MULTI-LEVEL MARKETING OR NETWORK MARKETING

WHAT IS MULTI-LEVEL MARKETING?

Multi-level marketing (MLM) (also called network marketing or NM) is a business model that combines direct marketing with franchising. In a typical multi-level marketing system, individuals associate with a parent company as an independent contractor or franchisee and are compensated based on their sales of products or service, as well as the sales achieved by those they bring into the business. This is like many franchise companies where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager.
In a legitimate MLM company, commissions are earned only on sales of the company's products or services. No money may be earned from recruiting alone ("sign-up fees"). One must analyze the compensation plan to determine whether participants are paid from actual sales to customers and not from money received from new recruits. If participants are paid primarily from money received from new recruits, then the company is an illegal pyramid or Ponzi scheme.

WHERE IS MULTI-LEVEL MARKETING IN WORLD ECONOMY?
MULTI-LEVEL 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.

CONTROVERSIES SURROUNDING MLM
Multi-level marketing has a recognized image problem due to the fact that it is often difficult to distinguish legitimate MLMs from illegal scams such as pyramid or Ponzi schemes. MLM companies work legitimately in the United States in all 50 states and in more than 100 other countries, and new MLM companies may use terms like "affiliate marketing" or "home-based business franchising". However, many pyramid schemes try to present themselves as legitimate MLM businesses.

NEED OF REGULATORY AUTHORITY FOR MLM
In India, Insurance sector faced many problems in its early times but it is accepted and now it has become a part of life. Changes are not accepted easily. There are many MLM networking companies growing like mushrooms. Many companies have run away overnight having made handsome amount. The poor employed youth and folk are being cheated.
Like insurance regulatory development authority (IRDA) there should be a body that ensures the monitoring, regulating and controlling of MLM.

It has been two years since I joined multi-level marketing through RCM Business. I may not have achieved any pin level so far, but this business has been immensely satisfying to me. The reason why I haven’t been able to achieve any pin level so far is that I have being doing this business part-time. But I have got full support from my husband Sh. Ghanshyam Maurya and other family members. I have lost nothing but only gained lot of knowledge and experience doing this business. This is an ‘Earn While You Learn’ process. The best part of it is that you don’t have to do anything special and don’t need huge capital to do this business. You have to purchase like you have being till now. You just have to make purchase from RCM Bazars and RCM Pick-Up Centres.

Every time critics try to write off RCM Business like many other MLM companies mushrooming all over the country, Mr. T.C. Chhabra comes up with something so special and so marvelous which overwhelms RCM distributors with joy and stuns the critics into silence. The recently announced Periodical Purchase Package Plan and decrease in MRP and increase in B.V. of a number of RCM products has only pumped up RCM family with confidence and encouragement. For this, he deserves huge appreciation from RCM family as well as outside fraternity. His book ‘Jeevan Ek Khoj’ is like a cup of nectar. I wish that this book may turn out to be a best-seller. I have suggested this book to many people.

The recently launched SMS Pack and STD Packs have added a new zing to mobile service. This will attract more and more RCM distributors to have RCM mobile connections and facilitate communication among RCM distributors.

Being an RCM distributor, I consider it my duty to put up some useful suggestions though it may not be appropriate for a common person like me to suggest anything to a great entrepreneur like Mr. Chhabra. My suggestions are as follows:

1. RCM Mobile prepaid plan is a very useful plan. But after introduction of 3P system, prepaid mobile service can be made more effective. To do this, recharge through SMS should be introduced and the payment should be deducted from points collected on B.V. by the distributor. This system will enable the distributors to recharge their mobile account while they are in far-flung areas where RCM PUC or Shopping Points are hard to find.
2. Cosmetic products of premium quality should be launched so as to gain more hold on distaff side. Products like face scrub, sunscreen lotion, lipstick, lip gloss, nail polish etc. will help in attracting more and more women to this great business.

When we look back at the progress made so far by RCM Business, our faith only gets firmer that in near future all kinds of products will be available under one brand and that is RCM.

At the end, I once again wish all the best for RCM Business as its growth is our growth and its development is our development.