companies is Asia and to be precise India will be the next big giant in anything.
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No. 1 Network Marketing Company in India
I am going to ask you a very simple question: How many times have you been approached by a network marketing company? And how many times did you take interest in that business?Â
Today many network marketing companies have their operations in India, most of them tend to offer services and it is a challenge for beginners like me to choose a network marketing company.Â
Obviously the answer is the best one, but around so many giants operating in the market today you will be confused about which is the best one to start with.
Worry! not there are reasons that make a few handful among these network marketing companies the best in the industry.
I have carefully hand selected a few companies which according to me are the Top 10 network marketing companies in India and have a global presence as well.
As per reports 2023, the no. 1 network marketing company in India is Forever living with $4bn (2022).Â
Best Top 10 Network Marketing Companies
1. Amway
Amway is one of India’s oldest and most well-known network marketing company. It is an American company that markets its products through a network marketing business strategy.
It has warehouses in 34 Indian cities and 140 head offices. Amway specializes in health-related and personal-care items, with over 200 products in its range.
Richard DeVos is the founder of the company. According to projections, Amway is the Second leading network marketing business in India by June, 2023 Report.
2. Modicare
Modicare is India’s fastest growing MLM company. It was founded in 1996 and is owned by the Modi Group of Industries.
Modicare sells its products directly to consumers via direct sales or network marketing in a pyramid structure.
The primary principle of Modicare, or the Modi group of industries, is to engage, expand, and improve the quality of life of people and their customers.
3. Eazyways
Eazyways is, in my opinion, the most trustworthy and profitable MLM organization in India. Its direct-selling company is based in Delhi and is government-approved.
eazyways is focused on cosmetics, wellness, luxury, fragrance, food, kitchen items, detergent powders, and soap, among other things. More than 50 million users have joined the organization since its start.
This company’s two key brands are Natural Antioxidant and Aarogya Vatika.
4. Herbalife
Herbalife began by selling nutritional and health supplements.
They sell over 100 products and have approximately 2.3 million distributors in 95 countries.
It has $4.5 billion in revenue and a $3.38 billion net worth.
5. Vestige
Since 2004, Vestige has been a leading network marketing company in India. They sell health and wellness products. They have 3000 sales outlets spread around the country.
Vestige is a direct-selling strategy-based marketing company that is also an IDSA-affiliated member (Indian Direct Selling Association).
Vestige’s revenue in 2023 would be 500 crore INR.
6. Forever Living
Forever Living is another US-based company that sells its products and services through an MLM business model. Forever Living was founded in 1978 by Rex Maughan, the CEO of the company.
They sell nutritional products and vitamins, as well as Aloe Vera-based drinks and products and other health-related items.
They have millions of distributors across 160 countries. Their net worth is 2.75 billion US dollars, while their revenue is 4.44 billion US dollars. Forever Living is Leading Network Marketing Company in 2023.
7. Oriflame
Oriflame is a Swedish cosmetics company with over 100 products on the market. Oriflame, like the others, is simply an MLM or direct selling company.
Customers can also purchase the company’s products straight from their official website if they so wish.
This firm is one of the most popular network marketing companies in India and does not rely only on MLM strategies or pyramid structures. The company’s revenue is $1.4 billion.
8. Safe Shop
Anyone has the option to make money by selling the things that Safe Shop promotes. It is one of the most well-known multi-level marketing companies in India.
Personal care, nutrition, food supplements, infant products, Ayurveda, kitchen supplies, and other items are available from the company.
Safe Shop has been in business in India for more than 20 years. In 2023, the secure shop’s revenue will exceed 500 crores.
9. 4Life
4Life, a leading network marketing firm in India located in the United States, provides health products while protecting their clients’ health.
4Life sellers can earn money by purchasing items or starting their own business as a 4Life distributor.
The company was formed in 1998 by Bianca Lisonbee and David Lisonbee. 4LIFE’s net worth is estimated to be about $100,000.
10. DXN India
DXN is a Malaysian company that does business in over 180 countries. They offer their members a retail profit of 15 to 25% and a group profit of 6 to 21%.
They sell clothing and accessories, food and beverages, home appliances, healthy food supplements, household supplies, personal care, skincare and cosmetics, water treatment, and other items.
DXN has approximately seven million distributors and more than a thousand staff. Their revenue is $927.0 million.
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Comparision of Top 10 Giants of Network Marketing Companies
Company Name | Founded | Product Categories | Minimum Investment | Commission Structure | Training Provided |
Amway | 1959 | Health, Beauty, Home Care | ₹4,400 | Up to 21% | Online & In-person |
Modicare | 1996 | Health, Wellness, Personal Care | ₹499 | Up to 35% | Online & Seminars |
Eazyways | 2012 | Wellness, Cosmetics, Home Care | ₹1,999 | Up to 25% | Online Training |
Herbalife | 1980 | Nutrition, Weight Management | ₹3,500 | Up to 50% | Online & Workshops |
Vestige | 2004 | Health, Personal Care, Agriculture | ₹1,000 | Up to 20% | Online & Offline |
Forever Living | 1978 | Aloe Vera Products, Nutrition | ₹4,000 | Up to 30% | Online & Events |
Oriflame | 1967 | Cosmetics, Personal Care | ₹299 | Up to 24% | Online & Catalogs |
Safe Shop | 2000 | FMCG, Personal Care, Wellness | ₹1,500 | Up to 21% | Online Training |
4Life | 1998 | Health, Wellness | ₹2,500 | Up to 64% | Online & Conferences |
DXN | 1993 | Health, Personal Care, Food & Beverages | ₹2,000 | Up to 25% | Online & Offline |
Why Network Marketing is better than job?
As said earlier, network marketing is not an easy task, Influencing people to buy products and sell them is one of the most top-rated skills required to excel in network marketing.
However, the best reason to join a network marketing business and the reason that people call network marketing is better than a job is that it provides you the flexibility to work from anywhere and anytime.
Therefore, even if you are in a 9-to-5 corporate job, you can easily enroll yourself into a network marketing business to earn a handsome passive income.
Why Network Marketing is the future?
It will be incorrect to explain to you that network marketing is the future, I halfway agree to the fact that it is the future of marketing and sales, however, companies in the FMCG sector are rapidly adopting network marketing.Â
There are certain primary goals of network marketing that make it a great choice for many marketing companies.Â
- Creating a large network of people willing to sell the products or services.
- Creating an incentive based network to boost sales of a company.
Challenges include high distributor turnover rates, concerns about product quality and efficacy, and allegations of misleading income representations.
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Can network marketing make you rich?
I have already answered this in the article, to be precise network marketing can make you rich, yes, it can. Only if you have the highest skills of influencing people and creating a team under you.
if you are up in the line then you earn an easy income as the network you have made in the past, down the line is actively selling products and you can earn a great commission.
Loved this!
thanks
Excellent information.
Thanks…M Swaroop
Mostly wellcome,for your infotmation,thanks
Thanks Sarata Chandra Biswal
Dhanyawad sir given short knowledge of network marketing
Thanks, Ashwani
My Pleasure
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