Multi Level Marketing also called MLM is fast gaining ground in India. Products that are commonly sold and bought by people in India include body, beauty and skincare products and herbal or organic healthcare and nutritional supplements for treating or preventing various disease.
Unfortunately, MLM in India is widely associated with scams and frauds. This is because a large number of fraudsters launched fake financial schemes that offered high returns for very low investments. These schemes were actually Pyramid or Ponzi schemes that did not offer anything tangible to investors. Instead, enrolled members had to enlist newer ones to recover expenses and depend upon the networks they create to get any significant income. Consequently, Ministry of Finance and Reserve Bank of India had to declare all financial MLM schemes as illegal. In April 2018, Indian police arrested perpetrators of a crypto-currency scam involving Bitcoin.
Understanding MLM and Legalities
Though the Indian government has banned MLM involving financial products, it has provided sufficient encouragement to local and foreign firms that are legitimate to operate in this country. Consequently, multinational companies (MNCs) that operate on principle of MLM are flourishing in India.
Beauty and healthcare products of these MNCs and local companies are approved by Food and Drug Administration (FDA) and Food Safety and Standards Authority of India (FSSAI). Some products are cleared by Ministry of Ayurveda, Yoga and Naturopathi, Unani, Siddha and Homeopathy (AYUSH). You can enroll with any of these approved companies and earn a decent income every month by promoting and marketing their products to and through your social network.
To succeed at MLM, there are some basic tips and tweaks. Due to increasing competition, MLM associates often find it difficult to compete with others. The three tips we provide can help you make the best of your MLM efforts.
Tip-1: Promote & Sell Online
The prospect of selling online sounds scary to many people. However, there is nothing to worry about. In fact, online promotions and selling is free and can be done with some creative skills and ingenuity.
Nowadays, there are several free online resources that allow you to promote and market various products. You can look at Facebook Business and Facebook Marketplace. These two resources are given free by the social media giant. All you require is a Facebook account. Through this account, post excellent pictures and description of the MLM products you are selling. Here you will require some skills in writing brief and creative descriptions of every product, take attractive pictures and post them on Facebook Business and Facebook Marketplace.
Facebook Business and Facebook Marketplace allow you to provide contact details and receive payments online too. These free resources enable you to reach to all your relatives and friends as well as promoting to their social networks. Also provide a link to the company’s website, whose products you are promoting online. This creates a sense of trust among prospective about the product being from a trusted brand rather than some fly-by-night operator.
Tip-2: Use Social Gatherings
Social gatherings are very common in India. They occur at religious shrines, community halls, schools and educational institutes as well as in residential neighborhoods. People attending social gatherings and similar events have ample time to spend. Hence, set up a small kiosk using table and a couple of chairs at the venue. Display your products and give away free promotional material provided by your MLM principle.
Make sure you have sufficient calling cards to hand out to any visitors that may venture to your small stall. Brief them about the benefits of various products, give them highlights of the company and encourage them to try your stuff. Never appear too anxious for a sale since it may put off visitors or depict you like a fraudster trying to make a quick buck. The lesser you promote aggressively, the more interest people will show.
A classic example of how to use social gatherings to promote MLM products is from Cutco Cutlery, an American MLM giant. The company encourages its MLM associates to hold demonstrations at parties and sometimes, pays some expense towards hosting or entertaining visitors. Find out if your MLM company offers such facilities and utilize them where possible.
Tip 3: After Sales Service & Follow Up
Generally, most MLM associates do not provide after sales service and follow ups. In fact, several do not even consider it as part of their MLM activity. This tends to put off customers that you have managed to get by exerting extra efforts. Additionally, it prevents your customers from spreading word-of-the-mouth publicity about your brand and the service.
By after-sales service we mean calling up your customer and getting their feedback for using a healthcare or beauty product you have sold some days ago. Understandably, some customers may express dissatisfaction over buying and using a product. This need not put you off. MLM companies look out for positive as well as negative feedback from clients. You can always report whatever feedback you get to the MLM company and await their response. Do not forget to convey this response to your customer. It imparts a sense of responsibility on your part and leaves the customer feeling satisfied that the MLM company and you are genuinely concerned.
Rather than awaiting a customer to ask for fresh stocks, exert efforts and call. Having made the sale, you will be aware of how much a client has bought and how long would a particular product last. Call a couple of days in advance before the customer’s stock expires and enquire whether they need more.
MLM is about making money by working at ease. It opens avenues for everyone to get rich, regardless of qualifications and age. All it requires is some extra efforts from you and the will to strike it big. Most MLM associates flounder and fail because they are too busy convincing other people to try their product rather than focusing on retention of existing customers. While you may bag a new customer, there are risks of losing two that have already bought you product to a close competitor.